Whenever total planned expenditures differ from real GDP
A) unplanned inventories will remain unchanged.
B) government spending will adjust.
C) tax revenues will move the economy back to equilibrium.
D) unplanned inventories will change.
D
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Which of the following statements regarding principal-agent relations is CORRECT?
A) Workers are principals for managers. B) Stockholders are agents. C) Managers are both principals and agents. D) All of the above answers are correct.
A tax of 20 cents per unit of imported garlic is an example of a(n)
A) specific tariff. B) ad valorem tariff. C) nominal tariff. D) effective protection tariff. E) a disadvantageous tariff.
A bond is
A) a legal claim to a part of a corporation's future profits that includes voting rights. B) a legal claim to a part of a corporation's future profits that does not include voting rights. C) a legal claim against a firm, providing a fixed annual coupon payment and a lump-sum payment at maturity. D) a nonlegal promise to provide an annual payment to the holder when the corporation makes profits.
If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:
A. marginal factor cost is $6. B. marginal factor cost is $200. C. total wage cost is $1,200. D. total wage cost is $7,200.