There will be no principal-agent problem if a firm's owner (like a business consultant) does all the work of the firm.
a. true
b. false
Answer: a. true
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During the year a country's income was $6.0 trillion and its consumption was $5.5 trillion. At the start of the year its wealth was $30.0 trillion. The country's wealth at the end of the year was
A) $36.0 trillion. B) $35.5 trillion. C) $30.0 trillion. D) $6.0 trillion. E) $30.5 trillion.
An increase in the domestic real interest rate will tend to cause, other things the same ________
A) a depreciation of the domestic currency B) an increase in the demand for domestic goods and services C) an increase in demand for foreign currencies D) an appreciation of the domestic currency
Cyclical unemployment is caused by:
a. shifts in the structure of the economy. b. seasonal layoffs. c. declines in actual output below its full-employment level. d. the absence of job skills among the unemployed.
Which of the following is NOT a principal method of financing today?
A. bond B. reinvestment C. the entrepreneur's wealth D. common stock