Problem
1. What is the principal-agent problem as it relates to managers and stockholders? How did fi rms try to solve it in the 1990s? In what way did the "solution" backfire on some firms?
2. Identify and briefly describe the main economic functions of government. What function do you think is the most controversial? Explain why.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.