ECON
MACROWSNotes5.pdf

MACROWSNotes5.pdf - 17 Award 1.00 point As it relates to...

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17. Award: 1.00 point 18. Award: 1.00 point As it relates to owners and managers, the principal-agent problem results from the separation of corporate ownership and control. double taxation of corporate profit. limited liability of corporate owners. differing interests of corporate stockholders and bondholders. References Multiple Choice Difficulty: 02 Medium Learning Objective: 05-02 Discuss government failure and explain why it happens. As it relates to the political process, the principal-agent problem results from the negative externalities that are created by some policy actions. political rules that encourage elected officials to engage in unethical and illegal behavior. inconsistency between voters' interest in programs and politicians' interest in reelection. paradox of voting. References Multiple Choice Difficulty: 02 Medium Learning Objective: 05-02 Discuss
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