In the principal-agent relationship, the agent is
A) the owner of a resource that has hired another party to act on his behalf.
B) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner.
C) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party.
D) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
C
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Consider the country of Inland. In Inland, people's average tax rates decrease with the level of income. Inland has a ________ tax structure
A) progressive B) regressive C) proportional D) flat-rate
Suppose a budget line is drawn with X on the horizontal axis and Y on the vertical axis. A decrease in the price of X will cause:
a. an increase in the vertical intercept and no change in the horizontal intercept. b. a decrease in the vertical intercept and no change in the horizontal intercept. c. an increase in the horizontal intercept and no change in the vertical intercept. d. a decrease in the horizontal intercept and no change in the vertical intercept. e. a parallel, rightward shift of the budget line.