According to the Lucas Supply Function, Workers Who Experience a Positive

question 267

Multiple Choice

According to the Lucas supply function, workers who experience a positive price surprise will work fewer hours when

• A) there is no substitution effect from a positive price surprise.
• B) there is no income effect from a positive price surprise.
• C) the substitution effect dominates the income effect.
• D) the income effect dominates the substitution effect.

---

Definitions:

Organizational Behavior Modification (OBM)

A plan for managing the behavior of employees through a formal system of feedback and reinforcement.

Informal System

An unstructured and unofficial means of operation within an organization, consisting of activities and communications that are not prescribed by formal rules, policies, or structures.

Reinforcement

The process of encouraging or establishing a behavior through rewards or punishments.

Job Success

Achieving or exceeding the performance standards and goals set for a specific job role over a period.