Answer the following questions true (T) or false (F)
1. Corporate governance refers to the way in which a corporation is structured and the effect that structure has on the corporation's behavior.
2. Corporate managers and shareholders do not always have the same goals.
3. Tying salaries of top managers to the profits of the firm is a way to reduce the effect of the principal-agent problem.
1. TRUE
2. TRUE
3. TRUE
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Most cartels self-destruct because cartel members cheat
Indicate whether the statement is true or false
If point C is now 9 units of guns and 8 units of butter, the maximum units of guns possible to produce is 17 and the maximum units of butter possible to produce is 13, the production possibility curve would have shifted _____________ (outward/inward).
American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Which country has an absolute advantage in producing cars? In producing grain?
a. U.S in cars; Japan in grain b. Japan in cars; U.S in grain c. U.S in cars; U.S in grain d. Neither in cars; U.S in grain
Physical currency is ________ popular than e-cash, ________
A) less; and both are portable and recognizable B) more; and both are portable and recognizable C) more; but only physical currency is portable and recognizable D) more; and both are portable, untraceable and anonymous E) less; but both are portable, untraceable and anonymous