The benefit to employers of deferred payments is that A) ...

[Awilson837]

The benefit to employers of deferred payments is that
 
  A) adverse selection is eliminated.
  B) employers cannot engage in any opportunistic behavior.
  C) these payments raise the cost of being fired, so more monitoring is needed.
  D) these payments raise the cost of being fired, so less monitoring is needed.

Question 2

Which of the following would NOT be used by firms to deter shirking?
 
  A) requiring employees to post a bond
  B) offering a bonus after five years of service
  C) paying more than the market wage
  D) paying less than the market wage

[Perkypinki]

Answer to Question 1

D

Answer to Question 2

D