Which One of the Following Best Exemplifies the Principal-Agent Problem

question 193

Multiple Choice

Which one of the following best exemplifies the principal-agent problem in the employer-employee relationship?

• A) A worker takes 20-minute coffee breaks although the employer allots only 15 minutes for this purpose.
• B) A worker is on the job 50 hours per week although only 40 hours are required for promotion.
• C) A worker opts for early retirement in response to the firm's incentive plan.
• D) A worker's productivity is independent of the wage paid.

---

Definitions:

Mindfulness Meditation

A meditation practice focusing on being intensely aware of what you're sensing and feeling in the moment, without interpretation or judgment.

Biofeedback

A method enabling people to enhance their health by managing typically automatic bodily functions, like their heart rate or blood pressure.

Life Expectancy

The average period that an individual is expected to live based on demographic factors like current age, gender, and health conditions.

Social Support

Refers to the physical and emotional comfort given to us by our family, friends, co-workers, and others. It's knowing that we are part of a community of people who love and care for us and value and think well of us.