As it relates to the political process, the principal-agent problem results from the A) negative externalities that are created by some policy actions. B) political rules that encourage elected officials to engage in unethical and illegal behavior. C) inconsistency between voters' interest in programs and politicians' interest in reelection. D) paradox of voting.

Question

26-05-2020
Social Studies

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As it relates to the political process, the principal-agent problem results from the A) negative externalities that are created by some policy actions. B) political rules that encourage elected officials to engage in unethical and illegal behavior. C) inconsistency between voters' interest in programs and politicians' interest in reelection. D) paradox of voting.

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berno berno · Answer 1 · 2020-05-30T07:16:33+02:00

Answer:

inconsistency between voters' interest in programs and politicians' interest in reelection

Explanation:

In a representative democracy, voters are principals, and politicians are agents.

According to the principal-agent problem, the agent can make decisions on behalf of the principal.

As it relates to the political process, the principal-agent problem results from the inconsistency between voters' interest in programs and politicians' interest in reelection