Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship? They:
A) pay employees with delayed compensation such as a year-end bonus
B) buy life insurance on their workers
C) pay above equilibrium wages
D) put hidden video cameras in the workplace
Correct Answer:
Verified
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A) the principal monitors
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Q25: Which of the following must be true
Q28: Which of the following is an example
Q316: Moral hazard occurs when
A)an employer closely monitors
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A)too few
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