A key aspect of the principal-agent problem is that
A) the principal cannot perfectly monitor the agent's actions.
B) the principal can perfectly monitor the agent's actions.
C) the output level does not depend on the agent's actions.
D) the principal is always risk-averse.
A
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In European terms, when the exchange rate for the U.S. dollar increases:
a. the dollar has appreciated. b. the dollar has depreciated. c. the euro has appreciated. d. the dollar has weakened
"The nation needs to prevent foreign nations from selling their excess goods in our nation at a price below cost so we can save American firms." This quotation would be most closely associated with which protectionist argument?
A. Increase domestic employment B. Protection against dumping C. Strategic trade policy D. Cheap foreign labor