Which of the Following Practices Would Indicate That an Employer

question 198

Multiple Choice

Which of the following practices would indicate that an employer is trying to overcome a moral-hazard problem with his employees?

• A) The employer pays his workers wages that are unusually high for the industry and region.
• B) The employer has voluntarily removed video cameras from the factory floor.
• C) The employer has discontinued the practice of giving his employees' year-end bonuses.
• D) Both A and B are correct.

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Definitions:

Quasi-Experiment

A research design that resembles an experimental design but does not include random assignment to conditions, making cause-and-effect deductions less stringent.

Lab Experiment

A research method where variables are controlled and manipulated in a laboratory setting to observe their effects on other variables.

External Validity

The extent to which research findings can be generalized or applied to other settings, populations, or time periods outside of the original study conditions.

Independent Variable

A variable that is manipulated or changed in an experiment to determine its effects on a dependent variable.