When Will the Substitution Effect of a Wage Increase Cause

question 60

Multiple Choice

When will the substitution effect of a wage increase cause a fall in the amount of labor employed?

• A) Always.
• B) When labor is not a regressive factor.
• C) When labor and capital are substitutes in production.
• D) When labor and capital are complements in production.

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Definitions:

Motivator Factors

Elements of a job that can lead to satisfaction and motivate employees to higher performance, such as recognition, achievement, and personal growth.

Job Characteristics Model

A framework that suggests jobs can be designed with specific characteristics (skill variety, task identity, task significance, autonomy, and feedback) to enhance job satisfaction, motivation, and productivity.

Individual Differences

Variations or disparities among individuals in terms of traits, abilities, or characteristics.

Expectancy Model

A theory that suggests motivation is based on the expectation of desired outcomes and the value placed on those outcomes.