Jasime voluntarily quit her job and is now searching for a new position. Jasime is classified as a

The principal-agent problem in corporations exists because the managers of a firm

A) may pursue their own goals even when the result is lower profit for owners. B) may know how to operate the business better than absentee owners do, and yet not be allowed to. C) are generally unable to do the monitoring that would result in the firm's avoiding moral hazard problems. D) are generally unable to do the monitoring that would result in the firm's avoiding adverse selection. E) are generally unable to monitor workers, who do not care about the profits due the managers.

A person whose skills do not match available job openings is considered frictionally unemployed

a. True b. False Indicate whether the statement is true or false