Moral Hazard Can Be Avoided By

question 36

Multiple Choice

Moral hazard can be avoided by:

• A)employers monitoring employee effort.
• B)removing the asymmetric information.
• C)employers incentivizing employees to maintain consistent effort.
• D)All of these statements are true.

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Definitions:

Inside Elements

Fundamental or essential components that exist or operate within a particular system or context.

Structural Functionalism

A sociological perspective that views society as a complex system whose parts work together to maintain stability and social order.

Structures of Society

The complex framework of social institutions, organizations, norms, and values that shape social interactions and the functioning of a society.

Anomie

A condition of society in which there is a breakdown of social norms and values, leading to a state of normlessness.