The Scale Effect of a Wage Change Implies That

question 4

Multiple Choice

The scale effect of a wage change implies that:

• A) Firms substitute toward the input that has become relatively cheaper.
• B) The demand for labour may be upward sloping if labour is an inferior input.
• C) Along with the substitution effect, the demand for labour is downward sloping.
• D) In order to increase output, a firm will use more labour even if the wage increases.
• E) The firm reduces its output in response to the wage increase.

Identify the core values that contribute to the success of companies.

Grasp the characteristics of multiculturalism and its impact on organizational culture.

Distinguish between various subcultures within organizations and their unique characteristics.

Understand the key concepts and practices of diversity leadership.

---

Definitions:

Oral Stage

is the first stage in Freud's psychosexual development theory, occurring from birth to about 18 months, where an infant's pleasure centers are in the mouth.

Oedipus Complex

A Freudian concept in psychoanalytic theory that describes a child's feelings of desire for their opposite-sex parent and jealousy and rivalry with their same-sex parent.

Sexual Attachment

A form of emotional bonding or connection between individuals that incorporates sexual intimacy or attraction.

Jealousy

A complex emotion that often involves feelings of insecurity, fear, concern, and envy over relative lack of possessions, status or something of great personal value.