Which of the Following Is Correct with Respect to the Concepts

question 223

Multiple Choice

Which of the following is correct with respect to the concepts of certainty, risk, and uncertainty?

• A) The majority of managerial decisions are made under conditions of certainty.
• B) In a situation of risk, the alternatives are known, but costs are simply probabilities.
• C) In a situation of uncertainty, the manager knows the alternatives that are available, but not the outcomes that will result from a specific alternative.
• D) There is very little difference between the conditions of risk and uncertainty because in both the outcome is unclear.
• E) Under a condition of certainty, profits are guaranteed.

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Definitions:

Public Sector

The portion of an economy that is controlled by the government, including various government services and enterprises.

Unionized

Pertains to workers who are members of a union, which negotiates collective bargaining agreements.

Monopsonist

A market condition where there is only one buyer for a product or service, giving them greater control over prices.

Labor Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor workers are willing to supply.