When a manager's bonuses are tied to multiple unrelated performance measures
a. we typically see the manager miss all goals by about the same amount
b. we typically see the manager greatly exceeding some goals while missing others altogether
c. we typically see the manager just meeting some goals while missing others by a wide margin
d. we typically see the manager indifferent to the goals
QUESTION 2Social insurance
a. is the basis for most government redistribution programs.
b. is usually community-rated with premiums based on ability to pay.
c. is the basis of the provision of medical care to the poor, elderly, and other vulnerable population groups in the U.S.
d. requires mandatory participation to be effective.
e. all of the above.
QUESTION 3If preferences are one-dimensional and preferences are single peaked, majority rule will result in selection of the project most favored by:
a. no one.
b. the median voter.
c. the average voter.
d. everyone.
QUESTION 4As a result of moving more decision making from the periphery of the organization toward the center, typically
a. the flow of information to the decision maker that is relevant to the decision can be weakened
b. the flow of information from the decision maker that is relevant to the decision should be enhanced
c. the incentive structure for the decision maker should be strengthened
d. the incentive structure are usually already in place
QUESTION 5Indemnity insurance
a. reimburses for certain types of losses including fire and theft.
b. in the basis for most of the health insurance coverage in the U.S.
c. is often experience-rated with premiums based on expected losses.
d. is sometimes called casualty insurance..
e. all of the above.
QUESTION 6Condorcet's Paradox occurs when:
a. majority rule voting cycles among alternatives.
b. majority rule voting results in decisions that are not Pareto optimal.
c. point voting yields indeterminate results.
d. point voting results in decisions that are not Pareto optimal.
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