In the presence of asymmetric information, production efficiency is assured when the principal and agent share the profit
Indicate whether the statement is true or false
False. Since the agent faces full marginal cost but receives only a fraction of the marginal benefit, joint profit is not achieved.
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The marginal rate of substitution is the rate at which a person is willing to substitute one good for another good while remaining on the same indifference curve
Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A) Compared to stocks, bonds have a higher return. B) Compared to stocks, bond returns have a higher standard deviation. C) Compared to bonds, stock returns have a lower standard deviation. D) Compared to bonds, stock returns have a higher standard deviation.
In a deposit-refund system,
a. the refund component compensatesthe consumer for proper waste disposal or recycling activities b. the deposit component should be set equal to the MSC of illegal waste production c. the costs of monitoring and enforcement are higher than if a pollution charge were used d. actual polluters are not penalized for decisions that pose a risk to the environment
Over the period from 1870 to 2010, the growth of real GDP per capita tended to be more rapid between ________, particularly for ________.
A. 1870-1950; the United States B. 1950-2010; Japan C. 1870-1950; Canada D. 1870-1950; Japan