Froeb Ch. 1-4 Exam Questions With Correct Answers.
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Froeb
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Froeb
Froeb Ch. 1-4 Exam Questions With Correct
Answers.
Tips to help solve managerial problems include - answerthinking about solutions that get the
decision maker to further the organization's goals.
The rational actor paradigm does not assume that people behave - answercreatively
Strategy by an a...
Froeb Ch. 1-4 Exam Questions With Correct
Answers.
Tips to help solve managerial problems include - answer✔thinking about solutions that get the
decision maker to further the organization's goals.
The rational actor paradigm does not assume that people behave - answer✔creatively
Strategy by an auto repair shop to recommend a necessary repairs - answer✔Will backfire if this
becomes public knowledge
Asking each of the following questions is a useful for isolating the source of managerial
problems except:
Does the decision maker have enough information to make a good decision
Who is making the decision?
Is the organization profitable?
Does a decision maker have the incentive to make a good decision? - answer✔Is the organization
profitable?
Subjects related to managerial economics that have come up on actual job interview questions
(according to the end of chapter 1) include - answer✔Transfer pricing, signaling in compensation
offers, sunk costs
Possible solutions to managerial problems include all of the following except
Giving more information to the current decision maker
Assigning the decision making responsibilities to someone else
Changing the current decision makers work location
Change in the current decision makers incentives - answer✔Changing the current decision
makers work location
The rational-actor paradigm is useful for - answer✔1.analyzing behavior that has already
occurred.
2.teaching us to anticipate opportunistic behavior.
3.designing organizations that are less susceptible to opportunistic behavior
Why might a "bonus cap" for executives be a bad policy - answer✔It might discourage work
effort once the cap is reached
When considering the organizational design applications of a mistaken decision, the goal is to -
answer✔Alter the decision making process to avoid similar mistakes in the future
When assessing the trade-offs involved in changing organizational design - answer✔Costs
include having to restructure how business is conducted
When I well functioning market is in equilibrium, - answer✔Total surplus is maximized without
government intervention
A price ceiling - answer✔Equivalent to a tax on producers and a subsidy to consumers
If you're willing to sell your landscape business for $620,000 and someone offers you $680,000
for it, this transaction will generate - answer✔$60,000 of sellers surplus and an unknown amount
of buyer surplus
Wealth generating transactions typically - answer✔Increase total surplus
Do US government prohibition on the selling of kidneys (at prices above zero) - answer✔Leads
to the formation of secondary market for buying and selling kidneys
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