When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information
b. decisions are being moved to those with stronger incentives to make good decisions
c. decisions are being moved to those with more of the relevant information
d. decisions are being moved from those with weaker incentives to make good decisions
c
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Maurice Allais, Reinhard Selten, and Vernon Smith all were awarded the Nobel Prize in Economics in part because
A) they proved that external economies would lead to market failure. B) of their work on the substitution and income effects of price changes. C) of their work with experimental economics. D) they discovered the first example of a Giffen good.
The utilitarian justification for redistributing income is based on the assumption of diminishing marginal utility
a. True b. False Indicate whether the statement is true or false
The ultimate authority of a corporation Belongs to the
A. CEO.
B. Board of directors.
C. CFO.
D. None of these choices are correct.
Normative economics
A. answers the question "What is?" B. predicts the consequences of alternative actions. C. answers the question "What ought to be?" D. is the focus of most modern economic reasoning.