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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

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Answer:

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

Explanation:

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

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