The choice between specialized and broad task assignments depends on
A. the principle of separation of decision management and control.
B. politicking and other influencing activities carried on within an organization.
C. technological, informational, and incentive issues.
D. the principle of comparative advantage to increase the output level.
Answer: C
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Suppose that the central bank increases interest rates in an economy. How would this affect aggregate demand and inflation?
A) Aggregate demand would fall and inflation would rise. B) Aggregate demand would fall and inflation would fall. C) Aggregate demand would rise and inflation would rise. D) Aggregate demand would rise and inflation would fall.
Suppose that Rockport Shoes planned to produce and sell $200 million of shoes in 2003, but by year's end was able to sell only $180 million. The remaining unsold $20 million would be recorded as
a. personal consumption expenditures b. a business loss c. an addition to business inventory d. an increase in disposable income e. a part of the underground economy