Principal-agent problems are less likely to arise
a. if it is easy for principals to know agents' actions and if there is less conflict between their goals
b. if it is difficult for principals to know agents' actions and if there is less conflict between their goals
c. if it is easy for principals to know agents' actions and if there is some difference in their goals
d. if it is difficult for principals to know agents' actions and if there is some difference in their goals
e. if agents have higher incomes
A
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Use the above table. The MPC is
A) 0.09. B) 0.20. C) 0.80. D) 0.91.
In the beauty contest where players predict the outcome of players choosing a number between 0 and 100
A) the Nash equilibrium is 0. B) your prediction should be based on what you think the winning number will be. C) the Nash equilibrium is 33. D) there is no Nash equilibrium because people are not rational.
Which of the following is not an argument made by those who oppose reforming the tax laws to encourage saving?
a. A public budget surplus can raise national saving. b. The substitution effect of a higher return to saving may be about equal to the income effect of a higher return to saving. c. Low-income households save a larger fraction of their income than high-income households. d. Tax cuts might cause a budget deficit.
Barbara Ehrenreich and Beth Schulman both described jobs in the ________ labor market.
Fill in the blank(s) with the appropriate word(s).