Which of the Following Holds That Firms Can Save Money

question 80

Multiple Choice

Which of the following holds that firms can save money and become more productive if they pay higher wages and better benefits because they are able to hire and leverage the best talent?

• A) Classical management theory
• B) Behavioral performance management
• C) Efficiency wage theory
• D) Agency theory

---

Definitions:

Inflation

The uplift in the aggregate price level for goods and services, reducing the efficacy of buying power.

Real GDP

Gross Domestic Product adjusted for inflation, which provides a more accurate depiction of an economy's size and how it's growing over time.

Inflation

An across-the-board inflation in prices resulting in a diminished capacity of money to purchase goods and services.

Per Capita GDP

Gross Domestic Product per person, a measure of a country's economic output that accounts for its population.