A principal-agent problem occurs when hiring workers to work for a firm because
A) workers' interests are not always the same as the interests of the owners of the firm.
B) workers do not respond to incentives.
C) the owners of a firm are always in a position to exploit the workers.
D) workers' interests are not important in the managerial decisions of the firm.
A
Economics
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An increase in the price of MP3 players will result in
A) a smaller quantity of MP3 players supplied. B) a larger quantity of MP3 players supplied. C) a decrease in the demand for MP3 players. D) an increase in the supply of MP3 players.
Economics
A common criticism of central banks in developing nations led by despotic dictatorships is that they lack
A. independence of political influence. B. corruption. C. an understanding of economics. D. control by political parties.
Economics