Author Question: Under which of the following circumstances is the principal-agent problem likely to be most serious. ... (Read 43 times)

K@ · **on:** Jul 1, 2018

Under which of the following circumstances is the principal-agent problem likely to be most serious.
a. Between general practitioners and patients.
b. Between surgeons and patients.
c. Between hospitals and nurses.
d. Between dentists and physicians.
e. Between physicians and lawyers.

Question 2

A fall in interest rates leads to:
a. an increase in the rental rate on a machine.
b. a decrease in the rental rate on a machine.
c. no change in the rental rate on a machine.
d. a fall in the marginal productivity of capital.