The general monitoring problem implies that:
A. government must intervene to protect national goals.
B. competition will ensure common goals among the owners and managers of a firm.
C. profit maximization should always be a firm's goal.
D. there is a cost of supervising employees so that they work toward the owner's goals rather than their own.
Answer: D
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One problem with constructing a perfectly complete realistic economic model is that
A) it would be too simplistic to have any value. B) it would be far too complicated to analyze. C) politicians see little value in such a model. D) None of the above is true.
In the market for euros, the demand for euros (€) is
A) downward sloping, because at lower dollar prices for the euro, U.S. residents will buy more European goods and services. B) upward sloping, because at higher dollar prices for the euro, U.S. residents will buy more European goods and services. C) upward sloping, because at higher dollar prices for the euro, Europeans will buy more U.S. goods and services. D) horizontal, because dollar prices of euros and euro prices of dollars are directly related.