When Consumers' Incomes Decline During a Recession,they Increase Their Consumption

question 120

Multiple Choice

When consumers' incomes decline during a recession,they increase their consumption of instant coffee and reduce their consumption of other beverages.Therefore,instant coffee:

• A) is a necessity because consumers buy more during a recession.
• B) has a negative income elasticity of demand.
• C) has an income elasticity of demand greater than zero but less than one.
• D) is normal.

Appreciate the psychological impacts (e.g., Pygmalion effect) of expectation and recognition on employee performance.

Understand the basic concepts of motivation theories, including Theory X and Theory Y, and their implications for management.

Recognize the significance of job design elements like job enrichment and job enlargement in motivating employees.

Identify the role of expectancy and reinforcement in employee motivation.

---

Definitions:

Underlying Stock

This refers to the stock on which derivative contracts, such as options and futures, are based.

American Call

A type of call option that can be exercised at any time before its expiration date.

European Call

An option contract that gives the holder the right, but not the obligation, to buy a specific asset at a specified price within a fixed period, applicable only at the expiration date.

Expiration Date

The specified date on which an option, futures contract, or other derivative expires, and settles by either physical delivery or cash settlement.