One in the News Feature Reports That General Motors Planned

question 98

Multiple Choice

One In the News feature reports that General Motors planned to essentially quit making cars and trucks in the United States for nine weeks from mid-May through July 2009 and Dell planned to close one of its Texas computer-manufacturing plants.Based on these particular news clips,what is the difference between GM's and Dell's decisions?

• A)Dell was trying to get rid of excess inventory,and GM was trying to become more efficient.
• B)GM was trying to maximize profits while Dell was trying to minimize losses.
• C)GM's decision to idle plants was a short-run shutdown decision.Dell,by contrast,made a long-run decision to exit a specific market.

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Definitions:

Realistic Conflict Theory

Sherif’s theory of intergroup conflict that explains intergroup behaviour in terms of the nature of goal relations between groups.

Superordinate Goals

Goals that both groups desire but that can be achieved only by both groups cooperating.

Sherif

Refers to Muzafer Sherif, a social psychologist known for his work on group norms, social influence, and the Robbers Cave Experiment.

Commons Dilemma

Social dilemma in which cooperation by all benefits all, but competition by all harms all.