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:

Persuasive Arguments

Arguments designed to convince or influence others to accept a specific viewpoint or course of action.

Persuasive Communication

The skill of using messages designed to influence or change others' attitudes, beliefs, or actions towards a particular idea, item, or behavior.

Common Mistake

An error that is frequently made by a wide range of individuals, often due to misunderstanding or lack of knowledge.

Pressuring

Refers to the act of attempting to influence or compel someone into a decision or action by using force, arguments, or persuasion.