Scenario: Edward Has Inherited a House

question 19

Multiple Choice

Scenario: Edward has inherited a house. As the house is far away from where he lives currently, it has been vacant for the past few years. A housekeeper is paid regularly to look after the house and keep it clean. However, because Edward seldom visits the house, the housekeeper does not clean the house regularly.
-Refer to the scenario above.Identify the correct statement in this case.

• A) Edward is a rent seeker.
• B) The housekeeper is a free rider.
• C) The problem can be solved through government intervention.
• D) The relationship between Edward and the housekeeper is an example of a principal-agent relationship.

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Definitions:

Alligators

Large, typically nocturnal, semiaquatic reptiles belonging to the family Alligatoridae, characterized by their broad snouts and powerful tails.

Kidneys

Bean-shaped organs in vertebrates responsible for filtering blood, removing waste products, and excreting urine.

Glomerular Filtration

The process by which the kidneys filter blood, removing excess wastes and fluids to form urine.

Urine Formation

The process by which kidneys filter blood, remove waste products and excess substances, and excrete them as urine.