1. How useful or informative do you think psychological and honesty tests are? Is their use a reasonable business policy? Assuming that tests like those described are valid and reliable, are they fair? LOr uh Do think tontn liko thoco a that not?

1. How useful or informative do you think psychological and honesty tests are? Is their use a reasonable business policy? Assuming that tests like those described are valid and reliable, are they fair? LOr uh Do think tontn liko thoco a that not?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter20: The Problem Of Adverse Selection Moral Hazard

Section: Chapter Questions

Problem 20.2IP

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1. How useful or informative do you think psychological and honesty tests are? Is their use a reasonable business policy? Assuming that tests like those described are valid and reliable, are they fair?
2. Do you think tests like these invade privacy and, if so, that this invasion is justified? Explain why or why not?

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