Resolving Adam Smith's Diamond-Water Puzzle Involves

question 96

Multiple Choice

Resolving Adam Smith's diamond-water puzzle involves

• A)realizing that price is not directly related to total utility.
• B)knowing that at optimal purchase, price will tend to equal marginal utility.
• C)knowing that, as increasing quantities of a good are consumed, marginal utility diminishes and, conversely, consuming a small quantity of a good produces high marginal utility.
• D)All of the above are correct.

Recognize the role of job analysis in performance management.

Appreciate the benefits and limitations of different appraisal feedback techniques.

Understand the impact of goal setting on employee performance improvement.

Understand the principles of capital budgeting.

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Definitions:

Foot-In-The-Door

A persuasion technique where the persuader requests a small initial favor in hopes of making the person more likely to agree to a larger favor later.

Stereotype

A set of characteristics that people believe is shared by all members of a particular social category; a concept held about a person or group of people that is based on superficial, irrelevant characteristics.

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.

Cognitions

Refers to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.