Scenario 22-1 Esteban and Michaela Own an Apartment Building. They Hire Nico

question 444

Multiple Choice

Scenario 22-1
Esteban and Michaela own an apartment building. They hire Nico to manage the building and deal with tenants' complaints. They also hire Ted to make any necessary repairs to the apartments or the common area and they hire Rex to be the door guard at night.
-Refer to Scenario 22-1. Which of the following statements is correct?

• A)If Rex falls asleep while he is supposed to be guarding the door, he has created an adverse selection problem.
• B)Esteban and Michaela are the principals and Nico, Ted, and Rex are the agents.
• C)Nico is the principal and Ted and Rex are the agents.
• D)All of the above are correct.

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Definitions:

Peak-Level Bargaining

Collective bargaining that occurs at the top level of negotiations, involving senior representatives from unions and employers or governments.

Union Density Rate

The proportion of workers in a given sector or country who are members of unions, indicating the level of unionization.

Works Council

A works council is an institution representing workers and employees in a company or organization, facilitating dialogue between the workforce and management on issues affecting their interests and working conditions.

German Law

The system of rules that operate in Germany, including a significant body of labor and employment law that governs the relationship between employers and employees.