Suppose That You Are a Manager

question 101

Multiple Choice

Suppose that you are a manager. You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below. What should the manager do to solve the shirking problem?

• A) Always monitor.
• B) Never monitor.
• C) Sincerely tell workers not to shirk.
• D) Engage in "random" spot checks of the workplace.

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Definitions:

Moral Capabilities

The capacities or abilities of individuals to make ethical choices, understand moral principles, and act in ways that are consistent with moral values.

Moral Persons

Beings capable of making ethical decisions and recognizing moral claims upon their actions.

Consequentialist Thought

Ethical philosophy considering the consequences of actions as the primary basis for any judgment about the rightness or wrongness of those actions.

Utilitarian Thought

A philosophical belief that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.