If a principle is reducing agency costs by gathering information about the agent's type, he is most likely trying to solve the problem
a. Adverse selection
b. Moral hazard
c. Both of the above
d. None of the above
a
Economics
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A budget constraint is a straight line because:
A) the tastes and preferences of the consumer change along the constraint. B) a consumer faces a fixed price of both goods that do not change with changes in consumption. C) the opportunity cost of buying each of the goods changes along the constraint. D) a consumer has a limited money income.
Economics
What is the marginal productivity theory of income distribution?
What will be an ideal response?
Economics