Suppose a Sailboat Factory and a Fishing Boat Factory Exist

question 31

Multiple Choice

Suppose a sailboat factory and a fishing boat factory exist in the same town. Employees at both factories have the same skills and are initially paid the same wage rate. If the sailboat manufacturer increases the hourly wage paid to his employees, then the

• A)demand for sailboats will increase and the supply will decrease.
• B)quantity supplied of labor at the sailboat factory will increase.
• C)supply of labor at the fishing boat factory will increase.
• D)demand for sailboats will decrease and the supply will increase.

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Definitions:

Job Characteristics Model

A theory that proposes that the nature of an individual’s job or the characteristics of the work can influence their motivation, satisfaction, and performance.

Kelly's Covariation Model

A theory that explains how people attribute causes to events based on the consistency, distinctiveness, and consensus of the information available.

Internal Factors

Elements within an individual or organization that influence behavior, decisions, and outcomes, such as personal skills or organizational culture.

External Factors

Influences that originate outside an individual, impacting behaviors, decisions, health, and psychological well-being.