A problem associated with the principal-agent relationship is
A) imperfect information.
B) perfect information.
C) the low costs of monitoring behavior.
D) none of these choices.
A
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Non-paying activities in economics are referred to as:
A) relief. B) leisure. C) free time. D) unemployment.
If all firms expect greater demand for their products or services, they will hire _____ resources like labor and capital and the economy will experience _____
a. fewer; recession b. fewer; growth c. more; deflation d. more; recession e. more; growth
For the economy as a whole: a. income must equal expenditures
b. expenditures exceed income because of taxes. c. income exceeds expenditures because of saving. d. expenditures exceed income because of the government budget deficit.
If consumption is $6 billion, investment is $3 billion, government purchases are $1 billion, and GDP is $12 billion, then net exports must equal:
A. $12 billion. B. $2 billion. C. $22 billion. D. $10 billion.