In an Economy Which Produces Two Goods X and Y

question 59

Multiple Choice

In an economy which produces two goods X and Y, using two inputs L and K, efficient input use occurs when

• A) MRTS_LK^X = MRS_LK^Y
• B) MRT_XY = MRS_XY
• C) MRS_X/P_X = MRS_Y/P_Y
• D) MRTS_LK^X = MRTS_LK^Y

Comprehend the impact of budgeting on organizational planning and control.

Understand the importance of flexibility and adaptive planning in budgeting.

Learn the sequence in which different component budgets are prepared.

Identify methods to motivate employees through budgeting.

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Definitions:

Need for Achievement

A psychological drive that compels an individual to pursue and attain goals.

Need for Power

A personality trait characterized by a desire to control or influence others, and a preference for being in leadership positions.

Need for Motivation

An internal force that propels individuals towards achieving their objectives, sustaining their effort in the face of obstacles.

Yerkes-Dodson Law

A theory suggesting there is an optimal level of arousal for performance, where too little or too much arousal can detrimentally affect task performance.