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Suppose That You Are a Manager What Should the Manager Do to Solve the Shirking Problem

Question 115

Multiple Choice

Suppose that you are a manager.You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below.  Worker  Manager Work  Shirk  Monitor −1,11,−1 Don’t  Monitor 1,−1−1,1\begin{array}{c}\text { Worker }\\\text { Manager}\begin{array}{|l|l|l|} \hline & \text { Work } & \text { Shirk } \\\hline & & \\\text { Monitor } & -1,1 & 1,-1 \\\hline \text { Don't } \\\text { Monitor }& 1,-1 & -1,1\\\hline\end{array}\end{array} What should the manager do to solve the shirking problem?


A) Always monitor.
B) Never monitor.
C) Sincerely tell workers not to shirk.
D) Engage in "random" spot checks of the workplace.

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