A. a firm may realize excessively large profits. B. workers may provide less-than-expected work effort. C. compensating wage differences do not pay for differences in the nonmonetary aspects of jobs. D. human capital investments vary among
workers.
A. principals and agents share a common interest, leading to free-rider problems.
B. principals and agents are in an adversarial role, sharing no common interests.
C. principals pursue some of their own objectives, which may conflict with the objectives of
the agents.
D. agents pursue some of their own objectives, which may conflict with the objectives of the
principals.
Answer: D
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Which economist said, "This focus on distribution makes the significance of distributional issues (transfer issues) in political life relatively greater and the significance of widespread common interest in political life relatively smaller."?
A. John Maynard Keynes B. Milton Friedman C. David Friedman D. Mancur Olson E. David Ricardo
If the government wanted to offset the effect of a fall in consumer confidence on AD, it might: a. decrease government purchases. b. decrease taxes
c. increase taxes. d. do either a. or c.
The availability of substitutes makes the demand for a good less elastic
Indicate whether the statement is true or false
"Constant returns to scale" describes a situation where:
a. expanding all inputs does not change the average cost of production. b. a larger-scale firm can produce at a lower cost than a smaller-scale firm. c. expanding all inputs changes the average cost of production. d. the quantity of output rises and the average cost of production falls.