Underemployment Occurs When

question 74

Multiple Choice

Underemployment occurs when:

• A)a firm hires fewer than the required number of workers to save costs.
• B)a firm hires workers who do not possess the required skills that the job demands.
• C)a worker is over qualified and possesses more skills than what his job demands.
• D)a firm hires more than the required number of workers.
• E)a worker is laid off from his or her job temporarily and has the chance of being hired again.

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Definitions:

Von Neuman-Morgenstern

Refers to the theory of expected utility, formulated by John von Neumann and Oskar Morgenstern, which addresses choices made under conditions of risk.

Expected Utility Function

A mathematical expression that represents a consumer's preference for uncertain outcomes, weighting each outcome by its probability of occurrence.

Von Neuman-Morgenstern Utility Function

A utility function that accounts for the existence of risk and uncertainty, allowing for the calculation of expected utility.

Wealth

The total value of all assets owned by an individual, community, company, or country, minus any liabilities.