Susan Is a Plant Manager in Charge of a Factory

question 40

Multiple Choice

Susan is a plant manager in charge of a factory in a relatively poor country.Even though market wages are low,she decides to raise the wages of her workers.Her decision

• A)might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive.
• B)will help eliminate the excess supply of labor.
• C)may cause her workers to reduce the effort they expend at their jobs.
• D)All of the above are correct.

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Definitions:

Rate of Return

The increase or decrease in the value of an investment during a set timeframe, represented as a proportion of the investment's starting price.

CIFP Course Materials

Comprehensive learning materials provided for the Certified Financial Planner (CIFP) program covering financial planning, investment strategies, and ethical practices.

Ordinary Annuity

A financial product where payments are made at the end of each period for a fixed amount of time.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in the discounting of future income streams or liabilities.