Please help economic theories and terminologies learned to analyze and explain the questions.

5. Explain what is meant by the principal-agent problem and relate it to shirking. What are the different pay incentive plans that correct for shirking on the job? How does profit sharing reduce shirking? What is the reason for efficient wages?

6. "The possibility for gains of trade is due to the fact that different countries face differentresources endowments, production costs, and geographical locations." Interpret andexpand with examples.