The general monitoring problem implies that:
A. government must intervene to protect national goals.
B. competition will ensure common goals among the owners and managers of a firm.
C. profit maximization should always be a firm's goal.
D. there is a cost of supervising employees so that they work toward the owner's goals rather than their own.
Answer: D
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A negative shock in aggregate demand will likely result in no permanent change in ________
A) output B) the equilibrium inflation rate if the central bank responds by lowering interest rates C) aggregate demand, if the central bank responds by lowering interest rates D) all of the above E) none of the above
The unemployment rate is equal to
a. the number unemployed divided by the labor force. b. the number unemployed divided by the population. c. the number unemployed divided by the number employed. d. the labor force divided by the population.
Exploiting a nonrenewable natural resource is likely to:
A. create more productive workers in all facets of the economy. B. lead to a sustainable high rate of growth in income for a country. C. lead to a higher level of income for a country. D. All of these are true.
The faster the drop in the purchasing power of money, the faster the
A. increase in the inflation rate. B. drop in the inflation rate. C. drop in the deflation rate. D. increase in the deflation rate.