Question: this question is about principle agent problem as below QUESTION 5 (a) What are the sources of the principal-agent problem between voters and elected political
this question is about principle agent problem as below

QUESTION 5 (a) What are the sources of the principal-agent problem between voters and elected political representatives? (2 points) (b) What problems deter voters from solving the principal-agent problem with political representatives? What would a solution to the principal-agent problem require? (2 points) (c) Resolving the principal-agent problem between shareholders and management creates a principal-agent problem between shareholders and political decision makers. Why is this so? (2 points) (d) Why does political advertising introduce an anomaly into the principal-agent relationship between voters and politicians? (1 point) (e) What problems confront a principled political candidate? Why might it be difficult for political candidates to come to an agreement to set limits on campaign spending? Illustrate the principled politician's dilemma with a payoff matrix. (3 points)
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