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Narrative 22-1 Katie Owns a Boutique That Sells High-End Women's Clothing and Clothing

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Narrative 22-1
Katie owns a boutique that sells high-end women's clothing and accessories. Shana works part-time at the boutique and frequently is the only employee in this small store. Katie pays Shana a wage that is higher than the market wage for this type of job. When the store is not full of customers, Shana diligently works on displays and cleans to keep the store looking its best. Magda is a customer in the store who asks Shana's opinion on the quality of some jeans she is considering purchasing. Even though she's had several other customers return them due to flaws, Shana tells Magda the quality is great. Belinda is another customer who is returning a necklace without revealing that she lost a gem from it while wearing it.
-Refer to Narrative 22-1. Which of the ladies is causing a moral hazard problem?

Definitions:

Physically Challenging

Describes activities or tasks that require significant physical effort, endurance, or strength to accomplish.

Intrinsically Rewarding

Referring to an activity or object that is rewarding in itself, not because of any external rewards it may bring.

Fully Involved

A term often used in emergency services to describe a situation where a structure is fully engulfed in flames and fire.

Present Time

The current moment or period in which events are actually happening, often focused on in mindfulness practices.