A typical reason moral hazard arises in the workplace is:
A. employees have no incentive to let the employer know how hard they can really work, because that might be expected of them all the time.
B. employees do not directly benefit from their effort, only their time spent at work.
C. employees get paid the same, whether they try really hard or not.
D. All of these statements are true.
Answer: D
You might also like to view...
In recent years, U.S. exports have exceeded U.S. imports
Indicate whether the statement is true or false
The labor supply curve(s) will shift left if there is a decrease in wages.
Select whether the statement is true or false. A. True B. False
Is it possible for a country with a relatively large GDP to have a relatively small per-capita GDP?
A) Yes, since the country with a relatively large GDP could also have a relatively large population. B) No, since countries with a relatively large GDP (such as the United States and Japan) also have a relatively high per-capita GDP. C) Yes, but only under the condition that the country "produces" relatively more "bads" than other countries. D) Yes, since government transfer payments may be exorbitantly high in the country with the relatively high GDP. E) There is not enough information to answer this question.
If the money multiplier decreased from 20 to 12.5, then
a. the Fed increased the reserve ratio from 5 percent to 8 percent. b. the Fed increased the fed funds rate from 5 percent to 8 percent. c. the Fed decreased the reserve ratio from 8 percent to 5 percent. d. the Fed decreased the fed funds rate from 8 percent to 5 percent.