How Can Employers Try to Overcome the Moral Hazard Problem

question 57

Multiple Choice

How can employers try to overcome the moral hazard problem involving their employees

• A)by paying their employees more often
• B)by paying their employees minimum wage
• C)by better monitoring of their employees' work efforts
• D)by paying their employees in cash

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Definitions:

Reversal Design

A single case design in which the treatment is introduced after a baseline period and then withdrawn during a second baseline period. It may be extended by adding a second introduction of the treatment. Sometimes called a "withdrawal" design.

ABAB Design

A type of experimental design used in behavioral research, involving alternating periods of baseline measurements and intervention to assess the effects of treatment.

Multiple Baseline Design

An experimental design in which the effect of the intervention is demonstrated by showing that behaviors change only after the intervention is introduced, and this change is replicated across different contexts, times, or subjects.

Treatment

A condition or intervention applied to subjects in an experiment to investigate its effects.