--%>

Principal-Agent Problems instance

An instance of the principal-agent trouble would be:  (i) The student failing an exam since he did not study. (ii) The crook being caught as he made much noise. (iii) My son purchase baseball cards with the money I gave him to purchase milk for the family. (iv) Woman divorcing her husband as he doesn’t place the cap back on toothpaste.

Can someone please help me in finding out the accurate answer from the above options.

   Related Questions in Microeconomics

  • Q : Price elasticity of demand among

    The price elasticity of demand as in below illustrated figure for DVD games among prices of $20 and $30 is about: (w) 1.00. (x) 25. (y) 1/25. (z) 1/2.

    Q : Problem on opportunity cost of consumer

    Refer to the given table. If the economy is producing at production alternative C, the opportunity cost of the tenth unit of consumer goods will be:

  • Q : Define production function Production

    Production function: This refers to the functional relationship among inputs and outputs.

  • Q : Illustration of predatory behavior An

    An illustration of predatory behavior would be a firm: (w) building excess capacity to deter entry. (x) lowering price because of production cost decreases. (y) adopting a cost reducing technological innovation. (z) lowering prices to remove excessive

  • Q : Define break-even price Break-even

    Break-even price: This is the price at which firms form zero normal profit.

  • Q : Uy what is basic objects of bretton

    what is basic objects of bretton woods?

  • Q : Cruise ship pollution-an economic

    This exercise inspects why ‘greywater’ dumped from cruise ships can be vision as an economic difficulty and the complexities of dealing with this.

  • Q : Poverty by throughout lives Which of

    Which of the given statements is not correct? (w) Wealth is less equally distributed than income. (x) U.S. tax and transfer programs tend to make income more evenly distributed. (y) Some disincentives for work plague even the most efficient of proposed welfare reforms

  • Q : Value of commodities and services The

    The value of services and commodities is frequently decomposed into value in: (1) Dollars and value in Euros. (2) Absolute value and prices in relative prices. (3) House-holds and value in organizations. (4) Utilization and value in exchange.

  • Q : Supply of Labor-Income and Substitution

    I have a problem in economics on Supply of Labor: Income and Substitution Effects. Please help me in the following question. When the income effect of higher wage rate is more influential than the substitution effect, then: (1) The supply curve of labor is positively