A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem

For a firm, its labor costs are

A) a marginal benefit. B) a private cost. C) an external cost. D) Both answers A and C are correct. E) Both answers A and B are correct.

What do economists mean by the term "sticky wage"?

A. It refers to the reluctance by employers to increase nominal wages during an inflationary period. B. It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market. C. It refers to a breakdown in wage negotiations between employers and employee unions. D. It refers to a union negotiated wage.