The problem that arises when an agent does not complete a task in the way intended by the principal is called

Question

Quizplus · Accepted Answer

The principal-agent problem occurs when an agent (such as an employee) does not complete a task in a way that aligns with the goals of the principal (such as an employer or client). This can happen when the agent has different incentives or goals than the principal, resulting in a conflict of interest. The other answer choices (B through E) refer to different problems in economics, but they do not specifically involve the conflict of interest between a principal and agent.

The Problem That Arises When an Agent Does Not Complete