This topic contains a solution. Click here to go to the answer

Author Question: In the principal-agent relationship, the principal is A) the person who is placed in control over ... (Read 114 times)

Jramos095

  • Hero Member
  • *****
  • Posts: 528
In the principal-agent relationship, the principal is
 
  A) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner.
  B) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
  C) the owner of a resource that has hired a third party to act in the best interest of that third party.
  D) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party.

Question 2

Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________.
 
  A) a comparative advantage; an absolute advantage
  B) an absolute advantage; an absolute advantage
  C) an absolute advantage; a comparative advantage
  D) a comparative advantage; a comparative advantage



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcarey591

  • Sr. Member
  • ****
  • Posts: 365
Answer to Question 1

B

Answer to Question 2

D





 

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

For a complete list of videos, visit our video library