Your Boss Has Told You That Because of a Decrease

question 44

Multiple Choice

Your boss has told you that because of a decrease in the demand for the designer baby food your firm produces,he will have to cut everyone's salary next year to avoid layoffs.In response to this news you would

• A)increase your labour supply because the income effect would be equal to the substitution effect.
• B)decrease your labour supply because the substitution effect would be stronger than the income effect.
• C)increase your labour supply because there would be an income effect,but no substitution effect.
• D)decrease your labour supply because there would be a substitution effect,but no income effect.

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Definitions:

Highly Assertive

Characterized by confident and forceful behavior or attitudes, especially in stating one's opinions or claiming one's rights.

Relationship-oriented

A focus or preference for building and maintaining strong interpersonal connections and valuing relationships over tasks or goals.

Task-oriented

Refers to a focus or emphasis on completing specific tasks or objectives, often used in the context of leadership or teamwork styles.

Laugh

A vocalized expression of amusement or joy, often characterized by rhythmic, audible contractions of the diaphragm and other parts of the respiratory system.