What are some of the demerits of decentralization?
What will be an ideal response?
Local managers may have incentives to maximize their own utility as opposed to the firm's profits. Therefore, they might act in ways to jeopardize the team's value-creating capabilities. To prevent this, one must undertake direct monitoring or develop a clever compensation mechanism. But these are usually difficult and costly.
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High-skilled workers earn more than low-skilled workers in part because
A) high-skilled workers have higher value of marginal products. B) of government legislation. C) the supply of high-skilled workers is more elastic. D) the demand for high-skilled workers is more elastic.
A budget deficit occurs when government receipts fall short of government spending
a. True b. False Indicate whether the statement is true or false