By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid
A) corporate governance.
B) conflict between the CFO and the CEO.
C) the principal-agent problem.
D) paying high salaries to their managers.
Answer: C
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As Americans have become more health conscious, rules about food labels have become more complex and stringent. This is an example of government acting as
A. referee. B. redistributor. C. taxer. D. defender.
If the price of housing (which accounts for 40 percent of total expenditures in the CPI basket), rises by 10 percent in one year while the prices of all other goods rises by 27 percent, by how much will the CPI rise?
A. 234 percent B. 10 percent C. 27 percent D. 20 percent
When firms analyze the relationship between their level of production and their costs, they separate the time period involved into
A) morning and evening. B) 6 months or less; 6 months to 1 year; more than 1 year. C) a fixed period and a variable period. D) the short run and the long run.
The behavior of the Federal Reserve concerning interest rates is called fiscal policy.
Answer the following statement true (T) or false (F)