Production inefficiency is more likely to occur when the principal has more information about work performance than the agent does
Indicate whether the statement is true or false
False. It is when the agent has more information that production inefficiency is more likely to occur. The agent is able to shirk without being detected by the principal.
Economics
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Figure 10.3 United States Government Source of Funds and Outlays, Fiscal 2011
What will be an ideal response?
Economics
A Japanese bank buys U.S. government bonds, this purchase
a. increases U.S. net capital outflow and has no affect on Japanese net capital outflow. b. increases U.S. net capital outflow and increases Japanese net capital outflow. c. increases U.S. net capital outflow, but decreases Japanese net capital outflow. d. decreases U.S. net capital outflow, but increases Japanese net capital outflow.
Economics