Which of the following is NOT a solution to a principal-agent problem?
A) ownership
B) managerial hierarchy
C) incentive pay
D) long-term contracts
B
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Is the marginal benefit from the concert zero? Explain your answer
What will be an ideal response?
The saving-investment analysis for large open economies is somewhat more complicated than the analysis for small open economies mainly because ________
A) there is more information to keep track of for larger economies B) there are more unknowns in larger economies C) a larger economy may actually affect the world economy D) all of the above E) none of the above
Which of the following statements is correct?
a. A general, persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money. b. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits. c. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past. d. Expectations about the business cycle have no impact on stock prices.
Among the following examples, the one that best illustrates a public good is:
A. The laptops used by students in a college or university B. The movies produced by Hollywood companies C. The bike paths around a city or town D. The airline tickets bought by vacationers