In the corporate world of business, the principal-agent problem arises between:
A. Workers and managers
B. Managers and stockholders
C. Stockholders and bondholders
D. Corporations and their banks
B. Managers and stockholders
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Disposable personal income is defined as
A) personal income less personal taxes. B) personal income less personal taxes plus indirect sales taxes. C) personal income less transfer payments plus personal taxes. D) personal income less depreciation.
Sail with Us is considering a three-year advertising campaign. The campaign will cost $100,000 at the end of each of the three years. The managers of Sail with Us have estimated that the campaign will generate $80,000 a year in additional profit for the next five years. If the discount rate is 2 percent, what is the net present value of the advertising campaign?
A) $90,213 B) $95,228 C) $78,569 D) $88,68
Which of the following would shift a supply curve to the right?
a. Taxes b. Import restrictions c. Import duties d. Subsidies
Keeping an extra $200 in your checking account to pay for possible car repairs illustrates the
A) speculative demand for money. B) transfer demand for money. C) precautionary demand for money. D) transactions demand for money.