Suppose the principal offers to share a percentage of the profit with the agent. Such a contract
A) will yield the same income for the agent as a hire contract would.
B) is incentive compatible.
C) creates a production inefficiency.
D) would not be acceptable to any agent.
B
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A gift from the British prime minister to the American president would be classified as a _____ in the balance of payments account
a. capital transfer b. capital receipt c. universal receipt d. unilateral transfer e. foreign aid
Which of the following shifts long-run aggregate supply right?
a. an increase in either technology or the human capital stock. b. an increase in human capital but not technology. c. an increase in technology, but not the human capital stock. d. neither an increase in technology nor the human capital stock.
Which of the following generates demand for foreign currencies?
A. Imports of foreign goods by firms located in the United States. B. The building of plants by foreign corporations in the United States. C. Exports from the United States to foreign countries. D. Foreign tourists traveling to the United States.
The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of:
A. communism. B. a market system. C. a command system. D. socialism.