After Graduating from University, You Are Planning to Get a Job

question 115

Multiple Choice

After graduating from university, you are planning to get a job as an accountant.Your best friend Jay is planning on opening his own restaurant.He says he has thought a great deal about this and believes he will be very successful and it is a good decision.You explain to him that most new restaurants fail, but it does not factor into Jay's decision.What does this demonstrate?

• A)Base rates
• B)Anchoring effect
• C)Perceptual defence
• D)Sunk costs
• E)Hindsight

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Definitions:

Labor Demand Curve

A graphical representation showing the quantity of labor that firms are willing to hire at different wage rates.

Labor Supply Curve

A graph showing the relationship between wages and the quantity of labor workers are willing to offer, usually portraying a positive correlation.

Backward Sloping

Describes a demand curve that defies the usual law of demand, showing less quantity purchased as the price decreases.

Labor-supply Curve

A visual chart that displays the connection between the amount of work provided by employees and the rate of pay.