A potential problem arises in principal-agent relationships
a. because the agents' actions are not completely observed by the principals
b. because the principals' actions are not completely observed by the agents
c. because the agent's and the principals' actions are completely observed by each other
d. the observability of actions is irrelevant
a
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Under conditions of perfect competition, maximum profit or minimum loss occurs at the point where
a. AR = ATC. b. MR = AR. c. AR = MC. d. AVC = ATC.
In the short run, producers derive surplus from market exchange because
a. total revenue is greater than the minimum they would require to sell the good b. total revenue is equal to the minimum amount they would require to sell the good c. total revenue is less than the minimum amount they would require to sell the good d. marginal revenue equals average revenue e. they can rob consumers of most of their consumer surplus
If it's possible to eliminate the problems created by externalities, why do they persist?
A. It can be difficult to coordinate the millions of market participants. B. Creating a more efficient solution does not mean it will have a fair distribution of that surplus. C. They can be diffuse, complex, and hard to control. D. All of these statements are true.
The productivity growth rates of poorer countries tend to be ____ than those of richer countries
a. higher b. lower c. increasing slower d. decreasing faster