An Agent Acts for A(n) __________ Principal When the Agent

question 74

Multiple Choice

An agent acts for a(n) __________ principal when the agent appears to be acting on her own behalf and the third person with whom she is dealing has no knowledge that she is an agent.

• A) unidentified
• B) undisclosed
• C) unauthorized
• D) disclosed

---

Definitions:

Perfect Substitutes

Goods or services that can be used in exactly the same way, thus one can completely replace another in consumption.

Marginal Rate of Substitution

The speed at which a consumer is prepared to exchange one product for another while keeping their overall satisfaction constant.

Utility Maximizing

The process or behavior of consumers attempting to get the greatest amount of satisfaction from their consumption choices, subject to their income and the prices of goods and services.

Consumption Map

A graphical representation showing different combinations of goods or services that provide equal satisfaction or utility to a consumer.