Solutions to the Moral Hazard Problem Include

question 19

Multiple Choice

Solutions to the moral hazard problem include

• A) high net worth.
• B) monitoring and enforcement of restrictive covenants.
• C) greater reliance on equity contracts and less on debt contracts.
• D) all of the above.
• E) only A and B of the above.

---

Definitions:

Strikes

A work stoppage caused by the mass refusal of employees to work, often used as a form of protest against employers' terms of employment.

Full-scale War

Full-scale war involves extensive military engagement between nations or large groups, utilizing the full capacity of available weapons and resources.

Union

An organization formed by workers in various sectors to protect and advance their rights, wages, and working conditions.

Closed Shop

A workplace where only members of a particular union are hired and where being a member of the union is a condition for employment.