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All of the Following Are Potential Problems with Inequality in the Pay

Question 2

Multiple Choice

All of the following are potential problems with inequality in the pay structure, except that:


A) It may not be attractive to workers with risk-averse preferences.
B) It can discourage free-riding behaviour on the part of workers, thus providing incentives to work more diligently.
C) It can discourage cooperative behaviour and teamwork.
D) It can encourage sabotage that prevents other employees from being promoted.

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