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Economics Edited

The document discusses several economic concepts: 1) Most employees work primarily for a salary or wage as money is needed for survival. If a company cannot pay salaries, employees will likely seek work elsewhere. 2) Employers hire new employees when they believe those employees can help increase revenue and profits, such as by handling increased customer demand. 3) Whether an individual saves more or spends more when interest rates rise depends on factors like current savings, future expectations, and personal habits. Higher interest may encourage some to save more but others to spend if they already have savings.

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27 views3 pages

Economics Edited

The document discusses several economic concepts: 1) Most employees work primarily for a salary or wage as money is needed for survival. If a company cannot pay salaries, employees will likely seek work elsewhere. 2) Employers hire new employees when they believe those employees can help increase revenue and profits, such as by handling increased customer demand. 3) Whether an individual saves more or spends more when interest rates rise depends on factors like current savings, future expectations, and personal habits. Higher interest may encourage some to save more but others to spend if they already have savings.

Uploaded by

sanu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Economics

Student Name:

Student ID:

Author Note:
What is your incentive to work?

Getting a decent salary on time will be the incentive to work. The pay is the one for which all
the employees will work hard.

Would you continue to go to work if you were not being paid?

People need money to survive in this world. Most of the people who work in the organisation
are just working as because they don't have the other choice they need money. Therefore, if
the company is not able to pay a better salary or not paid at all, then it will be necessary for
the people to move out to another firm as they will able to pay. For me, it is required that if I
love what I am doing in this company, then I will consider staying at the company to the
company can pay me. If they are not then it will be better to move out.

Why did the employer hire you?

Most of the employees hire the people as they need more revenue than the present time. The
Marginal product revenue (MPR) helps the employer to see how many people can provide a
better outcome of their investment (Mankiw, 2015). For example, if the company is having
trouble in the generating revenue just because they cannot process the customer demand, it is
required to hire new employees to prepare more of the order of the customer. The employer
hires me because he thinks that I can able to handle the demand of the customer and provide a
better margin of their profit.

Would you save more or spend more if the interest on your bank account
increased?

It depends on the interest rate of the bank can have different effect on the various customers.
If the bank is providing the compound interest and it will be double the amount that I save in
the bank will able me to spend more. However, it depends on the habit of the consumer on
the number of factors like the current rate levels, the future rate changes and confidence. For
me, it will be a matter of time when the interest rate has gone high. If it has increased when I
do not have money, then I will prefer to save rather than spending money, however, if I do
have savings before I consider spending money.
Reference:

Mankiw, N. G. (2015). Ten principles of economics. Principles of Economics, 3-18.

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