When a Principal-Agent Problem Occurs, the Agent Engages in Actions

Multiple Choice

When a principal-agent problem occurs, the agent engages in actions that

A) the principal can't observe, and they are not in the principal's best interest.
B) are impulsive rather than planned and that end up working against the agent's best interest.
C) are based on risk aversion rather than the principal's best interest.
D) result in lemons that harm the agent rather than the principal.