Which of the following is an example of moral hazard?
A) I hire you to work in my garden for a fixed fee, and you work hard all day.
B) I hire you to work at an hourly rate and you work as slowly as possible.
C) You apply for the job only because I pay a fixed wage per day, no matter how much or little you do.
D) You agree to be paid by the weed to work in my garden, and then don't work hard.
B
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The income of the town of Kennebunkport has been growing by 2 percent per year. If this growth continues into the future, how long will it take until the town's income has doubled?
a. About 36 years b. About 24 years c. About 96 years d. About 50 years e. About 144 years
The market surplus induced by price supports can be eliminated through all of the following except
A. Increased subsidies. B. Export sales. C. Restrictions on supply. D. Government purchases.