# Exam 1

Be able to state the three elements that are required for good causal theory
Click the card to flip 👆
1 / 49
Terms in this set (49)
Agents are the ones working for principals, trying to maximize return. While the principals rely on agents to attain a certain goal. Agendas of both roles don't always align. A definite problem for principals because it is costly to make sure agents are doing what you want them to. Agents can use resources given and information only they have to turn against the principal. There isn't a great tactic to know if the agents are telling the truth.
1. how the proposed US constitution
would limit "factionalism" and protect minority rights.
2. Article VI claiming that the majority rule of nation trumps the majority rule of the individual states, giving more rights to the minority. Because there are three branches of government, it makes it harder for one faction to take over all three.