Asked by
candy johnson
on Nov 26, 2024
Verified
The principal-agent problem in labor markets arises because of the possibility of shirking by workers.
Principal-agent Problem
A conflict of interest that arises when one party (the agent) is expected to act in the best interest of another (the principal) but has incentives to act in their own interest.
- Acknowledge the contribution of labor unions in shaping wage rates and labor market circumstances.
Verified Answer
CC
Learning Objectives
- Acknowledge the contribution of labor unions in shaping wage rates and labor market circumstances.
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