Much of the outcry in the 2008 fight over a fat bailout for Wall Street focused on the size of Wall Street's fat paychecks
The real problem, according to corporate governance researchers, isn't the amount executives receive, it's how companies pay them. Most companies link compensation to quarterly performance, encouraging short-term gambles. One way to align pay with long-term incentives and discourage risky bets would be to stretch compensation over more years. What is a suggested solution to the principal-agent problem? A) employee ownership
B) employee incentive pay
C) employee long-term contracts
D) employee monitoring
C
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Select the phrase that correctly completes the following statement. "A positive change in technology caused an increase in the supply of flat-screen televisions. As a result ________."
A) the price of flat-screen televisions decreased. The lower price caused the supply of flat-screen televisions to decrease B) the equilibrium quantity of flat-screen televisions decreased C) the price of flat-screen televisions decreased and the demand for flat-screen televisions increased D) the price of flat-screen televisions decreased and the quantity demanded of flat-screen televisions increased
Which of the following about IS relation is not correct?
A) It is the the relation between interest rate and savings. B) It is the equilibrium condition for the goods market. C) It stands for "Investment equals saving." D) It shows what firms want to invest must be equal to what people and the government want to save.