Missy Knowles is in charge of all technical developments at Gumby Polymer Rubber. She makes all the choices concerning product innovations in the company. She finds that she is overworked and that several of her research chemists seem to be spending work hours playing golf. What managerial advice would you provide to Gumby Polymer Rubber (GPR)? Clearly explain your reasoning.
What will be an ideal response?
By centralizing decision rights, she is overworked while the scientists are not working. The scientists may have specific information about technical matters and rubber innovation that may be used for the good of GPR if some decisions were decentralized. In addition to changing decision rights, Knowles should also revisit the reward and evaluations systems for scientists. They are currently acting as if their compensation is completely unrelated to their productivity (or the lack of it) or even whether they are physically in the lab or on a golf course.
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A) 2 paintings and 3 sculptures B) 5 sculptures only C) 10 paintings only D) 3 paintings and 5 sculptures
Damian is texting while driving and ends up slamming into the back end of the car in front of him, which then strikes the car in front of it. By texting while driving, Damian has created a
A. negative externality. B. positive externality. C. nonexcludable public good. D. marginal social benefit.
Commercial banks differ from credit unions in the following way:
A. commercial banks cannot make auto loans to individuals, just to businesses while credit unions can do both. B. credit unions focus on consumer loans while commercial banks primarily make loans to businesses. C. credit unions make loans and accept deposits while commercial banks just make loans. D. credit unions do not have to hold reserves while commercial banks do.
A policy mix of an expansionary fiscal policy and a contractionary monetary policy would cause
A) output to decrease and interest rates to decrease. B) output to decrease and interest rates to increase. C) output to decrease and interest rates to either increase, decrease, or remain unchanged. D) output to either increase, decrease, or remain unchanged and interest rates to increase.