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    Microeconomics Theory Study Set 1
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    Exam 19: Contracts and Moral Hazards
  5. Question
    The Moral Hazard Associated with Managers Whose Productivity Is Difficult
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The Moral Hazard Associated with Managers Whose Productivity Is Difficult

Question 3

Question 3

Multiple Choice

The moral hazard associated with managers whose productivity is difficult to quantify can be decreased with


A) piece-rate contracts.
B) year-end bonuses.
C) decreased wages.
D) adverse selection.

Correct Answer:

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