Asked by Aryan Beitjader on Sep 24, 2024

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​The following is NOT an example of a potential monitoring solution to moral hazard

A) ​blocking social network sites on company computers
B) rejecting a job candidate that fails to show up at the allotted interview time
C) GPS tracking devices in repair trucks
D) ​listening in on call center conversations

Moral Hazard

An instance where an individual or group is inclined to partake in high-risk activities, reassured by the fact that any resultant costs will be absorbed by a different party.

Monitoring Solution

A system or tool used to continuously check and report on the performance or status of a process, network, or system.

Social Network Sites

Online platforms that allow users to create personal profiles, interact with friends and family, and share content and experiences.

  • Identify strategies for mitigating moral hazard in various settings.
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Verified Answer

PM
Philips Massi2 days ago
Final Answer :
B
Explanation :
Rejecting a job candidate that fails to show up at the allotted interview time is not a potential monitoring solution to moral hazard. This is a measure to enforce punctuality and professionalism, but it does not address the issue of moral hazard, which refers to the tendency of individuals to take risks or engage in harmful behavior when they are protected from the consequences of their actions. The other choices (blocking social network sites, GPS tracking, and listening in on call center conversations) are all examples of monitoring solutions that can help deter or detect moral hazard in different contexts.