• The correct answer is B.

Your roommate shirks her obligation to keep the apartment kitchen clean is an example of a principal-agent problem.

A principal-agent problem is considered a conflict in which the owner of particular assets differs in priorities with the agent to whom control of that asset is delegated. The principle-agent problem states that the agent acts contrary to the principal's wishes and wants. In this case, "you as the owner of the apartment" is the principal, and "your roommate" is the agent authorized to keep the apartment kitchen clean. The roommate does not adhere to the rules given or the authority given, and hence the principal is not happy because the agent has violated the rules. Also, in a principle-agent conflict, the agent is the only one who can correct the mistake done and end the conflict.

Choices C and D do not possess any specified agents despite them having the owners (principal). For example, in choice D, a corporate president uses his expense account to speculate in the commodities market. The corporate president is the owner of the expenses account (the principal in this case) and does not appoint any agent to help speculate in the commodities market. For choice C, a crab fishing boat owner catches too many crabs (over their quota) and sells the excess in the black market. The boat owner is the principal in this choice, but there is no specified agent because he sells the fish himself.