The principal-agent problem in corporations arises from:
A. the view that workers are agents who are not considered to be the principal asset of the corporations for which they work.
B. the fact that the principal objective of most corporations is to make profits and not to contribute to charity.
C. a perspective that corporations are agents that represent the principal source of power for government and the national economy.
D. a conflict of interest between corporate executives who manage the firm and stockholders who own the firm.
Answer: D
You might also like to view...
In September 2005, destruction to U.S. gasoline refineries was caused by back-to-back storms along the U.S. Gulf Coast—Hurricane Katrina and Hurricane Rita
In one week, the average price of a gallon of gasoline in the United States increased by about 40 cents. Which of the following best explains why these events pushed up the price of gasoline? A) The demand curve for gasoline shifted to the left along the supply curve for gasoline. B) The supply curve for gasoline shifted to the left along the demand curve for gasoline. C) The demand curve for gasoline shifted to the right along the supply curve for gasoline. D) The supply curve for gasoline shifted to the right along the demand curve for gasoline.
In short-run equilibrium, the quantities supplied and demanded of Real GDP can be less than or greater than Natural Real GDP
Indicate whether the statement is true or false
The lack of a universal productivity effect of higher education was demonstrated by the experience of
A. the United Kingdom. B. Ireland. C. France. D. the Soviet Union.
The difference between the price a producer receives for a product and the minimum amount a producer is willing to accept for that product is:
A. the market demand for a product. B. consumer surplus. C. perfect competition surplus. D. producer surplus.