As a result of moving more decision making from the periphery of the organization toward the center, typically
a. the flow of relevant information to the decision maker can be weakened
b. the flow of relevant information from the decision should be enhanced
c. the incentive structure for the decision maker should be strengthened
d. incentive compensation at the periphery can be weakened
d
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Most economists today believe that the Phillips curve is
A. vertical in the short run but downward sloping in the long run. B. upward sloping in the short run but vertical in the long run. C. downward sloping in the short run but vertical in the long run. D. vertical in the short run but upward sloping in the long run.
If the relationship between the monetary aggregate and the goal variable is weak, then
A) monetary aggregate targeting is superior to exchange-rate targeting. B) monetary aggregate targeting is superior to inflation targeting. C) inflation targeting is superior to exchange-rate targeting. D) monetary aggregate targeting will not work.
Scalping and other black market activities arise when
A) the prices of goods are allowed to adjust to their equilibrium levels. B) the quantities of goods demanded and supplied are allowed to adjust to their equilibrium levels. C) the prices of goods are restricted to levels above equilibrium prices. D) the prices of goods are restricted to levels below equilibrium prices.
Does government intervention guarantee provision of the socially optimum quantity of a public good? Explain