Define the Principal-Agent Problem and Its Relevance for Understanding Interactions

question 33

Essay

Define the principal-agent problem and its relevance for understanding interactions among Congress, the president, and federal bureaucracies. Which institution or set of institutions usually acts as the principal, and which acts as the agent? What mechanisms and strategies are available to the principal to control the agent and minimize shirking?

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Definitions:

Calories

Units of energy used to measure the energy content in food, necessary for human life and activity.

Pull Strategy

A marketing approach that focuses on creating demand for a product or service, encouraging consumers to actively seek it out.