66 Ridge Is the Manager of a Motel

question 30

Multiple Choice

66. Ridge is the manager of a motel. As a condition of his employment, Ridge is required to live in a room on the premises so that he would be there in case of emergencies. Ridge considered this a fringe benefit, since he would otherwise be required to pay $800 per month rent. The room that Ridge occupied normally rented for $70 per night, or $2,100 per month. On the average, 90% of the motel rooms were occupied. As a result of this rent-free use of a room, Ridge is required to include in gross income.

• A) $0.
• B) $800 per month.
• C) $2,100 per month.
• D) $1,890 ($2,100 × .90).
• E) None of these.

Understand how exchange rate changes affect the price of imported goods and services.

Learn the principles of the gold standard and its implications for currency valuation.

Grasp the relationship between the price of currencies and their value in foreign exchange.

Comprehend the concepts of current account deficits and surpluses and their impact on national economies.

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Definitions:

Spotlight Effect

The belief that others are paying more attention to one's appearance and behavior than they really are.

Self-efficacy

Self-efficacy refers to an individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Defensive Self-esteem

A form of self-esteem characterized by a fragile sense of self that is highly sensitive to perceived criticism or threat.

Social-cognitive Theories

Theories that emphasize the role of cognitive processes in understanding social behavior, including how we interpret, analyze, and remember information about others and our social interactions.