Suppose a Firm Offers Its Workers a Cafeteria Plan in Which

question 15

Multiple Choice

Suppose a firm offers its workers a cafeteria plan in which it allows workers to allocate a set amount of fringe benefit money toward specific insurance. Mary, who has five kids needing braces, selects the family dental coverage. This is an example of the

• A)free-rider problem.
• B)principal-agent problem.
• C)adverse selection problem.
• D)moral hazard problem.

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Definitions:

Middle Managers

Individuals in an organization who manage at a level between the executive leaders and the operational staff, often overseeing specific departments or functions.

Competitive Strategy

A method developed by a company to gain a competitive edge and achieve superior profitability in its industry.

Performance Determinants

Various factors that contribute to the level of performance or productivity of an individual or organization.

Integrative Nursing

A holistic approach to patient care that incorporates both conventional and alternative therapeutic practices to treat the whole person.