FIGURE 5- 5 -Refer to Figure 5- 5. Suppose This Market for Gardening

question 25

Multiple Choice

FIGURE 5- 5
-Refer to Figure 5- 5. Suppose this market for gardening services is in a free- market equilibrium. If the government then imposes a price floor of $50 per hour for gardening services, the result would be

• A) a loss of economic surplus of the areas 6 and 7.
• B) a loss of economic surplus of the area 1.
• C) a loss of economic surplus of the areas 2 and 6.
• D) a loss of economic surplus of the areas 1, 2, 3, and 4.
• E) a loss of economic surplus of the areas 2, 3, 4, 6, and 7.

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Definitions:

Theory Y

A management concept that assumes employees are self-motivated, seek responsibility, and are creative problem solvers.

Job Autonomy

The extent to which a role allows a worker the autonomy to plan their tasks and decide on the methods to accomplish them.

Democratic Manager

A managerial style characterized by involving employees in decision-making, valuing their input, and making decisions by consensus.

Chris Argyris

A prominent American psychologist known for his contributions to the development of organizational learning, double-loop learning, and theories related to the behavior of organizations.