In corporations, a principal-agent problem can arise when
a. the shareholders are the principal and the managers are the agent.
b. the board of directors is the principal and the managers are the agent.
c. the shareholders are the principal and the board of directors is the agent.
d. All of the above are correct.
d
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According to your textbook, the current war on drugs in the United States has similar consequences to the earlier prohibition on alcohol. The similar consequences include
A) an underground supply and demand process. B) the production of more powerful and dangerous forms of the illegal products. C) production and distribution being controlled by people with a comparative advantage in crime D) All of the above. E) None of the above.
What is an indifference curve?
A) It is a curve that shows the combinations of consumption bundles that give the consumer the same utility. B) It is a curve that shows the total utility and the marginal utility derived from consuming a bundle of goods. C) It is a curve that ranks a consumer's preference for various consumption bundles. D) It is a curve that shows the tradeoff a consumer faces among different combinations of consumption bundles.
By 1913, steel making by Bessemer converter had been completely surpassed by
(a) continuous casting integrated mills. (b) the Basic Oxygen furnace. (c) electric furnaces. (d) open hearth furnaces.
In order for a price ceiling to "bind," it:
A. must be set above the equilibrium price, and will likely cause a shortage. B. must be set below the equilibrium price, and will likely cause a shortage. C. must be set above the equilibrium price, and will likely cause a surplus. D. must be set below the equilibrium price, and will likely cause a surplus.