Copious Corp is owned by 2 million stockholders who elect a board of directors that selects a management team responsible for hiring workers to serve customers by selling and repairing computer mice. Which of the following statements is true?
a. In the principal-agent relationship between workers and customers, the customers are the agents.
b. In the principal-agent relationship between workers and managers, the managers are the agents.
c. In the principal-agent relationship between the stockholders and the board of directors, the stockholders are the agents.
d. In the principal-agent relationship between the stockholders and the customers, the stockholders are the agents.
e. In the principal-agent relationship between management and the board of directors, the managers are the agents.
Question 2
Labor productivity depends on the
a. quality of the labor
b. the effectiveness of government
c. the proportion of the labor force that is unionized
d. the size of the economy
e. All of the answers are correct
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