When a Firm Evaluates the Contribution of a Worker to Its

question 66

Multiple Choice

When a firm evaluates the contribution of a worker to its ____, it must calculate the worker's contribution to revenue, minus the worker's ____.

• A)profits; wage
• B)output; wage
• C)profits; marginal productivity
• D)output; marginal productivity

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Definitions:

Double-Blind Procedure

An experimental procedure in which both the research participants and the research staff are ignorant (blind) about whether the research participants have received the treatment or a placebo. Commonly used in drug-evaluation studies.

Placebo Effect

Experimental results caused by expectations alone; any effect on behavior caused by the administration of an inert substance or condition, which the recipient assumes is an active agent.

Overconfidence

The tendency to be more confident than correct—to overestimate the accuracy of our beliefs and judgments.

Illusory Correlation

The perception of a relationship where none exists.