Which of the Following Is Not an Example of an Adverse

question 69

Multiple Choice

Which of the following is not an example of an adverse selection problem?

• A)A homeowner purchases a refrigerator that the seller knows has a history of leaking.
• B)A highly productive worker quits her job after a salary cut knowing that she can make more at a different job.
• C)A major league baseball player performs poorly in his second season after signing a multi-million dollar contract.
• D)A contractor uses low quality materials for construction but charges for higher quality materials.

Understand the differences and applications of various performance appraisal methods.

Recognize the importance of objectivity, feedback, and training needs in appraisal systems.

Grasp the concept and significance of appraisal validity and measurement consistency.

Identify techniques for improving employee performance through motivation and ability enhancement.

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Definitions:

Worker Interests

Worker interests encompass the economic, social, and professional needs and priorities of employees, including fair wages, safe working conditions, and job security.

Enterprise Contract

A contractual agreement between businesses, or between a business and an individual, that typically involves provision of goods or services.

Business Decision Making

The process by which business leaders and managers choose among alternative strategies or actions to achieve organizational goals.

Justice for Janitors

A social movement and union campaign initiated by the Service Employees International Union (SEIU) focused on improving wages, benefits, and working conditions for janitors through collective bargaining.