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:

Two-Part Tariff

Form of pricing in which consumers are charged both an entry and a usage fee.

Bundling

A marketing strategy that involves offering several products or services for sale as one combined product or service package.

Marginal Cost

The added cost of producing one additional unit of output.

Marginal Revenue

The incremental income achieved by dispensing one more unit of a good or service.