Mike Morrell Is a Production Supervisor in Porco Rosso, an Aircraft

question 102

Multiple Choice

Mike Morrell is a production supervisor in Porco Rosso, an aircraft manufacturing firm. After evaluating Mike's managerial capabilities, some members of the senior management feel that average productivity would improve if more workers are assigned to him. However, some managers are skeptical about Mike's ability to handle more workers.
-Which of the following statements, if true, would weaken the argument favoring increased span of control?

• A) Market trends indicate that the demand for aircraft is expected to increase substantially over the next few years.
• B) Performance reports from the last few years show that teams that were monitored closely had higher productivity.
• C) Porco Rosso recently launched its latest engine model, the PR-4.
• D) When additional workers were assigned to Mike on a previous occasion, it had led to favorable and productive results.
• E) Mike has a reputation of handling interpersonal conflicts effectively.

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Definitions:

Quasi-Public Goods

Goods that are not fully non-excludable or non-rivalrous, falling between pure public goods and private goods, often provided by the government.

Negative Externalities

Unintended adverse effects of a transaction that impact third parties who are not part of the transaction.

Economic Efficiency

A situation in which all available resources are utilized in the most effective way possible, maximizing the production of goods and services without waste.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures.