When managers do not own very much of the net worth of the firm, then
A) there may be a principal-agent problem.
B) the firm will usually have to raise most of its funds in financial markets.
C) the firm will have to rely more on equity financing than debt financing.
D) the firm will have to rely more on debt financing than equity financing.
A
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What are the arguments in favor of the redistribution of income?
What will be an ideal response?
In the specific factor model, the effect of an increase in the productivity of labor in the production of food will cause a(an) ________ in the quantity of labor used to produce cloth, a(an) ________ in the quantity of labor used to produce food and
a(an) ________ in the wage rate. A) decrease; increase; increase B) increase; decrease; increase C) increase; decrease; decrease D) decrease; increase; no change E) increase; increase; no change
National output is a function of ________
A) capital and saving B) technology, employment and demand C) labor and depreciation D) labor, technology and capital
In a progressive income tax system,
A) the marginal tax rate exceeds the average tax rate. B) the average tax rate exceeds the marginal tax rate. C) high income earners pay a lower percentage of their income in taxes than do low income earners. D) the tax rate depends solely on how long an individual has been in the labor force.