The principal-agent problem:
A. is when the principal has more information than the agent.
B. is when the agent is tempted to put in more effort than the principal would like.
C. is commonly seen in the employer-employee relationship.
D. is when the principal and agent have the same objectives.
C. is commonly seen in the employer-employee relationship.
You might also like to view...
An electrician quits her current job, which pays $40,000 per year. She can take a job with another firm for $45,000 per year or work for herself. The opportunity cost of working for herself is
A) $5,000. B) $40,000. C) $45,000. D) $85,000.
By 2012, what share of U.S. assets were held by the 10 largest banks in the United States?
A) 10% B) 29% C) 55% D) 68%
Julie always purchases the soda with the lowest price. For Julie, the cross price elasticity of demand for brand X and brand Y will be
A) equal to 0. B) negative. C) positive. D) impossible to determine without more information.
Most economists believe that classical macroeconomic theory is a good description of the economy
a. in neither the short nor long run. b. in the short run and in the long run. c. in the short run, but not in the long run. d. in the long run, but not in the short run.