If an Prospective Employee Is Not Offered Her Reservation Utility

question 41

Multiple Choice

If an prospective employee is not offered her reservation utility or reservation wage, then she will:

• A) tend to look for another job or withdraw from the labor market.
• B) seek a larger benefit package.
• C) use the job as the basis for a career, assuming that wages will increase beyond the marginal revenue product over time.
• D) accept the job because a wage below the reservation utility is very attractive.

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Definitions:

Company Policies

Are guidelines established by businesses to govern their operations, employee behavior, and company procedures.

Work Assignments

Tasks or projects allocated to employees or team members as part of their job responsibilities.

Participative Management

Participative Management is a management approach whereby employees at all levels are involved in the decision-making processes of the organization.

Directive Leadership Style

A leadership approach where the leader provides clear instructions and expectations, and closely supervises the tasks and processes.