Providing stock options to corporate managers was an idea designed to:
A. hide increases in pay of corporate executives from stockholders.
B. align managers' interest with the stockholders' interest.
C. treat the free-rider problem.
D. treat adverse selection.
Answer: B
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As the dollar exchange rate, e, decreases, the quantity of dollars supplied in the foreign exchange market ________, and the quantity of dollars demanded in the foreign exchange market ________.
A. decreases; decreases B. increases; increases C. decreases; increases D. increases; decreases
From the economic point of view, why might a retired couple spend four hours a day on the golf course when they could have spent their time becoming better informed about their elected representative in Congress?
A) They are going to die soon so it really doesn't matter. B) They must love golf and hate politics. C) The congressperson must have wronged them. D) They consider golfing a more productive use of their time.
One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is
A. people substitute between goods. B. things produced by people under 18 are not counted. C. quality has remained steady. D. the underground economy (unreported and illegal income and sales) is not counted.
Assume that the demand for film cameras decreases in a competitive market. What will most likely happen to the equilibrium price and quantity of film cameras?
a. Price will decrease; quantity will increase b. Price will decrease; quantity will decrease c. Price will increase; quantity will increase d. Price will increase; quantity will decrease