The CEO of Dynadyne corporation has been more concerned with enhancing his lifestyle by having the company pay for expensive corporate retreats than he has been with increasing the value of the company's stock
In this situation, the CEO is ________ and the stockholders are ________.
A) an agent; also agents B) the agent; the principals
C) a principal; also principals D) the principal; the agents
B
You might also like to view...
Two drawbacks in using fiscal policy as a stabilization tool are that fiscal policy can affect ________ as well as aggregate demand and that fiscal policy is ________.
A. consumption; offset by automatic stabilizers B. potential output; not flexible enough C. potential output; offset by automatic stabilizers D. consumption; too flexible
What are the two types of taxes that working individuals pay on their earnings?
A) individual income tax and social insurance taxes B) individual income tax and sales tax C) payroll tax and sales tax D) property tax and payroll tax
The production function
A. shows the relationship between input prices and amount of input used. B. always shows increasing marginal product of labor. C. shows the maximum level of output for a given set of inputs. D. is an economic relationship between revenue and cost.
Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550Suppose the government imposes a tax of $21 on each ton of smoke emitted. To minimize costs, Firm X will emit ________ tons; Firm Y will emit ________ tons, and Firm Z will emit ________ tons.
A. 1; 2; 4 B. 3; 4; 4 C. 1; 2; 3 D. 2; 3; 4