If a principal and agent enter into a fixed-fee contract where the agent is paid a fixed wage
A) the principal bears all the risk.
B) the agent bears all the risk.
C) the principal and agent share the risk.
D) Unable to determine with the information given.
A
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Refer to Figure 3-1. An increase in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Any risk-averse individual would always
A) take a 10% chance at $100 rather than a sure $10. B) take a 50% chance at $4 and a 50% chance at $1 rather than a sure $1. C) take a sure $10 rather than a 10% chance at $100. D) take a sure $1 rather than a 50% chance at $4 and a 50% chance at losing $1. E) do C or D above.
The price elasticity of demand for a variable input will be more elastic in all the following cases EXCEPT
A) the greater the price elasticity of demand for the final product. B) the easier it is for a particular variable input to be substituted for by other inputs. C) the larger the proportion of total costs accounted for by a particular variable input. D) the shorter the time period being considered.
Which region in the New World received the largest share of slaves?
a. Brazil b. Colonial America c. Cuba d. Canada