Tying salaries of top managers to the profits of the firm is a way to reduce the effect of the principal-agent problem

In a supply-and-demand graph, producer surplus can be pictured as the

A) vertical intercept of the supply curve. B) area between the demand curve and the supply curve to the left of equilibrium output. C) area under the supply curve to the left of equilibrium output. D) area under the demand curve to the left of equilibrium output. E) area between the equilibrium price line and the supply curve to the left of equilibrium output.

Devaluation of a domestic currency

a. is also called revaluation b. refers to an increase in a floating exchange rate c. refers to a decrease in a floating exchange rate d. refers to an increase in a fixed exchange rate e. refers to a decrease in a fixed exchange rate