Spot checks are typically a solution to the:
A. manager-worker, principal-agent problem.
B. manager-consumer, principal-agent problem.
C. consumer-worker, principal-agent problem.
D. None of the statements is correct.
Answer: A
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One of the primary objectives of the WTO is:
a. to create trade restrictions across the countries. b. to reduce trade barriers created by the different countries. c. to enable certain countries to maintain their autarkic conditions. d. to enable the western countries to emerge as major players in the international trade. e. to redistribute wealth from the first world to the third world countries.
Which of the following would be considered to be the most liquid?
A. Checkable deposits B. Small time deposits C. Money market mutual funds D. Savings deposits
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
Given the information in this decision tree, if QRS-TV announces that it will air a reality show, it can expect to:
A. earn $10 million. B. lose $5 million. C. earn $20 million. D. earn $5 million.
Aggregate planned expenditure decreases if
A) exports increase. B) government expenditure on goods and services increases. C) autonomous consumption increases. D) real GDP decreases. E) investment increases.