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Example of a moral or ethical hazard

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Reference no: EM131069542

Q1 - Provide an example of a moral or ethical hazard an organization might face relating to labor markets. How can this affect employees, an organization, and the economy?

Q2 - the intersection between labor supply and labor demand determines the equilibrium wage and the equilibrium level of employment. Why might some firms pay workers a wage above the market equilibrium, even when there is surplus labor?

Reference no: EM131069542

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