Howard Thought His Expense Control Problems Were Resolved When He

question 43

Multiple Choice

Howard thought his expense control problems were resolved when he decided he would hire sales clerks from the local high school,and pay them minimum wage at his profession golf shop.Which of the following statements is most likely to be TRUE of Howard's decision?

• A)He will probably have higher turnover,absenteeism and poor labor productivity.
• B)Young energetic enthusiasm will help Howard's sales.
• C)No one works for minimum wage.
• D)Since high school students are inexperienced,it is justified to pay minimum wage.
• E)It is a good move because of the decreasing workforce.

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Definitions:

Entry Fee

A charge that must be paid to gain access to a particular service, activity, or location.

Consumption

Refers to the act of using goods and services to satisfy needs and wants.

Income

The money received on a regular basis for work or through investments.

Optimal Consumption

The level of consumption at which a consumer achieves the highest possible satisfaction or utility given their income and the prices of goods and services.