The principal is distinct from the agent in the principal-agent model because
a. the principal offers the contract to the agent.
b. the principal is fully informed.
c. both a and b.
d. neither a nor b.
a
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In order to achieve the maximum gains from trade, people should specialize according to
A) property rights. B) PPF. C) absolute advantage. D) comparative advantage.
If a country tries to maintain a fixed exchange rate, it must be
A. willing to print and sell its own currency to weaken it, if needed. B. a communist nation to accomplish it. C. willing to sell gold and hard currency to weaken its currency, if needed. D. willing to print and sell its own currency to strengthen it, if needed.
The Sherman Act of 1890
A. exempted labor unions from antitrust prosecution. B. included stringent enforcement provisions. C. outlawed unfair business practices to exclude rivals from selling in markets. D. outlawed all monopolies.
In the figure above, the length of the double sided arrow is the
A) consumer surplus. B) deadweight loss. C) producer surplus. D) economic loss per unit. E) economic profit.