Which of the following is not a common response to the moral hazard problem that employers face?
A) providing an on-site workout facility
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

Providing an on-site workout facility is not a common response to the moral hazard problem that employers face. Whereas B, C, and D are all common responses - paying efficiency wages incentivizes productive work, requiring itemized receipts helps prevent employees from overcharging for expenses, and paying year-end bonuses encourages employees to focus on long-term success rather than short-term gains.

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