A reason workers tend to receive fewer promotions than in the past is that: most firms now believe hiring people outside the organization is a better way to fill management positions because it brings in new blood. very few of today's supervisors and lower-level managers have the qualifications needed to move into higher management positions. the movement toward flatter organizational structures provides fewer opportunities to move upward. firms have found that promoting employees can create jealousy and resentment among the workers who are not promoted.

Susie buys two goods - rounds of golf and massages. suppose that the price of a round of golf is $20, and the price of a massage is $30. in a typical week susie will play two rounds of golf, getting 20 units of satisfaction from the second round. she normally buys three massages each week, with the third giving her 30 units of satisfaction. if she were to buy a fourth massage in a week, it would give her 20 units of satisfaction. if the price of massages is reduced to $15, which of the following outcomes might we expect to occur? a) susie would leave her consumption choices unchanged because of diminishing marginal utility in the consumption of massages. b) susie would buy more massages and more rounds of golf, as predicted by the substituion effect. c) susie would buy more massages and fewer rounds of golf, as predicted by the substitution effect. d) susie would buy more massage and fewer rounds of golf, as predicted by income effect.