If a senior manager wishes to see her proposal win support, then she should:
A. likely to design a proposal that can be modified easily.
B. design a proposal that will yield high returns if successful.
C. wait for the CEO to change the organizational architecture.
D. wait for the senior management to ask for her proposal.
Answer: A
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Economies of scope exist when
A) the total cost of production falls as the output increases. B) a firm hires specialized resources to produce a range of goods and services. C) a firm uses outsourcing to produce a good or service. D) the cost of producing a unit of a good falls as its output increases.
The "official measure" of the deficit (the one reported by the government)
A) tells us the change in government nominal debt. B) is equal to nominal interest payments on the debt plus the primary deficit. C) overestimates the real budget deficit whenever the inflation rate is positive. D) all of the above E) none of the above