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Vinnie knows that if he exerts enough effort he will receive an A in his organizational behavior course. If Vinnie receives an A, he will graduate magna cum laude. Vinnie does not really care if he graduates with honors, as long as he graduates. What does expectancy theory predict about Vinnie's behavior?
Economic Model
A theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.
Simplified
Made easier to understand or do; reduced in complexity.
Reality
The state of things as they actually exist, as opposed to how they may appear or may be thought to be.
Invisible Hand
A metaphor introduced by Adam Smith to describe how individuals pursuing their own interests unintentionally benefit society as a whole.
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