If a Prospective Employee Is Not Offered His/her Reservation Utility

question 32

Multiple Choice

If a prospective employee is not offered his/her reservation utility or reservation wage,then he/she will:

• A)tend to look for another job or withdraw from the labor market.
• B)seek a larger fringe 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:

Decision-Making Principles

Guidelines or criteria used to make choices among alternatives.

Determination of Parties

The process of identifying the entities or individuals involved in an agreement, conflict, or legal case.

Ethical Intensity

The magnitude of ethical concern perceived in a situation, influenced by factors like potential harm, social pressure, and probability of effect.

Vary Directly

A relationship where an increase in one variable corresponds with an increase in another variable.