One way to avoid the principal-agent problem would be to have:
A. the employee constantly monitor the employer's activities.
B. the employer constantly monitor the employee's efforts.
C. the employer share all management choices with employees before making decisions.
D. the employee sign a waiver of release.
B. the employer constantly monitor the employee's efforts.
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All of the following are stock market indexes except
A) the Dow Jones Industrial Average. B) the Russell 100 C) the Standard & Poor?s 500. D) the Wilshire 5000.
Exchange rates that are allowed to fluctuate in response to changes in supply and demand is known as
A) the foreign exchange markets. B) standard drawing rights. C) fixed exchange rates. D) flexible exchange rates.
When a game has multiple equilibria, a useful method to sort out which one would be the "best" prediction is to
a. find the one (if any) in which both players are better off than in any other equilibrium. b. find the equilibrium that is symmetric, if any. c. find the one which seems "focal", if any. d. all of the above.
The primary economic function of financial intermediaries is to help allocate scarce resources to desired uses.
Answer the following statement true (T) or false (F)