An Increase in Productivity in a Country Will Cause Its

question 22

Multiple Choice

An increase in productivity in a country will cause its currency to ________ because it can produce goods at a ________ price,everything else held constant.

• A)depreciate;lower
• B)appreciate;lower
• C)depreciate;higher
• D)appreciate;higher

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Definitions:

Principal-Agent Problem

(1) At a firm, a conflict of interest that occurs when agents (workers or managers) pursue their own objectives to the detriment of the principals’ (stockholders’) goals. (2) In public choice theory, a conflict of interest that arises when elected officials (who are the agents of the people) pursue policies that are in their own interests rather than policies that would be in the better interests of the public (the principals).

Profit Sharing Plans

A company program that gives employees a share in the profits of the company.

Principal-Agent Problem

A dilemma in which one party (the agent) is supposed to act in the best interest of another party (the principal) but may act in their own interest instead, leading to inefficiencies.

Pablo Picasso

A Spanish painter, sculptor, printmaker, ceramicist, and stage designer considered one of the greatest and most influential artists of the 20th century.