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:

Channel Power

The influence one has over the actions and decisions within a specific distribution channel or pathway.

Numerical Goals

Specific targets set in quantitative terms that a person or organization aims to achieve.

Two-way Communication

A process of exchange where information or ideas are sent and received between two or more parties, facilitating dialogue and feedback.

Quality Movement

The synthesis of “hard” efforts to improve work performance, such as scientific management and quantitative methods, with “soft” efforts, such as improving morale and building community. The quality movement, most associated with the work of W. Edwards Deming, typically involves participative leadership, continuous process improvement, and the use of groups.