The relationship between the public and the government can be viewed as a special kind of ____________________,because the president works for all the people because they have hired him or her through their ballots and can fire the president at the next election.

Question

Quizplus · Accepted Answer

The principal-agent problem arises when a principal (in this case, the public) hires an agent (the president) to act on their behalf but has limited information and control over the agent's actions. This creates a potential conflict of interest between the principal and the agent, as the agent may act in their own self-interest rather than the principal's interest. The fact that the president can be fired at the next election by the public reinforces this principal-agent relationship.

The Relationship Between the Public and the Government Can Be