Discuss the Three Major Factors in Expectancy Theory and Give

question 17

Essay

Discuss the three major factors in expectancy theory and give an example for each. Explain the possible impact of these factors on the motivation of a worker.

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Definitions:

Disposable Income

The cash reserves left for households to spend and save after paying income taxes.

Disposable Income

Funds households have for saving and spending following the deduction of income taxes.

Disposable Income

Disposable income for households after accounting for income taxes, meant for spending and saving.

Marginal Propensity

The ratio of change in an economic variable, such as consumption or saving, to a change in another variable, like income.