How can performance-based incentives help companies facing moral hazard?
What will be an ideal response?
Moral hazard occurs in a company when employees shirk from their responsibilities. Performance-based incentives encourage workers to work harder because they would lose money by shirking. Thus, performance-based incentives help in solving the problem of moral hazard.
Economics
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Describe China's reform path, including the forces that started China's reform efforts and how they continued through the 1980s and early 1990s
What will be an ideal response?
Economics
When net exports are positive,
a. exports are greater than imports b. imports are greater than exports c. imports are greater than investments d. exports are greater than depreciation spending e. exports are greater than net investment
Economics