If a firm hires lazy employees,
A) it must pay them differently or hard-working employees will engage in moral hazard.
B) it must pay them more or hard-working employees will engage in moral hazard.
C) it must fire them before their laziness spreads to hard-working employees.
D) the lazy employees make hard-working employees look good.
A
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The existence of external economies of scale
A) may be associated with a perfectly competitive industry. B) cannot be associated with a perfectly competitive industry. C) tends to result in one huge monopoly. D) tends to result in large profits for each firm. E) focuses more on individual firms than the industry as a whole.
Positive spending shocks lead to ________ output ________
A) higher; in both the short and long runs B) higher; in the short run but not in the long run C) lower; in both the short and long runs D) lower; in the short run but not in the long run