The ________ Relationship Can Be Seen in the Power of Occupational

question 45

Multiple Choice

The ________ relationship can be seen in the power of occupational categories.In occupations where supply is low relative to demand,compensation is more attractive.

• A)substitutability
• B)scarcity-dependence
• C)referent power
• D)importance-dependence
• E)referent dependence

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Definitions:

Law of Diminishing Returns

The principle that as investment in a single factor of production increases, holding all others constant, the incremental gains in output will eventually decrease.

Law of Diminishing Marginal Utility

states that as a person consumes more of a good or service, the utility (satisfaction) gained from each additional unit decreases.

Principal-agent Problem

A dilemma occurring when one person or entity (the agent), is able to make decisions on behalf of, or that impact, another person or entity: the principal.

Complementary Resource

A good or service that enhances the use or value of another good or service when the two are used together.