The threat of a corporate takeover is an ________ incentive that helps to mitigate the ________ principal-agent problem.
A. internal; manager-consumer
B. external; owner-consumer
C. external; owner-manager
D. internal; manager-worker
Answer: B
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The 2010 Patient Protection and Affordable Care Act (Obamacare) contains a provision that may require individuals to either purchase private health insurance or pay a tax. This is an example of
A) a mixed economy. B) market capitalism. C) centrally planned socialism. D) the invisible hand.
A state of consumer equilibrium for two goods consumed exists when the:
a. marginal utility of all goods is the same for the last dollar spent on each good. b. marginal utility per dollar's worth of two goods is the same for the last dollar spent on each good. c. price of two goods is the same for the last dollar spent on each good. d. marginal cost per dollar spent on two goods is the same.