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Chris Was Developing His Divisional Budget for the Upcoming Fiscal

question 6

Multiple Choice

Chris was developing his divisional budget for the upcoming fiscal year. He was fairly confident his total expenses would be $40,000 and his total revenue $60,000; but, in the budget, he understated his revenue and overstated his expenses to make it easier to achieve his goals.
-Chris believed that his employees would work harder if goals were more achievable, thus demonstrating the ___ model of ethics.


Definitions:

Economic Well-being

The state in which individuals or societies can satisfy their needs and desires, often measured by income, employment, and access to resources.

Taxes Affect

Describes how taxes influence economic decisions and behaviours of individuals and businesses, including consumption, investment, and savings.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, within an economy.

Inelastic

A situation in which the demand or supply for a good or service is relatively unresponsive to changes in price.

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