Which of the Following Selection Devices Is Popular,but Not Universally

question 36

Multiple Choice

Which of the following selection devices is popular,but not universally utilized internationally?

• A)interview
• B)psychological tests
• C)application form
• D)former employer reference check

Identify the effects of external costs and benefits on market efficiency.

Recognize the free-rider problem and its implications for the provision of public goods.

Analyze how markets respond to externalities and their impact on optimal output levels.

Understand the government's role in providing public goods and addressing market failures.

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Definitions:

Decision Control

Those aspects of the decision process in which managers either ratify or monitor decisions.

Free Rider

An individual who benefits from resources, goods, or services without paying for them, leading to an economic problem in public goods and services provision.

Agency Problem

A conflict of interest inherent in any relationship where one party is expected to act in another's best interests.

Horizon Problem

A situation where the time horizon for decision making by managers is shorter than the long-term interest of the company, often due to differing objectives.