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:

Lax Enforcement

Lax enforcement refers to a situation where rules, laws, or regulations are not strictly applied or are inadequately followed by authorities.

Organized Crime

A category of transnational, national, or local groupings of highly centralized enterprises run by criminals who intend to engage in illegal activity, most commonly for profit.

Jazz

A music genre originating in the African-American communities of New Orleans, USA, in the late 19th and early 20th centuries, known for its distinctive rhythm, improvisation, and use of brass and woodwind instruments.

Art Form

A medium through which artists express their emotions, thoughts, or ideas, including painting, sculpture, music, dance, and more.