The parent company would want to reward managers based on division revenues because
a. It decreases the incentives for the managers to make good decisions for their division
b. It increases the incentives for the managers to make good decisions for their divisions
c. It does not change the motivations for the managers
d. None of the above
b
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A country will likely experience an increase in poverty if
A) its population decreases over time. B) its real GDP per person growth rate increases over time. C) it does not receive foreign aid. D) its inflation rate decreases or slows over time. E) its real GDP growth rate decreases or slows over time.
George Herman (Babe) Ruth was a superb baseball player, both an excellent pitcher and a record-breaking batter
Other members of the New York Yankee team, who were not as competent pitchers as Ruth, nonetheless had a comparative advantage over Ruth in pitching because A) Ruth was such a competent batter. B) the owners of the Yankees were more interested in monetary profits than in winning baseball games. C) the price system failed to provide adequate information and incentive. D) they were allowed to pitch more often and practice increased their productivity. E) too many players preferred batting to pitching.