In Order to Reduce the Principal-Agent Problem,an Insurance Company Can

question 167

Multiple Choice

In order to reduce the principal-agent problem,an insurance company can

• A) give patients access to medical records,require doctors to justify tests,and pass reforms to medical malpractice laws.
• B) give patients only limited access to medical records,force doctors to justify tests,and pass reforms to medical malpractice laws.
• C) give patients access to medical records,allow doctors to determine which medical tests are appropriate,and pass reforms to medical malpractice laws.
• D) give patients access to medical records,require doctors to justify tests,and repeal medical malpractice laws.
• E) do nothing; there is no way to reduce the principal agent problem.

---

Definitions:

Sweatshops

Businesses that employ workers at very low wages for long hours in poor working conditions.

Executives

Senior-level employees responsible for making decisions and managing the operations within an organization.

Transnationals

Companies that operate on a global scale, transcending national boundaries in their business operations and strategic planning.

Culture Shock

A feeling of confusion, doubt, or nervousness arising from being placed in a new or significantly different cultural environment.