Peter, a software engineer employed by Initech, sneaks into work late everyday and just sits at his desk spacing out for most of the week because he gets paid a fixed salary and has no incentive to work any harder.

This is most clearly an example of :

a. the duality problem

b. implicit costs

c. the law of diminishing marginal utility

d. shirking and the principle-agent problem

The correct answer is letter "D": shirking and the principle-agent problem.

Explanation:

The principle-agent problem arises when the interests of the principal (owners) do not match the interest of the agent (employee). Under this scenario, the principal hires an agent to perform certain duties on their behalf but those activities conflict the interests of the agent.

Therefore, Peter is shirking at work by not performing the duties he has been hired for simply by doing nothing which is also related to the principle-agent problem.

the page presents four different kinds of threats that volcanoes pose and what to do before, during, and after an eruption.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: