The problem that results from an agent, who is imperfectly monitored by the principal, engaging in dishonest or otherwise undesirable behavior is called

Imperfectly Monitored

A condition where the actions or performances are not fully observed or regulated, often leading to incomplete information or enforcement.

Agent

An agent in economics is an individual or entity that makes decisions impacting the allocation of resources or engagements in economic transactions.

Undesirable Behavior

Actions or patterns of action viewed as negative by society and often lead to social or legal penalties.