Suppose Bob owns two factories that are located several hundred miles apart. Bob decides to manage one of the plants himself, and he hires another person to manage the second plant
For purposes of operating the second plant, who is the agent and who is principal? A) Bob is the agent and the manager is the principal.
B) Bob is the principal and the manager is Bob's agent.
C) Both Bob and the manager are principals.
D) We need more information to determine the identities of the principal and the agent in this case.
B
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The proposition that in the long run when real GDP equals potential GDP, an increase in the quantity of money leads to an equal percentage increase in the price level is the called the quantity theory of
A) constant velocity. B) the long run. C) money. D) inflation. E) equal change.
The effect of a change in the price of tea on the quantity of coffee demanded is measured by the
a. price elasticity of demand b. substitute elasticity of demand c. cross-price elasticity of demand d. income elasticity of demand e. alternative elasticity of demand
The income-expenditure identity for an open economy is:
A. Im ? Ex = C + I. B. Y = C + I + G. C. Y + G = C + I ? NX. D. Y = C + I + G + NX.
A monopolistic competitor behaving in a profit-maximizing way will
A) not advertise. B) advertise as much as it can in order to increase its sales. C) advertise to the point where the additional sales from advertising equal the additional marginal costs of the product. D) advertise to the point where the additional revenue from one more dollar of advertising just equals the extra dollar cost of advertising.