Employers Can Try to Overcome the Moral-Hazard Problem Involving Their

question 52

Multiple Choice

Employers can try to overcome the moral-hazard problem involving their employees by

• A)paying their employees more often.
• B)paying their employees below-equilibrium wages since the employees will likely shirk some of their responsibilities.
• C)better monitoring their employees' work efforts.
• D)requiring their employees to take a pre-employment work effort test.

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Definitions:

Safety Precaution

Measures taken in advance to prevent accidents or harm in potentially dangerous situations.

Upper Respiratory Infection

An infection affecting the upper part of the respiratory system, including the nose, throat, and bronchi, commonly known as the common cold.

PPE

Personal Protective Equipment; gear worn to minimize exposure to hazards that can cause serious workplace injuries and illnesses.

Contamination

The presence of unwanted substances or microorganisms in a material or environment, potentially causing harm or pollution.