As it relates to the political process, the principal-agent problem results from the:
A) negative externalities that are created by some policy actions.
B) political rules that encourage elected officials to engage in unethical and illegal behaviour.
C) paradox of voting.
D)inconsistency between voters' interest in programs and politicians' interest in reelection.
A
D)inconsistency between voters' interest in programs and politicians' interest in reelection.
You might also like to view...
Tom and Jerry have two tasks to do all day: makedishes and build fences. If Tom spends all day makingdishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day makingdishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. Jerry has a comparative advantage in:
A. dish production because he has the lower opportunity cost of a dishes. B. dish production because he has the higher opportunity cost of a dishes. C. fence production because he has the lower opportunity cost of a fence. D. fence production because he has the higher opportunity cost of a fence.
The management function of a sufficiently large firm should be separated from finance and residual claimancy because of:
a. differences in skill requirements and opportunity costs. b. differences in attitudes towards risk. c. differences in investment choices and responsibilities. d. differences in beliefs about a new strategy's probability of success.
In one Asian country, scientists developed a new technology that made housing construction more efficient. They saw increased production in housing and electronics. How did the development in construction most likely lead to an increase in electronics?
a. The government subsidized the electronics industry so it would not fall behind. b. It motivated electronics engineers to outcompete the construction engineers. c. Some resources previously used in construction were shifted to electronics. d. Both industries used the exact same tools and technology.
People acting in their own self-interest is the basis of the:
A. principle of supply and demand. B. principle of voluntary exchange. C. real-nominal principle. D. principle of scarcity.