Which of the following is a solution to the principal-agent problem?
A) threaten to liquidate the firm
B) link top manager salaries to the profits of the firm or the price of the firm's stock
C) have the CEO be a rotating position
D) forbid managers from owning any company stock
Answer: B
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Means-tested income transfers refer to
a. the average amount of the annual governmental transfers. b. transfers that are limited to families with an income below a certain cutoff point. c. income transfers that are specifically paid for by the top 1 percent (wealthiest) of tax payers. d. none of the above.
In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The employment-to-population ratio is
A) 60 percent. B) 66.7 percent. C) 73.3 percent. D) 53.3 percent. E) none of the above.
Given a linear demand function of the form QXd = 100 - 0.5PX, find the inverse linear demand function.
A. PX = 200 - 2QX. B. PX = 100 - 0.5QX. C. PX = 100QX - 0.5PX. D. PX = 100 - 2QX.
China is a clear example of a country that has:
A. achieved economic growth only after a democratic regime was in place. B. achieved economic growth without a democratic regime. C. failed to achieve economic growth without a democratic regime. D. failed to achieve economic growth, despite having a democratic regime.