​To Keep Employees from Shirking,invest in Greater Monitoring

question 43

Multiple Choice

​To keep employees from shirking,invest in greater monitoring

• A)​when monitoring is expensive relative to its benefits
• B)especially when monitoring is not very efficient
• C)when employees fail to respond to incentive contracts
• D)​when incentives solve both moral hazard and adverse selection problems with employees

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Definitions:

Stop Delivery

A directive by a seller to halt the transfer of goods to a buyer, typically due to a cancellation or alteration of the order or payment issues.

Entire Shipment

The complete set of goods or merchandise dispatched or sent out at one time from one sender to one destination.

Damaged Condition

A state in which goods or property are impaired in some way, reducing their value or functionality.

Reduction in Price

A decrease in the cost at which goods or services are sold, often to stimulate demand or respond to market conditions.