A bureaucracy can be thought of as the agent in a principal-agent, with __________ as the principal.

Question

Quizplus · Accepted Answer

In a principal-agent relationship, the principal is the entity that delegates power to the agent to act on their behalf. In this case, the bureaucracy (the agent) is tasked with carrying out the policies and directives of the government, which is composed of the president and Congress (the principal). Therefore, B is the best choice as the president and Congress are the principal in this relationship.

A Bureaucracy Can Be Thought of as the Agent in a Principal-Agent