As a result of moving more decision making from the periphery of the organization toward the center, typically
a. the flow of relevant information to the decision maker can be weakened
b. the flow of relevant information from the decision should be enhanced
c. the incentive structure for the decision maker should be strengthened
d. incentive compensation at the periphery can be weakened
QUESTION 2For complements, cross price elasticity of demand is:
a. Negative
b. Positive
c. between zero and one only
d. zero.
QUESTION 3As a result of moving more decision making from the periphery of the organization toward the center, typically
a. the flow of relevant information to the decision maker should be enhanced
b. the flow of relevant information from the decision maker should be enhanced
c. the incentive structure for the decision maker should be strengthened
d. the incentive structure for the decision maker can be eliminated
QUESTION 4Jim has estimated elasticity of demand for gasoline to be 0.7 in the short-run and 1.8 in the long run. A decrease in taxes on gasoline would:
a. lower tax revenue in both the short and long run.
b. raise tax revenue in both the short and long run.
c. raise tax revenue in the short run but lower tax revenue in the long run.
d. lower tax revenue in the short run but raise tax revenue in the long run.
QUESTION 5As a result of moving more decision making from the center toward the periphery of the organization, typically
a. the flow of relevant information to the decision maker should be enhanced
b. the flow of relevant information from the decision maker should be enhanced
c. the incentives to make good decisions can be weakened
d. the reporting of information that is required to make the decision can be relaxed
QUESTION 6In 2011, Netflix raised prices on its DVDs and internet streaming plan. The Reed Hastings, CEO of Netflix, believes
a. Netflix is an industry leader thereby making the demand curve inelastic
b. Netflix is an industry leader thereby making the demand curve elastic
c. People are willing to pay more for the good
d. There are many substitutes to Netflix's products