The Problem of How a Manager Can Incentivize a Worker

question 96

Multiple Choice

The problem of how a manager can incentivize a worker to work in the interest of the manager is an example of:

• A) the principal-agent problem.
• B) adverse selection.
• C) moral hazard.
• D) information asymmetry.

---

Definitions:

Average Grade

The middle value of grades assigned in academic performance, calculated by averaging the grades of all subjects or courses taken.

Test Average

The mean score obtained by an individual or group on a series of examinations or tests.

Average Variable Cost

The variable cost per unit of output.

Average Variable Cost

The variable costs associated with production, when divided by the number of units produced, indicate the cost per unit.