In the principal-agent problem, the agent is:
A. a person who entrusts someone with a task.
B. a person who has the same objectives as the principal.
C. a person who carries out a task on someone else's behalf.
D. a person who is in charge of a top-secret mission.
Answer: C
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In the United States since 1970, how has the use of credit cards affected the demand for M1 as a percentage of GDP?
What will be an ideal response?
The founding document of the European Economic Community, and the document that continues to provide the basis for the European Union is the
A) Treaty of Brussels. B) Delors Report. C) Treaty of Rome. D) Single European Treaty. E) Maastricht Treaty.
Gross domestic product (GDP) figures tend to understate the quantity of goods and services available because: a. GDP excludes the value of goods produced at home
b. many items are counted twice or more in the intermediate stages of production. c. more women are entering the labor force. d. firms often add less to inventories than they planned to. e. exports are subtracted from GDP but imports are not added.
Production planning without the market mechanism is very efficiently handled by central planners
a. True b. False Indicate whether the statement is true or false