Principal-agent problems are not addressed in the market for corporate control
Indicate whether the statement is true or false
False
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To find the economy's marginal benefit curve for a public good, you would
A) average the individual marginal benefit curves horizontally. B) average the individual marginal benefit curves vertically. C) sum the individual marginal benefit curves horizontally. D) sum the individual marginal benefit curves vertically.
The federal government debt equals
A) the accumulation of past budget deficits. B) tax revenues minus government spending. C) the total value of U.S. Treasury bonds outstanding. D) government spending minus tax revenues.
Holding everything else constant
A) if asset A's risk rises relative to that of alternative assets, the demand will increase for asset A. B) the more liquid is asset A, relative to alternative assets, the greater will be the demand for asset A. C) the lower the expected return to asset A relative to alternative assets, the greater will be the demand for asset A. D) if wealth increases, demand for asset A increases and demand for alternative assets decreases.
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country B decides to specialize in tomatoes, and Country A specializes in bananas. What terms of trade would both countries agree to? One tomato for:
A. one banana B. two bananas C. four bananas D. six bananas