The Key Assumption of the Income-Leisure Model

question 90

Multiple Choice

The key assumption of the income-leisure model:

• A)is not applicable to the real world and so negates the usefulness of the model.
• B)is not valid as employers will not cater to workers' income-leisure choices.
• C)holds good in general because workers can vary work hours with overtime,leaves without pay and early retirement.
• D)is only applicable to entrepreneurs and not salaried workers who are associated with less promising financial rewards.

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Definitions:

Excess Capacity

The situation in which a company can produce more goods or services than currently demanded due to available resources exceeding production requirements.

Outside Supplier

An external entity that provides goods or services to a business, often used in the context of manufacturing or production.

Investment Center

A division or unit of a business that is responsible for its own revenues, expenses, and investments, and is evaluated based on its return on investment.

Performance Evaluation

The process of assessing and reviewing an employee's or organization's work performance and outcomes against predefined objectives.