If a firm hires lazy employees,

A) the lazy employees make hard-working employees look good.
B) it must pay them more or hard-working employees will engage in moral hazard.
C) it must fire them before their laziness spreads to hard-working employees.
D) it must pay them differently or hard-working employees will engage in moral hazard.

ANSWER:

 

D) it must pay them differently or hard-working employees will engage in moral hazard.