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kogti [31]
3 years ago
13

Suppose Jack Roper pays his employees $19.25 per hour at his organic rice packaging plant. He does this even though the market r

ate for this type of work is only $12.50 per hour. What economic explanation can you give for this?
Business
1 answer:
nydimaria [60]3 years ago
8 0

Answer:

In my opinion Jack believes in the efficiency wage theory. This theory states that an increase in wages will increase labor productivity, lower staff turnover and attract the best possible employees.

So when Jack increases his employees' salaries, their increased productivity will recoup the extra labor costs. At the end, Jack believes his profit will increase because of the higher wages he pays.

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Lois and Peggy are the only two accountants at a construction company. They split the accounting work in the company according t
Lapatulllka [165]

Answer:

Job sharing

Explanation:

Job sharing is a sort of adaptable work course of action in which two individuals work to finish the work one individual would do in a self-contained all day job. In job-sharing agreement, two people handle work, and they share salaries. Hours can change: They may cooperate some portion of the week, and they may never observe one another.

5 0
3 years ago
Sue and Neal are twins. Sue invests $5,000 at 7 percent when she is 25 years old. Neal invests $5,000 at 7 percent when he is 30
dolphi86 [110]

Answer:

Sue will have more money than Neal as long as they retire at the same time

Explanation:

Both Neal and Sue invest the same amount ($5,000) at same interest rate (7%). In the compound interest rate formula only the time is differ. When they retire at age 60, Sue has 5 years more than Neal meaning Sue earn more interest than Neal.

3 0
3 years ago
A decrease in the interest rate results in:______.
rjkz [21]

Answer:

3. a smaller opportunity cost of investment and so planned investment spending increases.

Explanation:

Opportunity cost is defined as the foregone alternative when a person undertakes an activity. For example going to work is the opportunity cost of staying at home to rest.

Opportunity cost is weighed against activity to be undertaken.

In this instance the opportunity cost of investment is the alternative foregone by investors.

As interest rate decreases it makes investment attractive because the cost of doing business decreases. This make other alternatives less attractive (smaller opportunity cost).

Investment now increases.

The monetary regulation agencies use interest rate a tool to either boost or reduce investment. The higher the interest rate th lower investment, and vice versa

6 0
3 years ago
The condition which states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of t
lukranit [14]

Answer:

The condition which states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of the domestic currency is called <u>Interest Rate parity</u>

Explanation:

The interest rate parity condition explains the relationship between domestic  and foreign interest rates, and also factoring in alongside the appreciation of the home or domestic currency.

Interest rate parity condition states that the difference in interest rate between two countries will be equal to the difference between their forward exchange rate and their spot exchange rate.

Therefore in very simple terms, interest rates are linked to exchange rates

6 0
4 years ago
Panache, a fashion design company, organizes an online contest. Participants are asked to design women’s apparel to be posted on
dimaraw [331]

Answer: Crowd sourcing

Explanation: In simple words, crowd sourcing refers to collection of data or opinions from a large number of internet users. These users often do this as freelancer or voluntary basis.

In the given case, Panache's contest to design women apparel would provide them with designs and a suitable employee for their company.

Hence, from the above we can conclude that the correct option is D.

3 0
3 years ago
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