Which of the Following Is Not an Example of a Principal

question 139

Multiple Choice

Which of the following is not an example of a principal trying to solve the moral-hazard problem?

• A) the principal conducts an extensive interview of the agent
• B) the principal installs hidden cameras to monitor the agent's behavior
• C) the principal pays the agent efficiency wages
• D) the principal pays the agent a year-end bonus

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Definitions:

Goal Shielding

The process of protecting one's focus on achieving a particular goal by resisting distractions and unrelated objectives.

Strict Diet

A rigorous and specific plan for eating, often for health or weight management purposes, that limits certain foods or nutrients.

High-stress

A condition or environment characterized by significant psychological pressure or strain, often resulting in physical or emotional health challenges.

Reactance

A provoked emotional response to offers, entities, principles, or regulations that compromise or revoke certain freedoms of conduct.