The best contract a principal can make with an agent gives the agent all profit after paying the principal a fixed fee
Indicate whether the statement is true or false
F This contract is good for motivating the agent but it also forces the agent to bear risk, something the agent may not wish to do.
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Consider a firm in the short run. Average product is at its maximum when
A) average product equals marginal product and marginal product is falling. B) marginal product is maximized. C) the maximum quantity of the variable input is employed. D) diminishing returns cease to operate. E) total product is maximized.
The NBER's Business Cycle Dating Committee picks recession dates by looking at many variables, the four most important of which are industrial production, manufacturing and trade sales, nonfarm employment, and real personal income
These variables are known as A) leading indicators. B) coincident indicators. C) lagging indicators. D) recession indicators.