Which of the Following Supply-Side Theories Is Based on the Premise

question 30

Multiple Choice

Which of the following supply-side theories is based on the premise that higher earnings flow to those who improve their potential productivity by investing in themselves?

• A)compensating differentials theory
• B)signalling theory
• C)efficiency wage theory
• D)human capital theory
• E)reservation wage theory

---

Definitions:

Managerial Levels

Refers to the distinct layers of management within an organization, often categorized as top, middle, and lower or operational levels.

Virtual Teams

Groups of people who work together from different geographical locations, coordinated by communication technology.

Cross-functional Teams

Teams composed of members from different departments or functional areas working towards a common goal.

Operate

To control the functioning of; to use and manage a device, machine, process, or system.