Your Instructor Has Organized the Class into Groups of Three

question 36

Multiple Choice

Your instructor has organized the class into groups of three students each and assigned each group a research project on different aspects of the workings of Congress.Regardless of the individual contributions of each group member,all three students of each group will receive the same grade based on the quality of the project.After numerous attempts to organize the group to work on the project,you realize the third student in your group will not participate.Instead,you and the second student get together to finish the project since both of you are very concerned about your final grade in the class.However,you are both angry that the third student is going to benefit from your hard work without contributing.Had the instructor told each group that each student's grade on the project would be based on their individual contributions,which problem would the instructor have avoided?

• A)a delegation problem
• B)an empirical problem
• C)a collective action problem
• D)a free-rider problem
• E)a principal-agent problem

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Definitions:

Withdraw The Offer

The act of revoking or cancelling a proposal or bid that had previously been made.

Present Obligation

A current duty or responsibility that an entity has as a result of past events, which will likely require an outflow of resources.

Restructuring

The process of organizing a company or its operations differently to increase efficiency or improve profitability, often involving changes in business model, operations, or staff.

Historical Pattern

Trends or sequences in data that have been observed to repeat over historical periods, often used for forecasting and analysis.