Which one of the following concepts is a form of moral hazard caused by the difficulty or cost of monitoring employees' behavior after the firm has hired them?
a) Principal-agent failure
b) Shirking
c) Selection bias
d) Cognitive bias.
ANS B
Which one of the following concepts is a form of moral hazard caused by the difficulty or cost of monitoring employees' behavior after the firm has hired them?
a) Principal-agent failure
b) Shirking
c) Selection bias
d) Cognitive bias.
ANS B