What term describes situations in which aspects of the productive environment that are important to the principal cannot be observed?
A)Unobservable action
B)Hidden action
C)Covert information
D)Unobservable information
E)Hidden information

Question

Quizplus · Accepted Answer

Hidden information refers to situations where aspects of the productive environment that are important to the principal cannot be observed.

What Term Describes Situations in Which Aspects of the Productive