Which of the Following Is Not an Example of a Principal

question 139

Multiple Choice

Which of the following is not an example of a principal trying to solve the moral-hazard problem?

• A) the principal conducts an extensive interview of the agent
• B) the principal installs hidden cameras to monitor the agent's behavior
• C) the principal pays the agent efficiency wages
• D) the principal pays the agent a year-end bonus

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Definitions:

Aristocracy

A form of government in which power is held by the noble class or elite members of society, often inherited.

Logical Reasoning

The process of using a structured, systematic approach to arrive at conclusions or solve problems based on given premises or facts.

Spearman's "g" Factor

A theory proposing a single, overarching intelligence factor that accounts for individual abilities in various cognitive tasks, representing general cognitive capability.

Specialized Intellectual Abilities

Unique or distinct cognitive capabilities that are more developed in some individuals than others, allowing for exceptional performance in certain tasks or fields.