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 refers to the challenge of ensuring that an agent (in this case, the president) acts in the best interest of the principal (the public) who has hired them. The president is accountable to the public who elected him/her, and failure to act in their best interest could result in being "fired" at the next election. Therefore, this relationship can be viewed as a special kind of principal-agent problem.

The Relationship Between the Public and the Government Can Be