The Moral Hazard Associated with Managers Whose Productivity Is Difficult

question 3

Multiple Choice

The moral hazard associated with managers whose productivity is difficult to quantify can be decreased with

• A)piece-rate contracts.
• B)year-end bonuses.
• C)decreased wages.
• D)adverse selection.

---

Definitions:

Job Control Unionism

A labor relations strategy focused on the collective negotiation of work roles, conditions, and terms of employment by unions to protect workers’ interests.

Lack Of Flexibility

The inability or unwillingness to adapt to new conditions or circumstances, which can hinder progress and efficiency.

Production Processes

The methods, techniques, and sequences involved in manufacturing goods and services, from raw materials to finished products.

Business Unionism

A model of unionism focused on improving wages, benefits, and working conditions, rather than broader social or political change.