Moral hazard can be avoided by:
A. removing the asymmetric information.
B. employers monitoring employee effort.
C. employers incentivizing employees to maintain consistent effort.
D. All of these statements are true.
Answer: D
You might also like to view...
According to the concept of comparative advantage, a good should be produced in that nation in which
A. terms of trade are maximized. B. domestic opportunity cost is the smallest. C. money is used. D. domestic opportunity cost is greatest.
In the past few years two deviations from U.S. free trade policies have been _________________ and ______________________.
Fill in the blank(s) with the appropriate word(s).
In the case of a specific tax, tax incidence is independent of who pays
A) only when supply and demand elasticities are not constant. B) only when the tax is collected from consumers. C) in most but not all cases. D) in all cases.
As more firms enter a perfectly competitive industry, the industry supply curve shifts
a. to the left and price falls b. to the right and price rises c. to the right and price falls d. to the left and price rises e. in an unpredictable way