What do economists call the situation where a hired manager does not have the same interests as the owners of the business?
A) a financial intermediary problem B) a principal-agent problem
C) conquest and control D) a financial problem
B
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U.S. residents come to believe that the dollar will depreciate in the future, that is, the exchange rate in the future will be lower than the current exchange rate. As a result
A) the demand curve for dollars shifts rightward. B) the demand curve for dollars shifts leftward. C) there is a movement upward along the demand curve for dollars. D) None of the above answers are correct.
Which of the following explains the shape of the short-run aggregate supply curve?
a. The inverse relationship between the quantity supplied and the cost per b. The direct relationship between the quantity supplied and the cost per unit c. The direct relationship between the quantity supplied and the price level d. The inverse relationship between quantity supplied and GDP e. The inverse relationship between quantity supplied and the profit per unit
Assume the central bank pursues contractionary monetary policy. What is the first round effect on the value of the domestic currency, if there is high mobility in the international capital markets?
a. The value of the currency rises. b. The value of the currency falls. c. The value of the currency is unaffected. d. The change in the value of the currency is ambiguous.
What type of economic system is the United States economy based on?
a. cause and effect b. centralized c. market d. production