The two "goods" used when economists analyze labor supply are

A principal-agent problem occurs when hiring workers to work for a firm because

A) workers' interests are not always the same as the interests of the owners of the firm. B) workers do not respond to incentives. C) the owners of a firm are always in a position to exploit the workers. D) workers' interests are not important in the managerial decisions of the firm.

Which of the following would cause an economy to produce at a point inside its production possibilities curve?

A) the efficient allocation of all factors of production B) population growth C) unemployment and an inefficient use of available resources D) capital accumulation