Which of the following would be an example of moral hazard?
A) An employee is hired to work 10 hours a day, but instead shirks work and leaves early.
B) A taxi driver takes a passenger on a longer-than-usual route hoping to generate a higher
C) A manager informs shareholders that the firm's profits may not be as high as expected due to an increase in costs
D) The owner of a firm monitors his employees through performance-linked pay and sales
Correct Answer:
Verified
Q1: Which of the following is true of
Q3: Under the piece-rate system, wages are paid
Q4: For performance contracts to be successful:
A) workers
Q5: Which of the following explains why diversification
Q6: Managers, and not owners, will seek to
Q7: Which of the following correctly describes moral
Q8: Moral hazard can be reduced at the
Q9: Pro?ts may decline when sales increase if:
A)
Q10: The senior manager at a firm sets
Q11: Which of the following is an example
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