Which of the Following Practices Would Indicate That an Employer

Which of the following practices would indicate that an employer is trying to overcome a moral-hazard problem with his employees?

A) The employer pays his workers wages that are unusually high for the industry and region.
B) The employer has voluntarily removed video cameras from the factory floor.
C) The employer has discontinued the practice of giving his employees' year-end bonuses.
D) Both A and B are correct.

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