In the Context of the Arguments That Have Been Proposed

question 65

Multiple Choice

In the context of the arguments that have been proposed on how diversity contributes to competitiveness, the cost argument suggests that organizations that learn to cope with diversity will:

• A) generally have higher levels of productivity and lower levels of turnover and absenteeism.
• B) become known among women and minorities as good places to work.
• C) be able to understand different market segments better than will less diverse organizations.
• D) generally be more creative and innovative than will less diverse organizations.

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Definitions:

Market Failure

Occurs when the allocation of goods and services by a free market is not efficient.

Free-rider Problem

A situation in public economics where individuals consume a good without paying for it, leading to underproduction or depletion of the good, as seen often in public goods and common resources.

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not diminish its availability to others.

Nonexclusion

A characteristic of certain goods where it is difficult or impossible to exclude individuals from using the good, often leading to issues with free riders.