'Moral hazard' describes contexts in which an employee prefers to exert less effort than the effort that the owner wants because the employee's effort cannot be accurately monitored and enforced.

Name: 'Moral hazard' describes contexts in which an employee prefers to exert less effort than the effort that the owner wants because the employee's effort cannot be accurately monitored and enforced.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is an accurate definition of moral hazard in the context of employer-employee relationships.

'Moral Hazard' Describes Contexts in Which an Employee Prefers to Exert