The Principal-Agent Problem Refers to the Fact That the Agent's

question 8

Multiple Choice

The principal-agent problem refers to the fact that the agent's goals:

• A) do not always coincide with those of the principal.
• B) coincide with those of the principal.
• C) do not overlap with those of the principal.
• D) overlap with those of the principal.

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.