$($a$)$ Identify a principal$-$agent situation you are in or have been in$.$ Perhaps you were the

principal, designing a contract for an employee or for one of your children. Perhaps you

were the agent, being subject to a contract designed by an employer or your parents. $($b$)$

Identify the issues that likely impact what should be considered in the design of the contract.

$($c$)$ Describe the actual contract, $($d$)$ Discuss the contract, explaining why you think the

contract was close to optimal, or why you think it was not optimal.