Refer to Scenario 3

question 141

Multiple Choice

Refer to Scenario 3.1 below to answer the questions that follow.
SCENARIO 3.1: Rented DVDs and movies shown in theaters are substitutes. Rented DVDs and plasma TVs are complements. Plasma TVs and movies shown in theaters are normal goods. People watch rented DVDs more often in the winter than in the summer.
-Related to the Economics in Practice on page 50: The Amazon Kindle and the electronic textbooks available for the Kindle are complementary goods. Electronic textbooks and traditional, hard-copy textbooks are substitute products. If the price of electronic textbooks for the Kindle decreases,

• A) demand for the Kindle increases, demand for electronic textbooks increases, and demand for traditional, hard-copy textbooks decreases.
• B) the quantity of Kindles demanded increases, demand for electronic textbooks increases, and the quantity of traditional, hard-copy textbooks demanded decreases.
• C) demand for the Kindle decreases, the quantity of electronic textbooks demanded increases, and demand for traditional, hard-copy textbooks decreases.
• D) demand for the Kindle increases, the quantity of electronic textbooks demanded increases, and demand for traditional, hard-copy textbooks decreases.

Differentiate between formal and informal groups and their impacts on organizational performance.

Explain the concept of social loafing and its opposite, social facilitation, in team dynamics.

Recognize the potential drawbacks of self-managing teams and strategies to mitigate these issues.

Understand the structural and personal factors that contribute to organizational conflict.

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Definitions:

Cognitive Ability

The capacity of an individual to perform mental processes of understanding, reasoning, problem solving, and decision making.

Motivation-Performance Relationship

The dynamic link between an individual's level of motivation and their subsequent performance in tasks or activities.

Achievement

The accomplishment of a goal or the attainment of success or proficiency in a skill, often recognized through awards or other forms of acknowledgement.

Performance Feedback

Providing quantitative or qualitative information on past performance for the purpose of changing or maintaining performance in specific ways.