The United States has been willing to trade-off greater efficiency for greater wage equality.

The name economists give the process by which stockholders gather information by frequent monitoring of the firm's activities is

A) costly state verification. B) the free-rider problem. C) costly avoidance. D) debt intermediation.

Refer to the diagram. Flow 4 represents:

A. wage, rent, interest, and profit income.
B. land, labor, capital, and entrepreneurial ability.
C. goods and services.
D. consumer expenditures.