Which of the following forms of business organization is likely to suffer most from the principal agent problem between the owners and managers of the business?
A) proprietorships
B) partnerships
C) corporations
D) All are equally likely to suffer from the principal-agent problem.
C
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Nominal rates of protection
A) are always greater than effective rates of protection. B) are always smaller than effective rates of protection. C) refer to the tariffs placed on intermediate goods used to make the final good or service. D) cannot be negative.
Demand is based on:
a. desires, regardless of ability to pay. b. needs and wants, and the ability to pay. c. what supplies can provide. d. government calculations.
If a country exports more than it imports, then it has
a. positive net exports and positive net capital outflows. b. positive net exports and negative net capital outflows. c. negative net exports and positive net capital outflows. d. negative net exports and negative net capital outflows.
When the Fed buys U.S. government securities, the money supply
A. increases because there is an increase in transaction deposits at the bank of the bond dealer but there is no decrease in transaction deposits at any other bank. B. remains unchanged because the increase in transaction deposits at the bond dealer's bank is offset by a reduction in transaction deposits at the Fed. C. decreases because there is an increase in the reserves of the bond dealer's bank. D. remains unchanged because the increase in transaction deposits at the bond dealer's bank is offset by a fall in transaction deposits at another bank.