Suppose Luke Values a Scoop of Italian Gelato at $4

question 71

Multiple Choice

Suppose Luke values a scoop of Italian gelato at $4. Leia values a scoop of Italian gelato at $6. The pre-tax price of a scoop of Italian gelato is $2. The government imposes a "fat tax" of $3 on each scoop of Italian gelato, and the price rises to $5. The deadweight loss from the tax is

• A)$4, and the deadweight loss comes from both Luke and Leia.
• B)$4, and the deadweight loss comes only from Luke because he does not buy gelato after the tax.
• C)$2, and the deadweight loss comes from both Luke and Leia.
• D)$2, and the deadweight loss comes only from Luke because he does not buy gelato after the tax.

Recognize how different theories of motivation explain behavior in organizational settings.

Understand the difference between higher-order and lower-order needs and how they influence employee motivation.

Describe the practical application of motivation theories in managerial decisions to improve work settings.

Understand the key components and differences between the two-factor theory and other motivational theories.