Directors can make opportunistic choices to advance their personal interest when:
a. they plan to sell off the corporation stocks at inflated prices.
b. they hold majority of the stocks in the corporation.
c. they are aware that the cost of forming a new board of directors is high.
d. their personal returns from the well being of the corporation is high.
C
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Which will cause a demand curve to be relatively elastic?
A. Purchases of the good require a small portion of consumers' budgets. B. The good is considered a necessity. C. The time interval considered is long. D. Few substitutes exist.
If the government increases unemployment benefits, then the equilibrium amount of employment ________ and potential GDP ________
A) increases; increases B) does not change; does not change C) increases; decreases D) decreases; decreases E) decreases; increases
Monetarists view government intervention in the economy as
A) necessary to maintain full employment. B) unnecessary and potentially damaging. C) effective because it stimulates capital formation. D) leads to consistently higher employment and output.
The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve. b. is only a problem in developing countries. c. will be solved as technology advances. d. will always be with us.