A situation in which one party makes a contractual agreement with a second party in the expectation that the second party will act on its behalf is known as
a. an adverse selection relation
b. a signaling relation
c. an authority relation
d. a principal-agent relation
e. a nonmarket relation
D
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Which US President was in office during World War I?
a. Grover Cleveland. b. Herbert Hoover. c. Abraham Lincoln. d. Woodrow Wilson.
This year, Tom sold his 1998 minivan to Honest John's Used Car Emporium for $5,000 . Honest John then sold the van to Bob for $7,000 . How much would be recorded in GDP this year from these transactions?
a. $0 b. $2,000 c. $5,000 d. $7,000 e. $12,000
Which of the following is true?
A. Investments that pay a return over a longer time horizon generally have less risk. B. Risk-free investments are the best benchmark for measuring the risk of all investment strategies. C. Investments with a greater variance in the size of the future payoff generally pay a lower expected return. D. Investments with higher risk generally have a higher expected return than risk-free investments.
If a competitive market operates perfectly, it relies on:
A. the number of people buying goods. B. the laws of supply and demand. C. how many products can be produced for sale. D. how much people are willing to pay for the products.