Economic Theory Predicts That an Increase in Wages

question 230

Multiple Choice

Economic theory predicts that an increase in wages

• A)will cause a wage earner to work more.
• B)will cause a wage earner to work less.
• C)will cause a wage earner to be more productive.
• D)might cause a wage earner to work more or work less.

Grasp the principles underlying the derived demand curve for a resource and how it is affected by changes in the demand for final products.

Understand the basic principles of inventory costing methods such as FIFO (First In, First Out).

Grasp the implications of variable and absorption costing on financial statements and decision making.

Comprehend the effects of production and sales levels on a company’s profits under different costing methods.

---

Definitions:

Contingency Theory

A theory in organizational behavior that suggests the effectiveness of leadership depends on the situation at hand and how certain factors affect the situation's outcome.

Social Learning

The process of acquiring new behaviors through observation and imitation of others, as proposed by Albert Bandura.

Classical Conditioning

The procedure of learning through establishing connections between a stimulus from the surroundings and one that occurs naturally.

Secondary Reinforcers

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as conditioned reinforcers.