The principal-agent problem is the issue of inducing
A) agents and principals to work hard.
B) principals to act in the best interests of agents.
C) agents to act in the best interests of principals.
D) None of the above answers is correct.
C
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The table above shows Tom's total utility from milkshakes and sodas. A soda costs $1.00. What is the marginal utility per dollar spent when the eighth soda is purchased?
A) 32 units per dollar B) 20 units per dollar C) 10 units per dollar D) 8 units per dollar
What is meant by the term Odious Debt"?
What will be an ideal response?
Which of the following societies is the most likely to have a traditional economy?
a. The United States. b. The Inuit (native people of Northern Canada). c. Cuba under Castro's rule. d. Modern-day Hong Kong.
When a motorist speeds down the road at well above the posted limit, economists believe that the principle of ____ may be directing his actions
a. rent seeking b. defective telescopic faculty c. moral hazard d. resource misallocation