In a principal-agent problem, if the contract used leads to the maximum of the principal's and agent's combined value (profits, payoffs), we can say that this contract features
A) inefficiency in production, since only the principal's profits should be maximized.
B) inefficiency in production, since only the agent's payoffs should be maximized.
C) efficiency in production.
D) inefficiency in production, since the agent's payoffs should be maximized and the principal's profits should be minimized.
C
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Which of the following is TRUE of an oligopoly?
A) They engage in nonprice competition. B) They do not react to actions of their competitors. C) Each firm produces a small portion of the total output. D) Firms do not care what their competitors do.
In Table 17.4, Brazil has 
A. a comparative advantage in lumber but not an absolute advantage. B. an absolute advantage but not a comparative advantage in cars. C. an absolute and comparative advantage in both goods. D. an absolute and comparative advantage in lumber.
Describe at least three ways that global capital markets are different today from what they were like in the late 19th century
What will be an ideal response?
An increase in domestic output would cause a ________ in net exports and a ________ in the exchange rate.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall