Complying with Instructions or Orders from an Individual Who Is

question 69

Multiple Choice

Complying with instructions or orders from an individual who is in a position of authority is called

• A)mimicry.
• B)conformity.
• C)groupthink.
• D)obedience.

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Definitions:

Asymmetric Information

A situation where one party in a transaction has more or better information than the other, leading to an imbalance in power and potentially unfair outcomes.

Hidden Action

A situation in which an agent's actions are not fully observable by the principal, potentially leading to moral hazard.

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the consequences, often due to an asymmetry of information or a misalignment of incentives.

Imperfectly Monitored

A situation where there is insufficient oversight or observation, often leading to non-compliance or deviation from expected standards.