In a Market Economy, If Demand for a Product Exceeds

question 34

True/False

In a market economy, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.

Understand the difference between higher-order and lower-order needs and how they influence employee motivation.

Describe the practical application of motivation theories in managerial decisions to improve work settings.

Understand the key components and differences between the two-factor theory and other motivational theories.

Identify the role of satisfier and hygiene factors in the two-factor theory.

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Definitions:

Marginal Physical Product

The additional output resulting from a one-unit increase in the quantity of a particular input, holding all other inputs constant.

Marginal Product

The extra output gained by incorporating one more unit of a given input in the production process, assuming all other inputs remain unchanged.

Average Product

The output per unit of input, calculated by dividing total product by the quantity of input.

Factor of Production

Resources used in the creation of goods and services, which include land, labor, capital, and entrepreneurship.