Multiple Choice
Which of the following would be an example of a principal trying to deal with a moral hazard problem?
A) The parents of an infant secretly place video cameras in their house before the baby-sitter arrives.
B) An insurance company checks police records to determine if its policyholders have received traffic citations.
C) An employer examines his workers' output on a daily basis.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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