Which of the following is not a common response to the moral hazard problem that employers face?
A)offering all employees some funding for additional education
B)paying efficiency wages
C)requiring employees to provide itemized receipts for reimbursable expenses
D)paying year-end bonuses rather than higher monthly earnings

Question

Quizplus · Accepted Answer

Offering all employees some funding for additional education is not a common response to the moral hazard problem that employers face. The other options (B, C, and D) are all common responses to address the moral hazard problem. Paying efficiency wages, requiring employees to provide itemized receipts for reimbursable expenses, and paying year-end bonuses are all ways to incentivize employees to act in the best interest of the company and reduce the likelihood of moral hazard.

Which of the Following Is Not a Common Response to the Moral