Employers can try to overcome the moral-hazard problem involving their employees by
A)paying their employees more often.
B)paying their employees below-equilibrium wages since the employees will likely shirk some of their responsibilities.
C)better monitoring their employees' work efforts.
D)requiring their employees to take a pre-employment work effort test.

Question

Quizplus · Accepted Answer

Better monitoring of employees' work efforts directly addresses the moral-hazard problem by ensuring that employees are fulfilling their responsibilities and not shirking their duties.

Employers Can Try to Overcome the Moral-Hazard Problem Involving Their