Buddy Is the Owner of a Firm That Bottles Beer

question 19

Multiple Choice

Buddy is the owner of a firm that bottles beer in St.Louis,Missouri.There are many other such firms in the area.Buddy decides that if he pays his workers a wage higher than the going market wage,his profits will increase.Which of the following is a likely explanation for his decision?

• A)The higher the wage,the less often his workers will choose to leave his firm.
• B)The higher the wage,the lower will be the costs of obtaining needed supplies.
• C)The higher the wage,the more he can charge for his beer
• D)The higher the wage,the more he will have to monitor his workers for shirking.

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Definitions:

Slacker

A person who avoids work or effort.

Group Task

An assignment or project to be completed by a group of people working together, emphasizing teamwork and collaboration.

Social Loafing

The occurrence where people put in less effort towards accomplishing an objective as part of a group than they do when working individually.

Exert Less Effort

A phenomenon where individuals decrease their effort output in situations where they perceive lesser necessity for intense work.