In a moral hazard problem, the agent is unable to perfectly monitor the principal's behavior so the principal applies less effort than the agent considers desirable
a. True
b. False
Indicate whether the statement is true or false
False
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Based on historical data, which of the following tended to be most variable over time?
A) real investment spending B) the average propensity to consume C) real consumption spending D) real saving
According to Fred Bateman and Thomas Weiss, in terms of industrial capacity in 1860, value added in manufacturing was close to _____ in the North, and _____ in the South
a. $500 million; $500 million b. $750 million; $500 million c. $1 billion; $400 million d. $1.6 billion; $193 million
Economic profit always exceeds accounting profit
a. True b. False Indicate whether the statement is true or false
Wheat is being grown and sold at the lowest possible average cost. Which of the following does this situation illustrate?
a. Productive efficiency b. Market elasticity c. Allocative efficiency d. Perfect competition