The principal-agent problem refers to the fact that firms must
A) choose between economic efficiency and technological efficiency.
B) choose between a managerial and an incentive system.
C) devise incentives to get employees to work in the best interest of the firm's owners.
D) choose between operating as a partnership or corporation.
C
You might also like to view...
Adverse selection refers to the
A) use of statistical discrimination in making loans. B) possession of information by one party in a financial transaction not known by the other party. C) likelihood that a potential borrower may use the funds that he receives for unworthy, high risk projects. D) possibility that the borrower may engage in riskier behavior after the loan is obtained.
What is the relationship between marginal utility and an individual demand curve?
Tariffs raise the price of imported goods, but quotas rarely do
Indicate whether the statement is true or false
Keynes asserted that wealth was the most important determinant of consumer spending.
Answer the following statement true (T) or false (F)