If a Principal and Agent Have an Efficient Contract, Then

question 77

Multiple Choice

If a principal and agent have an efficient contract, then

• A)one of them must be more risk-averse than the other.
• B)neither can be made better off without harming the other.
• C)they must have symmetric information.
• D)the principal bears more of the risk.

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Definitions:

George Simmel

A German sociologist, philosopher, and critic known for his analyses of modern urban life and the forms of social interaction.

Human Created Forms

Man-made constructs or artifacts that embody cultural, philosophical, or social values and ideas.

Realist Position

A viewpoint in social science that asserts the existence of a reality independent of our thoughts or perceptions.

Emile Durkheim

A founding figure in sociology, known for his studies on social cohesion and the collective aspects of society.