Which of the Following Is Not a Method Firms Use

question 46

Multiple Choice

Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship? They:

• A) pay employees with delayed compensation such as a year-end bonus
• B) buy life insurance on their workers
• C) pay above equilibrium wages
• D) put hidden video cameras in the workplace

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Definitions:

Psychologist's

Pertaining to psychologists, who are professionals specializing in diagnosing and treating mental and emotional disorders.

Major Types

Broad categories or classifications within any given subject or system based on common characteristics.

Life Changes

Significant alterations in one’s personal or professional life, such as marriage, career shifts, or moving to a new city, that can impact one's lifestyle or perspective.

Life Change

A significant shift in one's circumstances, habits, or outlook, typically leading to personal growth or a new direction in life.