What Do Economists Call the Situation Where a Hired Manager

question 209

Multiple Choice

What do economists call the situation where a hired manager does not have the same interests as the owners of the business?

• A)conquest and control
• B)a financial problem
• C)a principal-agent problem
• D)a financial intermediary problem

Recognize the role and types of audits conducted by the IRS.

Understand the concepts of tax-exempt and tax-deferred income.

Comprehend the taxation of foreign earned income and its exceptions.

Analyze the impact of tax laws on personal financial planning.

---

Definitions:

James-Lange Theory

The theory that our experience of emotion is our awareness of our physiological responses to emotion-arousing stimuli.

Cannon-Bard Theory

The theory that an emotion-arousing stimulus simultaneously triggers (1) physiological responses and (2) the subjective experience of emotion.

Physiological Arousal

A state of physical alertness and activation that is often a response to a stimulus or emotional state.

William James

A pioneering American psychologist and philosopher known for his contributions to pragmatism and functionalism and as the father of American psychology.