The problem the agent faces when deciding which agent to hire is called

The problem the agent faces when deciding which agent to hire is called
 a. Adverse selection
  b. Moral hazard
 c. Both of the above
  d. None of the above

QUESTION 2

In a situation where an artist is selling his own work to the galleries, the principle is
 a. The artist
 b. The gallery
 c. Both of the above
  d. None of the above

QUESTION 3

What's the firm's contribution margin?
 a. 12
  b. 10
  c. 8
  d. 4

QUESTION 4

If the cost of capital increased to 25, does the firm invest in the printer?
 a. Yes because the NPV>0
  b. Yes because the NPV=0
  c. Need information on the marginal benefits and costs
  d. No because the NPV<0

QUESTION 5

In a situation where an artist is selling his own work to the galleries, the agent is
 a. The artist
 b. The gallery
 c. Both of the above
  d. None of the above

QUESTION 6

If the interest rate is 10 then the net present value of these cash flows is
 a. 1041.32
  b. 541.32
  c. 1090.91
  d. 590.91