Employers Can Try to Overcome the Moral-Hazard Problem Involving Their

question 52

Multiple Choice

Employers can try to overcome the moral-hazard problem involving their employees by

• A)paying their employees more often.
• B)paying their employees below-equilibrium wages since the employees will likely shirk some of their responsibilities.
• C)better monitoring their employees' work efforts.
• D)requiring their employees to take a pre-employment work effort test.

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Definitions:

Pallor

An abnormal paleness of the skin, often indicative of anemia, shock, or serious illness.

Capillary Refill

A test to assess blood circulation where pressure is applied to a nail bed and the time is measured for color to return.

Cardiac Cycle

The complete sequence of events in the heart from the beginning of one heartbeat to the beginning of the next, including systole and diastole phases.

Diurnal Cycle

Refers to the cycle of day and night caused by Earth's rotation on its axis, affecting the biological rhythms of living organisms.