When Rita (The Owner of a Local Store) Makes Demands

question 32

Multiple Choice

When Rita (the owner of a local store) makes demands of her subordinates (workers) , they listen and follow through. In her working environment, Rita practices _____.

• A) bureaucracy
• B) assumed authority
• C) charismatic authority
• D) domination

---

Definitions:

Higher-Cost Producers

Firms that incur greater expenses in the production of goods or services compared to their competitors, often due to inefficiencies or higher input costs.

Invisible-Hand Concept

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individuals' pursuit of self-interest leads to beneficial outcomes for society.

Self-Interest

The focus on actions or activities that are advantageous to an individual or organization.

Public Interest

The welfare or well-being of the general public, often considered as a guiding principle for governmental policy.