The name economists give the process by which stockholders gather information by frequent monitoring of the firm's activities is
A) costly state verification.
B) the free-rider problem.
C) costly avoidance.
D) debt intermediation.
A
You might also like to view...
If foreigners spend more on U.S.-made goods and services than we spend on theirs
A) foreigners must borrow from the United States or sell U.S. assets to make up the difference. B) all U.S. national saving remains in the United States. C) we must borrow from foreigners because of low imports. D) funds flow in from abroad to help finance U.S. investment.
Price elasticity of demand basically measures
A) the reliability of a product. B) the responsiveness of consumers to price changes. C) the variability of price changes. D) the percentage change in market price as a result of a change in demand.
"Take thou no usury of him, or increase, but fear thy God, that thy brother may live with thee" (Leviticus 25:36). Thus biblical instruction was the foundation for usury laws, both ancient and modern, and to an economist represent an early example of
a. price floors b. price ceilings c. target prices d. deficiency payments e. market-determined prices
If the GDP deflator in 2009 was 120 compared to a value of 100 during the 2004 base year, this would indicate that
a. the inflation rate during 2009 was 20 percent. b. the general level of prices during 2009 was 20 percent higher than during 2004. c. the inflation rate during 2009 was 120 percent. d. real GDP was 20 percent higher in 2009 than 2004.