Which of the following is a solution to the problem of moral hazard in the labor market?
A) Provision of real wages
B) Provision of nominal wages
C) Provision of efficiency wages
D) Provision of minimum wages
C
Economics
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Automatic fiscal stabilizers
a. keep the federal budget balanced. b. keep the federal high employment budget balanced. c. help to reduce the severity of recessions and inflationary boom periods. d. increase structural deficits over the business cycle. e. both c and d.
Economics
On the graph above, suppose the economy is at point 6. Which sequence of points best illustrates the short-run and then long-run impacts of an "expansionary fiscal contraction"?
A) 2, 7, 8 B) 4, 7, 1 C) 1, 4, 5 D) 1, 4, 2
Economics