As It Relates to the Political Process, the Principal-Agent Problem

question 2

Multiple Choice

As it relates to the political process, the principal-agent problem results from the

• A) negative externalities that are created by some policy actions.
• B) political rules that encourage elected officials to engage in unethical and illegal behavior.
• C) inconsistency between voters' interest in programs and politicians' interest in reelection.
• D) paradox of voting.

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (e.g., beliefs, attitudes).

Conflicting Cognitions

Refers to the situation when an individual holds two or more contradictory beliefs, ideas, or values, often leading to discomfort and the drive to reduce inconsistency.

Cohesion Levels

Describes the strength of bonds and unity among members within a group, affecting its functionality, performance, and sustainability.

Performance

The manner in which an individual or group executes a task or displays behavior.