Households and Firms in the U

question 85

Multiple Choice

Households and firms in the U.S.economy interact with those in the rest of the world in the ________ market and in the ________ market.

• A) goods; factor
• B) goods; financial
• C) government; goods
• D) financial; factor
• E) firm; government

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Definitions:

Agency Agreement

A legal contract creating a fiduciary relationship which empowers an agent to act on behalf of a principal in transactions.

Apparent Agency

A legal concept where a principal is liable for the acts of their agent, based on the appearance of authority the agent has been given, even if no actual authority was given.

Implied Agency

A form of agency relationship created by actions of the parties involved rather than a written agreement, suggesting one party can act on behalf of another.

Express Agency

An agency relationship created by an explicit written or oral agreement between the agent and the principal.