Which of the following is not a method firms use to avoid the moral ha – McqOptions

MCQOPTIONS

1.	Which of the following is not a method firms use to avoid the moral hazard problem in the employment relationship ?
A.	They pay employees with delayed compensation such as a year-end bonus
B.	They buy life insurance on their workers
C.	They pay above equilibrium wages
D.	They put hidden video cameras in the workplace
Answer» C. They pay above equilibrium wages

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