Explain the principal–agent problem for representative democracy
Please provide the best answer for the statement.
In politics, the interest of the elected representatives or government officials (agents) may not be aligned with the interests of the voters or the general public (principals). Elected representatives or government officials may be more interested in their re-election or re-appointment than they are in representing the public interest. As a consequence, these government representatives or officials may take actions that support special interests so they can get re-elected or re-appointed rather than serving as the agents for good government.
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Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4)
What is Dustin's long-run average cost if the output is 3,000 copies per day? A) 3.7 cents per copy B) 5.0 cents per copy C) 8.5 cents per copy D) More information is needed to determine the long-run average cost.
European banks began with which of the following?
A. Monarchs were the first bankers, lending out cash to help the poor learn a craft. B. Churches were the first bankers, lending out cash to help the poor learn a craft. C. Goldsmiths were the first bankers, and the paper receipts they issued for gold held on deposit became valued as money. D. Fishermen were the first bankers, and the paper receipts they issued for the fish they stored in the hulls of their ships became valued as money.
When a paper producer pollutes the air, economists argue that there is
A) efficiency, if production is at its maximum level. B) a positive externality. C) an external cost. D) a cost paid solely by the firm.
Average variable cost and average total costs get closer together as output increases because
A. economies of scale become apparent. B. marginal costs decrease as output increases. C. average fixed costs decrease as output increases. D. diminishing returns set in.