Which of the following is a characteristic feature of economic contraction?
A) decreased unemployment rates
B) decreased consumer spending
C) increased income
D) increased employment
E) increased demand
Answer: B
Explanation: During an economic contraction, spending declines, employment drops, and the economy as a whole slows down.
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In Chapter 1, Figure 1-4 shows the factors that influence the design of AIS. The diagram shows a bi-directional arrow between the organizational culture and the AIS. The reason for this two-way interchange between organizational culture and AIS is
A) that the AIS should not influence the values of the organizational culture. B) because the organization's culture influences the AIS, and likewise the AIS influences the organization's culture by controlling the flow of information within the organization. C) due to the transfer of managers between the two corporate elements. D) the AIS impacts the organization's key strategies.
Suboptimization occurs when
A) a division or functional unit views itself as a separate entity and refuses to cooperate with other divisions or units to the detriment of the organization as a whole. B) there is a failure to produce at or near full capacity. C) individuals are placed into positions not suited to their abilities. D) managers tend to focus more of their attentions on those aspects which are measurable than on those which are not. E) managers concentrate too much on short-term performance objectives.