As 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 should be strengthened
d. the incentives to make good decisions should be weakened
QUESTION 2When MR
a. Demand is flat
b. Demand is upright
c. Demand is elastic
d. Demand is inelastic
QUESTION 3When decision rights are decentralized, typically
a. decisions are being moved to those with more of the relevant information
b. decisions are being moved to those with stronger incentives to make good decisions
c. decisions are being moved from those with more of the relevant information
d. decisions are being moved from those with weaker incentives to make good decisions
QUESTION 4As the price of dvds is raised from 3 to 5, their quantity demanded fell from 200,00 . to 180,000 . The elasticity of demand of dvds is:
a. 0.21
b. 1.28
c. 3.52
d. .65
QUESTION 5When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information
b. decisions are being moved to those with stronger incentives to make good decisions
c. decisions are being moved away from those with more of the relevant information
d. decisions are being moved to those with weaker incentives to make good decisions
QUESTION 6If your income goes down by10 and, in response, the quantity demanded of good x falls by 20, the income elasticity of demand would be:
a. 2
b. 4
c. .5
d. .20
QUESTION 7When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information
b. decisions are being moved from those with stronger incentives to make good decisions
c. decisions are being moved from those with more of the relevant information
d. decisions are being moved from those with weaker incentives to make good decisions
QUESTION 8The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have
a. An inelastic demand
b. An elastic demand
c. A demand curve that is upward sloping
d. Unitary elastic demand curve
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