The common factors that give rise to all principal-agent problems include the
a. unobservability of some manager-agent action
b. presence of random disturbances in team production
c. the greater number of agents relative to the number of principals
d. a and b only
e. none of the above
d
You might also like to view...
Critically evaluate the following statement. "Only poor nations face scarcity. Rich nations have everything they need and have therefore conquered scarcity."
What will be an ideal response?
Refer to Figure 4-18. How much of the tax is paid by buyers?
A) $8 B) $5 C) $4 D) $3
The difference between currency outstanding and currency in circulation is equal to
A) vault cash. B) bank reserves. C) coins issued by the U.S. Treasury. D) zero; they are the same thing.
Suppose the U.S. government is auctioning the rights to mine for gold in a government-owned region on the West coast. Gold has been found in areas close to the region to be auctioned and gold has a fixed market price. The value of the rights to mine for gold in this region is an example of ________.
A) a common value B) an independent private value C) a correlated value D) a public value