9. After a probationary period of six years, during which they teach, research, and serve on committees,

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9. After a probationary period of six years, during which they teach, research, and serve on committees, university professors who meet acceptable standards are given tenure. Tenure offers these professors tremendous job security.

a. Explain why a tenure system makes universities susceptible to a moral hazard problem.

b. Explain why the problems of moral hazard caused by tenure are likely to be greater than the problems of adverse selection.

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Microeconomics

ISBN: 9780716759751

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Oct 16, 2024 02:03 AM

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9. After a probationary period of six years, during which they teach, research, and serve on committees,

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Microeconomics

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