Which Action Would NOT Be an Example of a Principal

Multiple Choice

Which action would NOT 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 babysitter 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) An employer agrees to lower daily output quotas.