As it relates to corporations, the principal-agent problem is that:
A)the goals of the corporate managers (the agents) may not match the goals of the corporate owners (the principals).
B) it is costly for the corporate owners (the principals) to obtain a corporate charter from government (the agent).
C) the goals of the corporate managers (the principals) may not match the goals of the corporate owners (the agents).
D) the federal government (the agent) taxes both corporate profits and the dividends paid to stockholders (the principals).
A)the goals of the corporate managers (the agents) may not match the goals of the corporate owners (the principals).
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Economies of scale in information production are enjoyed by
A) small borrowers. B) small lenders. C) large borrowers. D) large lenders.
If a shortage exists in a market, then we know that the actual price is
a. above the equilibrium price, and quantity supplied is greater than quantity demanded. b. above the equilibrium price, and quantity demanded is greater than quantity supplied. c. below the equilibrium price, and quantity demanded is greater than quantity supplied. d. below the equilibrium price, and quantity supplied is greater than quantity demanded.
If the wage rate increases, there will be a
A. Movement up the labor supply curve to the right. B. Leftward shift of the labor supply curve. C. Movement down the labor supply curve to the left. D. Rightward shift of the labor supply curve.
GDP in an economy is $4,600 billion. Consumer expenditures are $3,500 billion, government purchases are $900 billion, and gross private domestic investment is $400 billion. Net exports are:
a. -$400 billion b. +$200 billion c. +$400 billion d. -$200 billion