Question

Which of the following events from World War II is an extreme illustration of the Principal-Agent Problem?

O The invasion of Pearl Harbor

The loss of the U.S.S. Indianapolis
The dropping of the atomic bomb on Japan
O The Nazi establishment of concentration camps
Hitler's leadership of the Third Reich's war effort

Answer 1

Hitler's leadership of the Third Reich's war effort.

Step-by-step explanation:

By definition, a party (agent) agrees to work in favor of another (principle) in return for some incentive.