Which of the Following Is an Example of the Monitoring

question 30

Multiple Choice

Which of the following is an example of the monitoring problem?

• A) Government fails to stop firms hiring child labor to produce goods.
• B) Two firms collude to set the market price, but the government cannot prove this conclusively.
• C) The managers of a firm maximize their own salaries to the detriment of maximizing profit for the owner of the firm.
• D) A firm does not take into account the air pollution caused by a coal factory when pricing its product.

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Definitions:

Fisk University

A historically black university in Nashville, Tennessee, known for its rich history and as the origin of the Fisk Jubilee Singers.

Black Spirituals

Religious songs created and first sung by African Americans, expressing their history, struggles, and hopes through deeply emotional and symbolic lyrics.

Philanthropic Associations

Organizations dedicated to promoting the welfare of others, typically through generous monetary donations to social causes.

Racial Equality

The principle and practice of fairness and justice that ensures individuals are treated equally, without discrimination on the basis of race.