Which of the following statements regarding principal-agent relations is CORRECT?
A) Workers are principals for managers.
B) Stockholders are agents.
C) Managers are both principals and agents.
D) All of the above answers are correct.
C
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Sue just quit her job as a librarian to pursue her lifelong dream of getting a job as a teacher. Sue would be considered:
A. frictionally unemployed. B. structurally unemployed. C. seasonally unemployed. D. Sue is not in the labor force.
According to the market demand curve, what would consumers in this market most likely do if the price per pound decreased from $3 to $1?
a. They would decrease their purchases of coffee by about half the amount.
b. They would decrease their purchases of coffee by one third the amount.
c. They would increase their purchases of coffee by more than double the amount.
d. They would increase their purchases of coffee by less than double the amount.
Which statement is true?
A. Cost-push inflation may be summed up as "too many dollars chasing too few goods". B. Profit-push inflation is a variant of demand-pull inflation. C. Demand-pull inflation usually happens during wars. D. The wage-price spiral is the basic cause of demand-pull inflation.
Answer the following questions true (T) or false (F)
1. If average product is decreasing, then marginal product must be negative. 2. If a firm experiences diminishing returns its marginal product must be negative. 3. The additional output a firm produces by hiring one more worker is called the marginal product of labor.