An Example of a Way Employers Can Minimize Moral Hazard

question 89

Multiple Choice

An example of a way employers can minimize moral hazard is to:

• A) monitor employees' computer activity.
• B) offer bonuses for consistent productivity.
• C) videotape the workplace.
• D) All of these are ways to minimize moral hazard.

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Supply

The total amount of a specific good or service that is available to consumers.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price over a given period of time.

Equilibrium Price

is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded.