Which of these is a drawback of forming an internal reference group and using the group average to assess normal performance?
A. Explicit employee collusion that tends to hold down the benchmark.
B. Shirking among supervisors.
C. Forced distributions
D. High influence cost incurred by employees
Answer: A
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Use the diagram of two product supply curves to answer the following question.
The diagram indicates that
A. over range Q1Q2 price elasticity of supply is the same for the two curves. B. over range Q1Q2 price elasticity of supply is greater for S2 than for S1. C. over range Q1Q2 price elasticity of supply is greater for S1 than for S2. D. not enough information is given to compare price elasticities.
A black market can emerge for a good if ________
A) the good is taxed heavily B) there is an excess supply of a good C) the consumption of the good is subsidized D) the production of the good is subsidized
Consider the hypothetical supply and demand of Kidneys.
Initially, kidneys are exchanged by donations only (price=0). If the government decides to legalize kidney sales and the market reaches equilibrium, then:
A. total surplus increases.
B. consumer surplus remains the same.
C. producer surplus remains the same.
D. a shortage of kidneys will arise.
Consider an economy in which all labor markets are perfectly competitive, all workers are equally able to do any job, and the nonwage attributes of all jobs are equally attractive to all workers. Which of the following would occur in a labor market where the current wage rate exceeds wage rates in alternate markets?
a. Labor demand will decrease, and the equilibrium wage rate will fall. b. Labor demand will increase, and the equilibrium wage rate will fall. c. Labor demand will increase, and the equilibrium wage rate will rise. d. Labor supply will decrease, and the equilibrium wage rate will rise. e. Labor supply will increase, and the equilibrium wage rate will fall.