If the managers of a theater plan to raise ticket prices to increase ticket revenues, then they must believe that demand is

In a principal-agent problem, if the contract used leads to the maximum of the principal's and agent's combined value (profits, payoffs), we can say that this contract features

A) inefficiency in production, since only the principal's profits should be maximized. B) inefficiency in production, since only the agent's payoffs should be maximized. C) efficiency in production. D) inefficiency in production, since the agent's payoffs should be maximized and the principal's profits should be minimized.

Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?

a. Higher tax rates. b. A higher rate of investment. c. A smaller trade sector. d. Greater use of taxation to transfer income from the rich to the poor.