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What problem does the New Institutional Economics school suggest can arise when performance based measures are implemented (such as rewarding teachers for high test scores) to resolve the principal-agent problem?

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MCQs on major theories of economic development, placing them in a historical context.
 


What problem does the New Institutional Economics school suggest can arise when performance based measures are implemented (such as rewarding teachers for high test scores) to resolve the principal-agent problem?





 
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