Which of the following statements correctly identify who is the principal and who is the agent? O In a public limited company, the managers are the principals and the shareholders are the agents. In a contract between a football club and its star player, the club is the principal and the player is the agent. O In an Airbnb contract, the owner is always the agent and the traveller is always the principal. O In a democratic country, the Government is the principal and the voters are the agents.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Costs And The Supply Of Goods
Section: Chapter Questions
Problem 4CQ
icon
Related questions
Question

13

Which of the following statements correctly identify who is the principal and who is the agent?
O In a public limited company, the managers are the principals and the shareholders are the
agents.
In a contract between a football club and its star player, the club is the principal and the
player is the agent.
O In an Airbnb contract, the owner is always the agent and the traveller is always the principal.
O In a democratic country, the Government is the principal and the voters are the agents.
Transcribed Image Text:Which of the following statements correctly identify who is the principal and who is the agent? O In a public limited company, the managers are the principals and the shareholders are the agents. In a contract between a football club and its star player, the club is the principal and the player is the agent. O In an Airbnb contract, the owner is always the agent and the traveller is always the principal. O In a democratic country, the Government is the principal and the voters are the agents.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Current Account
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax