Why Does the "Dark Side" of Principal-Agent Relationships Exist

question 33

Multiple Choice

Why does the "dark side" of principal-agent relationships exist?

• A)Agents are often not rational.
• B)Institutions sometimes force principal-agent relationships "underground."
• C)Principals often force agents to do things against their will.
• D)The interests of the agent and the principal may not be well aligned.
• E)The principals usually do not know what they are doing.

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Definitions:

Hypnotized

A trance-like state resembling sleep, typically induced by a therapist by focusing a person's attention, that heightens their suggestibility, memory, and imagination.

Freudian Terms

Concepts and theories developed by Sigmund Freud that focus on the unconscious mind, psychosexual stages, and defense mechanisms among others.

Manifest Content

In psychoanalytic theory, the apparent, literal content of a dream, as opposed to the hidden or symbolic meaning (latent content).

Latent Content

In psychoanalytic theory, the underlying, hidden meaning of dreams as opposed to their manifest content, or the literal storyline of the dream.