If a Firm Hires Lazy Employees

question 70

Multiple Choice

If a firm hires lazy employees,

• A) it must pay them differently or hard-working employees will engage in moral hazard.
• B) it must pay them more or hard-working employees will engage in moral hazard.
• C) it must fire them before their laziness spreads to hard-working employees.
• D) the lazy employees make hard-working employees look good.

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