Actual Authority Give the Agent

question 351

Multiple Choice

Actual authority give the agent:

• A) no real authority
• B) the power and right to change the principal's legal status
• C) the power and right to make all decisions for the principal, even on matters where the agent does not have authority
• D) a 50% ownership share in all the principal's assets
• E) none of the other choices are correct

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Definitions:

Giffen Good

The hypothetical inferior good for which the income effect outweighs the substitution effect and the demand curve slopes upward.

Income Effect

The dynamics of income change in a person or an economy, and its role in altering the demand pattern for goods and services.

Substitution Effect

The change in consumption patterns due to a change in relative prices, prompting consumers to substitute a product that has become relatively cheaper for one that has become relatively more expensive.

Marginal Rate

A rate that indicates the change in a variable (such as cost, revenue, or tax) as its underlying factor changes incrementally.