Employers can try to overcome the moral-hazard problem involving their employees by:
A....
Employers can try to overcome the moral-hazard problem involving their employees by:
A. better monitoring their employees' work efforts
B. paying their employees below-equilibrium wages since the employees will likely shirk some of their responsibilities
C. paying their employees more often
D. requiring their employees to take a pre-employment work effort test.
Answers: 3
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