In 2018, the House Oversight Committee investigated claims that Scott Pruitt, the Environmental Protection Agency Administrator, had spent federal money on foreign trips for personal pleasure, rented an apartment from a lobbyist at a discounted rate, and given unusual pay raises to his aides. This committee investigation is an example of which type of control to address the principal-agent problem?

Question

Quizplus · Accepted Answer

The House Oversight Committee investigation is an example of an after-the-fact control mechanism, which addresses the principal-agent problem by monitoring and investigating actions after they have occurred. This type of control seeks to identify and rectify any deviations from established standards or agreements, such as misusing federal money or giving unusual pay raises.

In 2018, the House Oversight Committee Investigated Claims That Scott