Which of the Following Is an Important Aspect of Control

question 12

Multiple Choice

Which of the following is an important aspect of control over payroll?

• A) controls to limit salaries and wages so that they are no higher than competitors
• B) controls for efficiency in payroll procedures
• C) controls to screen potential employees for criminal records
• D) controls to monitor employee behavior, such as use of security cameras

---

Definitions:

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate without making at least one individual or preference criterion worse off.

Marginal Rate of Substitution (MRS)

The marginal rate of substitution is the rate at which a consumer is willing to substitute one good for another while keeping the utility level constant.

Cobb-Douglas Utility Functions

A mathematical representation of consumer preferences that shows how utility depends on the consumption of different goods, characterized by constant elasticity of substitution.

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.