Which One of the Following Best Represents the Principal-Agent Problem

question 49

Multiple Choice

Which one of the following best represents the principal-agent problem in the employer-employee relationship?

• A)An employee works during a paid lunch hour in order to leave work one hour early
• B)An employer fails to provide safety goggles to a worker as required by occupational safety and health legislation
• C)a worker leaves work early without permission
• D)A worker opts for early retirement in response to the firm's incentive plan

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Definitions:

Susceptibility

The likelihood or predisposition of an individual or population to be affected by a disease or condition based on genetic or environmental factors.

Codominance

Condition in which two alleles of a locus are expressed in a heterozygote.

Incomplete Dominance

A genetic occurrence in which the trait exhibited by a heterozygous individual is a blend of the traits from both homozygous parents.

Epistasis

An interaction between genes in which the effect of one gene is modified or completely masked by another gene.