Economists refer to the conflict between the interests of shareholders and the interests of top management as
A) a stock-equity problem. B) a liability problem.
C) a financial intermediary problem. D) a principal-agent problem.
D
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A higher rate of saving at the national level will, in the long-run ________
A) cause a decrease in levels of capital and output B) have no effect on levels of capital and output C) lead to an increase in population growth D) cause an increase in levels of capital and output
If the Canadian dollar depreciates, holding other things constant, it makes Canadian imports
a. More expensive for Canadian customers b. Less expensive for Canadian customers c. Neither more or less expensive for importers d. None of the above
A perfectly elastic demand curve will:
a. be a vertical straight line. b. be a downward sloping straight line. c. be a horizontal straight line. d. be an upward sloping straight line.
Which of the following correctly describes the external benefit resulting from an individual's purchase of a winter flu shot?
A. The flu shot is cheaper than the cost of treatment when you get the flu. B. The income of doctors increases when you get the flu shot. C. The flu shot reduces the likelihood others will catch the flu. D. The flu shot reduces the likelihood you will miss work as the result of sickness; therefore, you will earn more income.