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The Principal-Agent Problem Is a Problem for the Private Sector

question 117

True/False

The principal-agent problem is a problem for the private sector but does not apply to political decision making.


Definitions:

Self-determination Theory

A psychological theory focused on motivation, which posits that people are driven to grow and change by three innate and universal psychological needs: autonomy, competence, and relatedness.

Universal Needs

Fundamental needs that are commonly considered essential for all humans, such as food, water, shelter, and safety.

Aesthetic Need

The human desire for beauty and visually pleasing experiences in their surroundings.

Sensation Seeker

A person who seeks out new and different sensations, experiences, and risks to achieve a heightened sense of excitement and adventure.

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