1. In the classic 1944 movie Double Indemnity, Barbara Stanwyck plays Phyllis Dietrichson, a woman who has devised a scheme with insurance agent Walter Neff, played by Fred MacMurray, to trick her husband into signing a life insurance policy and then kill him to collect the proceeds of the policy. In this scheme to murder her husband, Phyllis and her partner Walter took advantage of the husband when getting him to sign the life insurance policy, a situation which describes

a. rational ignorance

b.adverse selection

c. the principle agent problem

e. moral hazard

2. In the principal-agent relationship, the principle is

a. the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf

b.the owner of a resource that has hired a third party to act in the best interest of that third party

c. the person who is place in control over resource that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner.

d. the person who is place in control over resource that are not his own, with a contractual obligation to use these resources in the interests of some other party.

3.In the principal-agent relationship, what is agent?