Principal-Agent Problems Are Less Likely to Arise

question 187

Multiple Choice

Principal-agent problems are less likely to arise

• A)if it is easy for principals to know agents' actions and if there is less conflict between their goals
• B)if it is difficult for principals to know agents' actions and if there is less conflict between their goals
• C)if it is easy for principals to know agents' actions and if there is some difference in their goals
• D)if it is difficult for principals to know agents' actions and if there is some difference in their goals
• E)if agents have higher incomes

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Definitions:

Biological Perspective

An approach in psychology that examines psychological phenomena in terms of their biological underpinnings and evolutionary history.

Forbidden Desires

Wishes or impulses that are often repressed because they are socially unacceptable or deemed inappropriate.

Biological Perspective

An approach in psychology that examines psychological disorders and behaviors from a biological standpoint, including genetics and neurochemistry.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.