Veeam VMCE2021

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VMCE 2021

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Bonnie's work performance has diminished over the last 2 weeks. In addition, she has uncharacteristic mood swings and has exhibited difficulty concentrating. She is also having difficulties with tardiness and attendance. As her supervisor, you meet with Bonnie to discuss your concerns. She reveals that she is struggling financially. What action should you take?
A. Refer her to the Employee Assistance Program.
B. Put her on probation.
C. Terminate her.
D. Tell her that as long as she can perform her job acceptably, her personal life is none of your concern.
Answer: A

If a 10 percent decline in airfares leads to a 5 percent increase in total expenditures on air travel, the price elasticity of demand for air travel in this range must be
A. inelastic.
B. elastic.
C. 0.5.
Answer: B
Since a price decline led to an increase in total expenditures on air travel, the demand for air travel must be elastic. This is because elastic demand implies that a 10 percent decline in price will lead to a greater than 10 percent increase in demand. Thus, under elastic demand and a price decline, total expenditures are expected to rise.

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