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
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.
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
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
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