Which of the following is an example of solving moral hazard by giving others a stake in the outcome?
A)Worker pay is based on productivity.
B)Video surveillance monitors worker actions.
C)Additional hiring screenings ensure that hard-working persons are hired.
D)Laws against theft and fraud reduce those problems in workplaces.

Question

Quizplus · Accepted Answer

By basing worker pay on productivity, the workers have a stake in the outcome of their work, as their pay is directly tied to their performance. This helps to reduce moral hazard by incentivizing workers to work harder and more efficiently.

Which of the Following Is an Example of Solving Moral