The principal-agent problem of ownership vs. control of the corporation arises when owners and managers
A) are the same people.
B) pursue objectives that differ from those their customers wish them to pursue.
C) pursue objectives that differ from those their workers wish them to pursue.
D) pursue objectives that differ from those the government wishes them to pursue.
E) pursue different objectives.
E
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A market exchange rate which has been adjusted for inflation is called a
A) nominal exchange rate. B) foreign market price index. C) real exchange rate. D) domestic exchange factor.
Which of the following statements about the short-run production function is true?
A) MP always equals AP at the maximum point of MP. B) MP always equals zero when TP is at its maximum point. C) TP starts to decline at the point of diminishing returns. D) When MP diminishes, AP is at its minimum point. E) None of the above is true.
The television network newscaster reports that the national inflation rate in the past year was equal to 4 percent. This report is most likely prepared from work done by a(n)
a. microeconomist b. normative economist c. macroeconomist d. econometrician e. social scientist rather than an economist
Refer to the above figure. The arrows show the direction of a shift in the demand curve of Good A. Which of the following would be the most likely reason for the shift in the demand curve if Good A is an inferior good?
A. an increase in consumers' income B. a decrease in the price of Good A C. an increase in the price of Good A D. a decrease in consumers' income