The function of the agent in the principal-agent relationship is
A) to be trusted with the principal's information.
B) to perform tasks for the principal.
C) to be the legal advisor of the principal.
D) to act as go-between for the principal's negotiations.
B
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The term fractional reserves refers to
A. The fact that reserves are split among many banks. B. The ratio of required reserves to total loans. C. The ratio of excess reserves to total loans. D. Reserves being a small fraction of total transactions account balances.
Refer to the above supply and demand graph. Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective. This supply and demand graph indicates that there is(are):
A. an overallocation of resources to the production of this product. B. a negative externality from the production of this product. C. spillover benefits to the production of this product. D. spillover costs to the production of this product.