A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem.
Indicate whether the statement is true or false
Question 2
In the past two decades the United States lost its comparative advantage in automobiles to Japan. What factor was most responsible for the development of Japan's comparative advantage in automobiles?
A) Japan has abundant supplies of natural resources needed to produce automobiles.
B) Japanese firms benefited from external economies.
C) Japanese firms excelled in process technology.
D) Japan has abundant supplies of labor.
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