A conflict between an owner and a manager may occur when
A) the manager earns more when the firm has higher profits.
B) the manager is seeking to maximize leisure time.
C) the owner can easily observe the manager slacking off and punish him accordingly.
D) the firm is very small and the manager must perform multiple tasks.
B
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What is the maximum a monopolist would be willing to spend on rent-seeking behavior?
What will be an ideal response?
In Japan, interest rates are close to zero. As a result, Keynesians would argue that money demand
a. has become much more interest rate elastic. b. will shift upward. c. has become much less interest rate elastic. d. will shift downward. e. will remain unchanged.
Which of the following statements is correct?
a. The total income in the economy that remains after paying for consumption and government purchases is called private saving. b. The sum of private saving and national saving is called public saving. c. For a closed economy, the sum of private saving and public saving must equal investment. d. For a closed economy, the sum of consumption, national saving, and taxes must equal GDP.
The total market value of final goods and services that could be produced in a given time period at full employment is called (2)
What will be an ideal response?