What is the principal-agent problem as applied to corporations?
What will be an ideal response?
The principals are the owners of the corporation who want to see their profits maximized. The agents are the hired managers of the corporations who might serve their own goals instead. The principal-agent problem is to devise ways to make managers (the agents) act in the best interest of the owners (the principals).
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Renewable resources can be exhausted
Indicate whether the statement is true or false
For the past 40 years, growth in health care spending has outpaced growth in the rest of the economy by _____ percentage point(s) annually.
a. 2-3 b. over 6 c. 4-5 d. less than one
Recall the Application about the marginal cost involved in producing crude oil to answer the following question(s).Recall the Application. If the price of oil is only $15 per barrel, which country is most likely to be selling crude oil?
A. Saudi Arabia B. the United States C. Canada D. Norway
An example of a resource
What will be an ideal response?