John Really Wants a Promotion and Believes That He Has

question 74

Multiple Choice

John really wants a promotion and believes that he has a high probability of earning the promotion if he works hard. Because a promotion is important to him, that performing well will result in a promotion, and because he believes he a good chance of earning the promotion, this is an example of

• A) Equity theory
• B) Expectancy theory
• C) Maslow's Hierarchy of Needs
• D) Herzberg's Two Factor Theory

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Definitions:

Perfectly Competitive

A market scenario characterized by a large number of small firms competing against each other, where each firm makes negligible impact on market prices.

Positive Economic Profits

Earnings that exceed the opportunity costs of inputs, indicating that a firm is generating returns higher than the next best alternative use of its resources.

Market Price

The current price at which goods or services can be bought and sold in a marketplace, determined by supply and demand.

Profit

Profit represents the financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in operating the business.