Which of the Following Practices Would Indicate That an Employer

Multiple Choice

Which of the following practices would indicate that an employer is trying to overcome a moral-hazard problem with his employees?

A) The employer pays his workers wages that are unusually high for the industry and region.
B) The employer pays his employees year-end bonuses depending to how well the business does and his observations of the employees' efforts.
C) The employer has voluntarily removed video cameras from the factory floor.
D) Both A and B are correct.