If the Value of Your Marginal Product Is 100 and You

question 44

Multiple Choice

If the value of your marginal product is 100 and you are being paid 80, which of the following is the most plausible reason that you remain with the firm?

• A)You value the high rank and leadership role as well as the salary that your position offers.
• B)You have no other options so you stay or go unemployed.
• C)You are altruistic and want to contribute to the firm's normal profit.
• D)You have no way of knowing the value of your marginal product so you feel OK about the salary of 80.

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Definitions:

Rerum Novarum

An encyclical issued by Pope Leo XIII in 1891, addressing the condition of the working classes, advocating for workers' rights, and condemning both socialism and unfettered capitalism.

Welfare Capitalism

A system where corporations provide social welfare services to their employees in order to discourage governmental intervention and unionization.

Mann Act

A federal law passed in 1910 in the United States that made it illegal to transport women across state lines for the purpose of prostitution or debauchery, or for any other immoral purpose.

Conservationists

Individuals or groups dedicated to the protection and preservation of the environment and wildlife.