Which of the Following Statements About Home-Based Work and Telecommuting

question 366

Multiple Choice

Which of the following statements about home-based work and telecommuting is most accurate?

• A)Although home-based work may become very popular in the future,only a small percentage of workers currently work at home on a regular basis.
• B)Telecommuting offers big advantages for many workers,but is likely to increase costs for employers significantly.
• C)Home-based work tends to increase the productivity of almost all workers,since people tend to be more productive when they are comfortable and can work flexible hours.
• D)Home-based work allows workers to choose their own hours and interrupt work for child care and other tasks,but this freedom and flexibility can create problems for some workers.

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Definitions:

Signaling

A solution to the problem of adverse selection that describes an informed party’s effort to communicate her type, risk, or value to less informed parties by her actions. A successful signal is one that bad types won’t mimic. Any successful signal can also be used as a screen.

Anticipate Adverse Selection

The practice of predicting and mitigating the likelihood of selecting undesirable risks due to information asymmetry.

Secure Neighborhood

An area or community designed or protected in a way that minimizes the risk of crime, providing a safe environment for its residents.

Insurance

A financial product sold by insurance companies to protect individuals and businesses against potential future losses in return for a premium.