In organizational design issues, decision rights pertain to
a. the legal workplace related rights of employees
b. the regulations governing how a potential customer chooses which product to purchase
c. the set of decisions that go with a particular position within the firm
d. who gets to decide from which place co-workers will order lunch
c
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What economic variables would you need to consider in order to distinguish between a developing country with a short-term balance of payments problem and one in a debt crisis? Explain what data you would need to look at and why
What will be an ideal response?
What happens to the equilibrium price and quantity in the market for science fiction novels, a normal good, when income increases and a new technology is invented, making it easier to publish books.
a. Quantity and price both increase. b. Quantity and price both decrease. c. Quantity will increase and the price change is ambiguous. d. Price will decrease but the quantity change is ambiguous.
Which statement about changes in the discount rate is true?
a. The discount rate is usually set lower than the federal funds rate to encourage borrowing. b. The discount rate is rarely changed because it has a huge impact on the money supply. c. The Fed can raise the discount rate to increase the money supply. d. Changes in the discount rate are seen as a signal of the Fed’s monetary policy intentions.
Suppose policy makers implement an unexpected fiscal expansion. Further assume that monetary policy is expected to keep interest rates constant in response to this unexpected fiscal expansion. Given this information, we would expect that
A) stock prices will rise. B) stock prices will remain constant. C) this policy will have an ambiguous effect on stock prices. D) the effect on stock prices will depend on the slope of the IS curve.