Rick Goes to Work 8 Hours Per Day, but While

question 28

Multiple Choice

Rick goes to work 8 hours per day, but while he is at work he spends most of his time visiting internet sites monitoring his fantasy football teams. This is an example of

• A) hidden characteristics.
• B) signaling.
• C) moral hazard and hidden action
• D) screening.

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Definitions:

Total Tax Collections

The aggregate amount of taxes collected by a government from various sources during a specified period.

Payroll Tax

Obligations imposed on both employers and employees, frequently measured as a segment of the payroll.

Equilibrium Wage Rate

The wage rate at which the quantity of labor demanded equals the quantity of labor supplied in the market.

Payroll Tax

A tax that an employer withholds and pays on behalf of its employees based on the wage or salary of the employee, typically used to fund social security and healthcare programs.