What do economists call the situation where a hired manager does not have the same interests as the owners of the business?

A) conquest and control
B) a financial problem
C) a principal-agent problem
D) a financial intermediary problem


Answer: C

Economics

You might also like to view...

When Kate and Sam use dollars to compare the market values of their automobiles, money is acting as a

A) unit of accounting. B) standard of deferred payment. C) store of value. D) medium of exchange.

Economics

If a firm faces an average total cost of $100 and sells its product for $115, how much profit does it make when it sells 20 units of the product?

A) $200 B) $115 C) $300 D) $800

Economics

What is the price of cars if this were a closed economy?

A. $10,000/car B. $6,000/car C. $8,000/car D. $14,000/car

Economics

Select the graph above that best shows the change in the market specified in the following situation: In the market for gasoline, when the price of oil, which is used to produce gasoline, increases because of reduced production by major oil-producing nations.

Graph A Graph B Graph C Graph D

Economics