Which of the Following Is Not a Common Response to the Moral

question 98

Multiple Choice

Which of the following is not a common response to the moral hazard problem that employers face?

• A) providing an on-site workout facility
• B) paying efficiency wages
• C) requiring employees to provide itemized receipts for reimbursable expenses
• D) paying year-end bonuses rather than higher monthly earnings

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Definitions:

Human Resources

The division of a business that deals with recruiting, hiring, training, and managing employees, focusing on policies and systems to maximize workforce efficiency.

Line Managers

Managers who are directly responsible for overseeing the performance of employees and the day-to-day operations of the business.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers.

Negotiations

The process of discussing something with the intention of reaching an agreement.