Wage Setting

question 9

Multiple Choice

Wage setting

• A)is based only on wages expected to be paid elsewhere.
• B)depends on both expected inflation and relative wages.
• C)occurs without regard to inflation or wages being paid by other firms.
• D)is based only on expected inflation.
• E)is based only on the previous period's wages.

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Definitions:

Reciprocal Determinism

A concept of Albert Bandura's social cognitive theory that suggests individual behavior, environmental factors, and personal cognitive factors, including beliefs, all interact to shape behavior.

External Events

Occurrences happening outside of an individual that can affect mood, behavior, and perceptions.

Internal Factors

Influences that originate within a person, such as beliefs, values, and personal drive.

Generalized Expectancies

Beliefs or assumptions about how general traits or behaviors are likely to be rewarded or punished in various situations.