Which of the Following Practices Are, at Least in Part

question 162

Multiple Choice

Which of the following practices are, at least in part, attempts to reduce moral hazard problems?

• A) Cashiers at movie theaters are required to give customers tickets.
• B) An employer pays below equilibrium wages because he thinks his employees are not working as hard as they could be.
• C) Both A and B are correct.
• D) None of the above are correct.

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Definitions:

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Practices

Repeated or habitual actions, methods, or operations in a particular field or discipline.

Direct Statements

Clear and straightforward expressions that communicate an idea assertively and without ambiguity.

Motivational Factor

An element or circumstance that stimulates an individual’s enthusiasm, energy, or desire to undertake specific actions or persevere in a task.