​​When a Principal Attempts to Get an Agent to Reveal

question 262

Multiple Choice

​​When a principal attempts to get an agent to reveal his or her private information, which of the following is occurring?

• A)​Screening
• B)​Signalling
• C)​Moral hazard
• D)​Adverse selection

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Definitions:

Future Goals

Objectives or targets that an individual or organization plans to achieve in a future time frame.

Planning

The process of creating strategies and setting objectives to guide an organization or individual toward achieving specific goals.

Directing

The managerial process of influencing people's behavior to achieve organizational goals.

Estimated Manufacturing Costs

The projected or forecasted costs associated with the production of goods, including estimates for materials, labor, and overhead before the actual production takes place.