Suppose a Start-Up Company Can Operate from a Traditional Office

question 91

Multiple Choice

Suppose a start-up company can operate from a traditional office space or from a virtual office in which there is no physical office location and the employees collaborate over internet connections from their individual homes. Shirking is more difficult to monitor under the virtual office plan. How would the efficiency wage and level of employment for the virtual office compare to the traditional office plan?

• A) Efficiency wage and employment are higher.
• B) Efficiency wage is lower, employment is higher.
• C) Efficiency wage is higher, employment is lower.
• D) Efficiency wage and employment are lower.

---

Definitions:

Research Hypothesis

A proposed explanation or prediction about a relationship that can be tested through study and experimentation.

Null Hypothesis

A statistical hypothesis that assumes no significant difference exists in a particular condition or feature between two or more sets of data.

Supported

The state or condition of being backed up with evidence or data, making an assertion more robust or credible.

Reject

In statistics, to conclude that there is enough evidence to discard the null hypothesis in favor of the alternative hypothesis.