As a result of moving more decision making from the center toward the periphery of the organization, typically
a. the flow of information to the decision maker that is relevant to the decision should be enhanced
b. the flow of information from the decision maker that is relevant to the decision should be enhanced
c. the incentives to make good decisions should be strengthened
d. the procedures for the flow of information that is relevant to the decision can be relaxed
d
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_____ refers to actions that one party in a transaction takes based on his private information and that affect the payoff to the other party
A) Negative externalities B) Moral hazard C) Positive externalities D) Bargaining
If there are human capital externalities, then
A) human capital should be taxed. B) convergence in per capita incomes occurs. C) differences in human capital across countries can persist. D) pollution is a problem.