To Keep Employees from Shirking,you Can Invest in Greater Monitoring

question 14

Multiple Choice

To keep employees from shirking,you can invest in greater monitoring

• A)even though monitoring is expensive
• B)especially when monitoring is not very efficient
• C)when employees respond well to incentive contracts
• D)when incentives fail to solve either moral hazard and adverse selection problems with employees

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Definitions:

Common Carriers

Companies that provide transportation services to the general public under license or authority provided by a regulatory body.

Transportation Services

The sector or services involved in the movement of goods and individuals from one location to another.

Government Regulation

The imposition of laws and rules by a government to control or manage certain activities or industries for public welfare.

Gratuitous Bailment

Gratuitous bailment occurs when personal property is voluntarily transferred to another's custody without expectation of payment or benefit, purely for the benefit of one party.