The New Working Class

question 35

Multiple Choice

The new working class

• A) strongly encouraged its women or children work outside their homes.
• B) experienced comfortable living conditions.
• C) often worked twelve to sixteen hours a day, six days a week.
• D) displaced the middle classes as the coming political and economic class.
• E) were satisfied with the conditions as they existed.

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Definitions:

Asymmetric Information

A situation where one party in a transaction has more or superior information compared to another, often leading to an imbalance in the transaction.

Small Firms

Businesses often characterized by a small number of employees, limited market share, and possibly locally oriented markets.

Principal-Agent Problem

A situation in economics where there is a conflict of interest between a principal (such as a shareholder) and an agent of the principal (such as a manager), due to the agent having more information.

Golden Parachute

A substantial benefits package given to top executives if the company is taken over by another firm, and the executives are terminated as a result of the takeover.