To better align your agent's incentives to your own when buying securities
a. Offer the agent a high price
b. Offer the agent a low price
c. Offer the agent a price based on performance of the security
d. All of the above
c
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Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. The slope of Country A's production possibilities frontier is _______, and Country B's is __________.
A. 5; 3
B. 30; 3
C. 1/5; 1/3
D. 1/5; 1/3
When a country's central bank temporarily switches from an expansionary to a more conservative monetary policy, one would expect the exchange rate to:
a. depreciate in the short run, then return to its initial value. b. appreciate in the short run, then return to its initial value. c. depreciate in the short run and then stay higher. d. appreciate in the short run and then stay lower.
The Lojack car recovery system allows the police to track stolen cars. As a result, they not only recover 90% of Lojack-equipped cars that are stolen but also arrest many auto thieves and shut down many "chop shops" that take apart stolen vehicles to get at their used parts. Thus, Lojack provides both private benefits and positive externalities. If the government were to subsidize Lojack purchases, this would...
________: the level of output per unit of input
Fill in the blank(s) with correct word