A Higher Wage Could Result in a Lower Labor Cost

question 150

Multiple Choice

A higher wage could result in a lower labor cost per unit of output than a lower wage if the higher wage

• A) is accompanied by an offsetting decline in fringe benefits.
• B) increases supervision costs.
• C) reduces job turnover.
• D) increases worker absenteeism.

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Definitions:

Drive-Reduction Theory

A theory that explains motivation as being based on the goal of eliminating uncomfortable states.

Clark Hull

An American psychologist known for his drive reduction theory, which suggests that human motivation arises from the desire to reduce drives like hunger or thirst.

State Of Arousal

A condition of the nervous system characterized by heightened sensory awareness and readiness for action.

Primary Drives

Basic, innate motivations that are essential for survival, such as hunger, thirst, and the need for sleep.