The principal-agent problem arises in corporations because the interests of the owners or stockholders are aligned with the chief executives who run the corporations for the owners.
Answer the following statement true (T) or false (F)
False
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A decrease in demand would be represented by
A) the price of a good going from $3 to $4. B) an increase in the cost of resources used to produce the good. C) a movement along the demand curve. D) a shift of the demand curve to the left.
Which of the following could reduce economic efficiency?
a. laws that encourage lawsuits b. policies that redistribute income c. policies that impose significant restrictions on international trade d. All of the above are correct
Economic benefits to nations in a currency union will be larger whenever:
A) the volume of transactions between the nations is larger and there is a greater degree of economic integration. B) the volume of transactions is smaller but there is a greater degree of economic integration. C) trade and financial flows between the nations are erratic. D) financial integration is lower but cultural integration is higher.
If the MPC is .8, the multiplier is
A. .2. B. .8. C. 1. D. 5.