As a Result of a Fire, a Small Business Owner

question 101

Multiple Choice

As a result of a fire, a small business owner loses some of her computers and other equipment. If the property of diminishing returns applies to all factors of production, she should expect to see

• A)an increase in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
• B)an increase in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.
• C)a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
• D)a decrease in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.

Recognize the importance of real wage increases and how they are calculated.

Understand the role and implications of expectancy theory in designing effective pay systems.

Comprehend the significance of external and internal factors that influence pay rates.

Differentiate between various job evaluation systems and their purpose.

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The head of the penile shaft.

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Cells and structures that develop from the embryo in early pregnancy, leading to the formation of organs and tissues in the fetus.