Organizational Inertia Refers to the Tendency of an Organization to ________

question 54

Multiple Choice

Organizational inertia refers to the tendency of an organization to ________.

• A) increasing the number of products produced so as to take advantage of economies of scope
• B) increase the diversity of its workforce
• C) decrease cost of production by using economies of scale
• D) resist change and maintain the status quo

---

Definitions:

Prices

The amount of money required to purchase goods or services, which can fluctuate based on demand, supply, and other economic factors.

Price Level

A measure of the average prices of goods and services in an economy at a specific time, indicating the cost of living or inflation rate.

Real Output

The total quantity of goods and services produced in an economy, adjusted for price changes or inflation, indicating the true growth in an economy’s production.

The General Theory of Employment, Interest, and Money

A seminal work by John Maynard Keynes that laid the foundation for Keynesian economics and the study of macroeconomics.