Leonard Works in a Company Where He Receives Minimum Wages

question 104

Multiple Choice

Leonard works in a company where he receives minimum wages. He does not have sufficient money to pay his medical bills. His manager offers to award him with a "Best Worker" certificate if he increases his productivity. This offer fails to motivate him. Which of the following explains Leonard's behaviour?

• A) progression principle
• B) principle of motion study
• C) deficit principle
• D) Hawthorne effect
• E) Weber's bureaucracy theory

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Definitions:

Insurance Contract

A legally binding agreement between an insurer and the insured, where the insurer agrees to compensate for certain losses in exchange for a premium.

Long Hedges

Occur when futures contracts are bought in anticipation of (or to guard against) price increases.

Short Hedges

Occur when futures contracts are sold to guard against price declines.

T-bills

Treasury bills, short-term debt obligations issued by the government with a maturity of less than a year, considered risk-free.