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Employers Can Try to Overcome the Moral-Hazard Problem Involving Their

Question 52

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Employers can try to overcome the moral-hazard problem involving their employees by


A) paying their employees more often.
B) paying their employees below-equilibrium wages since the employees will likely shirk some of their responsibilities.
C) better monitoring their employees' work efforts.
D) requiring their employees to take a pre-employment work effort test.

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