Bob, the Manager and Owner of a Small Company, Believes

question 209

Multiple Choice

Bob, the manager and owner of a small company, believes in the theory of efficiency wages. As such, Bob would be most likely to agree with which of the following quotes?

• A)"The only place where success comes before work is in the dictionary."
• B)"Work hard. Play harder."
• C)"Pay a man for the job you want him to do."
• D)"Imagination is more important than knowledge."

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they receive from the central bank's discount window.

Reserve Requirement

Regulations set by central banks determining the minimum amount of reserves each bank must hold as a proportion of its deposits.

Protection Against Inflation

Strategies or financial instruments designed to safeguard an individual's or entity's purchasing power from the erosion effects of inflation.

Liquid Assets

Assets that can be quickly and easily converted into cash with little to no loss in value.