A typical reason moral hazard exists in the workplace is:
A)employees do not directly benefit from their effort,only their time spent at work.
B)employees get paid the same,whether they try really hard or not.
C)employees have no incentive to let the employer know how hard they can really work,because that might be expected of them all the time.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Moral hazard in the workplace arises when employees do not have direct incentives to exert effort, as they may receive the same compensation regardless of their performance, and they may avoid revealing their full potential to prevent increased expectations.

A Typical Reason Moral Hazard Exists in the Workplace Is