Which of the Following Is Not an Example of a Principal

question 44

Multiple Choice

Which of the following is not an example of a principal trying to solve the moral-hazard problem? The principal

• A)calls the agent's references.
• B)installs hidden cameras to monitor the agent's behavior.
• C)pays the agent efficiency wages.
• D)pays the agent a year-end bonus.

---

Definitions:

Warehousing

The process of storing goods in a dedicated facility to ensure their availability for future distribution or sale.

Transportation Requirements

Specifications or conditions that need to be met for the movement of goods or people, including mode of transport, capacity, timing, and infrastructure needs.

Graphic Device

Hardware used to create, display, or manage visual content, such as a graphics card in a computer.

Uncertainty

The state of being unsure about the outcome of an event or the veracity of a fact.