Julie Works at a Local Hat Factory for $12 an Hour

question 152

Multiple Choice

Julie works at a local hat factory for $12 an hour and typically works 40 hours a week.The company threatens layoffs,so Julie and the others agree to a pay cut.Julie now earns $10 an hour and works every hour over 40 that her boss will let her.Julie's response to this pay cut:

• A)was to work more,demonstrating a dominant income effect.
• B)was to work more,demonstrating a dominant price effect.
• C)was to work less,demonstrating a dominant income effect.
• D)was to work less,demonstrating a dominant price effect.

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Definitions:

Competitive Advantage

The attributes that allow an organization to outperform its competitors by offering greater value to consumers or operating more efficiently.

Differentiate

The process of making or acknowledging distinctions between things, often to set one apart from others in a competitive market.

Planning

This is the process of setting objectives, defining strategies, and outlining tasks and schedules to accomplish the goals of a business or project.

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.