The common factors that give rise to all principal-agent problems include the
a. unobservability of some manager-agent action
b. presence of random disturbances in team production
c. the greater number of agents relative to the number of principals
d. a and b only
e. none of the above
d
Economics
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GDP can be measured in terms of expenditures but not income, since income is subject to taxation
a. True b. False Indicate whether the statement is true or false
Economics
If, in an economy, a $200 billion increase in consumption spending creates $200 billion of new income in the first round of the multiplier process and $150 billion in the second round, the multiplier and the marginal propensity to consume will be, respectively:
a. 4.00 and 0.75 b. 2.50 and 0.40 c. 3.33 and 0.70 d. 5.00 and 0.80
Economics