Which contracting party gains from the use of a more sophisticated contract?

a. The principal, who offers the contract.
b. The agent, who accepts the contract.
c. Both parties may lose.
d. Both parties gain equally.


a

Economics

You might also like to view...

If the government increases expenditure by $40 billion and increases tax revenues by $40 billion, what is the impact on aggregate demand? Explain your answer

What will be an ideal response?

Economics

According to the text, a government policy of promoting competition must

A) assure small businesses they won't fail because of below-cost pricing or other predatory practices by larger businesses. B) assure small businesses they won't fail under any circumstances. C) equate profit margins among competing suppliers. D) maintain a process rather than some state of affairs. E) work toward making sellers' demand curves completely elastic.

Economics

One barrier to entry into a monopoly market is:

A. the ownership of a key resource or input. B. too many competitors already in the market. C. high input costs. D. few buyers.

Economics

The U.S. balance of trade has been in a large surplus since 2001

a. True b. False Indicate whether the statement is true or false

Economics