Subrat and James are customer service employees at National Digital Corp. In between calls, they spend time on TikTok and Instagram. The relaxed guidelines at National Digital allow them to do that. However, sometimes, they knowingly avoid answering calls or keep customers on hold, while they view content on their personal phones. Such behavior Multiple Choice is neither unlawful nor unethical; hence, Subrat and James cannot be reprimanded. typically exemplifies the agency problem of adverse selection. demonstrates the dangers of information asymmetry. can be stopped by implementing performance incentives and strict control mechanisms