A principal-agent problem occurs when
a. either a seller or buyer of labor is able to exercise a personal interest that undermines market efficiency
b. wage rates are greater than efficiency wages
c. wage rates are less than efficiency wages
d. agents representing professionals in a labor market exercise excessive negotiating power
e. agents representing professionals in a labor market are unable to represent their clients in a manner that generates maximum returns to the client
A
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An important difference between tariffs and quotas is that tariffs
A) raise the price of the good. B) generate tax revenue for the government. C) stimulate international trade. D) help domestic producers. E) are paid by foreign producers.
Which of the following will shift the Keynesian short-run aggregate supply curve downward and to the right?
A) a rise in the price level B) a fall in the price level C) a decrease in input costs D) an increase in input costs