Question: For each of the following situations, identify the principal and the agent, describe the information asymmetry involved, and explain how moral hazard has been reduced.
a. Dental insurance companies offer free annual checkups
b. Firms compensate traveling salespersons with commissions (a percentage of the value of the sales)
c. Agricultural seed companies pay migrant workers bonuses if they work the entire summer season
d. McDonald's pays twice the minimum wage to high school students