Monday, November 14, 2016


In the blog posts for this week a significant fraction of the class confounded principle (note the ple spelling at the end) for principal (with the pal spelling at the end).  These are different words with different meanings.

Principle - is an idea or rule.  A basic principle of economics is that the market price adjusts according to supply and demand.

Principal - the way we are using it is a person.  You probably first encountered the word in school.  The top administrator of a school is the principal.  In our setting the principal is the person who hires the agent and who pays the agent for services rendered according to a predetermined agreement.

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