Some corporate governance experts believe that serving on a company's board of directors for an extended length of time diminishes that member's independence from the company's CEO. If this is true, it would tend to
A) reduce the principal-agent problem.
B) increase the principal-agent problem.
C) have no impact on the company's performance, since the CEO is only one member of top management.
D) be in the best interest of shareholders.
B
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Rational ignorance says that voters will
A) understand the technology before voting on defense. B) vote on issues without having complete information. C) gather information on issues that are not important. D) not vote on issues that they do not understand.
The newest evidence on Head Start suggests that ________ participants are more likely to go to college later in life than equally-situated non-participants.
A. white B. all C. African-American D. Asian
The implicit cost of capital is:
a. the expense associated with leasing machines. b. the expense associated with buying machines. c. the opportunity cost of capital used by a business d. irrelevant for determining economic profit.
Consider the total cost of traveling from point A to point B
The cost of traveling by car would include the cost of gasoline and the opportunity cost of time; the cost of hopping on a bus would include the bus ticket and the opportunity cost of time. Assume that the bus ticket costs less than the gasoline. Does this imply that using a bus to get to the destination involves lower total costs than getting there by car? What if the bus doesn't take the fastest route from point A to point B?