Which Is the Best Example of the Problem of Strong

question 119

Multiple Choice

Which is the best example of the problem of strong employee incentives with poor monitoring with respect to improving student performance by standardized testing?

• A) Schoolteachers and administrators improved student test scores by changing incorrect answers.
• B) Union officials overfunded teacher pension plans with state and local money.
• C) Students were sharing answers by text messaging.
• D) Teachers were not "clocking out" when on lunch break.

---

Definitions:

Undervalued

Describes an asset or company being priced below its true intrinsic or market value.

Overvalued

Overvalued describes a situation where the market price of an asset is higher than its intrinsic value, often due to speculation or overestimation of its financial performance.

Par Value

A nominal value assigned to shares of stock by the issuing company, which has little relation to its market value.

Undervalued

A financial assessment that concludes an asset or a company's market price is lower than its intrinsic value.