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Which of the following resolves a principal-agent moral hazard problem? a. An employer pays a higher salary to employees with MBA degrees than those without.
Which of the following resolves a principal-agent moral hazard problem?
a. An employer pays a higher salary to employees with MBA degrees than those without.
b. A university offers a bonus to its basketball coach if the team makes the NCAA tournament.
c. An insurance company won't insure a new customer with two or more previous accidents
.d. An employer pays above-market wages to attract the best employees.
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