Aaron Is the Owner of a Firm That Produces Wind

question 82

Multiple Choice

Aaron is the owner of a firm that produces wind power in southern Alberta. There are many such firms in the area. Aaron decides that if he pays his workers a wage higher than the going market wage, his profits will increase. What is a likely explanation for his decision?

• A) The higher the wage, the less often his workers will choose to leave his firm.
• B) The higher the wage, the lower will be the cost of obtaining needed supplies.
• C) The higher the wage, the more he can charge for his wind power.
• D) The higher the wage, the less competition will be in the industry.

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Definitions:

Verbal Punishment

A method of discipline that involves reprimanding or scolding an individual through words.

Problem Behaviors

Actions or conduct that are considered inappropriate, troublesome, or challenging, especially within a societal, educational, or psychological context.

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Political Party

A political party is an organized group of people with at least roughly similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office.