Author Question: A principal-agent problem occurs when hiring workers to work for a firm because A) workers' ... (Read 101 times)

Capo · **on:** Jun 29, 2018

A principal-agent problem occurs when hiring workers to work for a firm because

A) workers' interests are not always the same as the interests of the owners of the firm.
B) workers do not respond to incentives.
C) the owners of a firm are always in a position to exploit the workers.
D) workers' interests are not important in the managerial decisions of the firm.

Question 2

Economic growth can be represented by

A) a movement down the production possibilities frontier (PPF).
B) a movement up the production possibilities frontier (PPF).
C) an inward shift of the production possibilities frontier (PPF).
D) an outward shift of the production possibilities frontier (PPF).