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Suppose That You Are a Manager

Question 101

Multiple Choice

Suppose that you are a manager. You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below. Suppose that you are a manager. You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below.   What should the manager do to solve the shirking problem? A)  Always monitor. B)  Never monitor. C)  Sincerely tell workers not to shirk. D)  Engage in  random  spot checks of the workplace. What should the manager do to solve the shirking problem?


A) Always monitor.
B) Never monitor.
C) Sincerely tell workers not to shirk.
D) Engage in "random" spot checks of the workplace.

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