Mumford Et Al

question 73

Multiple Choice

Mumford et al.'s model is characterized as a capability model because

• A) It identifies leader traits that followers perceived as valuable
• B) It identifies behaviors leaders use that are value-added in the workplace
• C) It examines the relationship between knowledge and skills and leader performance
• D) It implies leadership is reserved for a gifted few who are knowledgeable about the work

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Definitions:

Incentive Compatibility

A concept in mechanism design that ensures the strategies that maximize participants' payoffs also lead to outcomes desired by the mechanism's designer.

Consumers Budget Constraint

A consumer's budget constraint represents the combination of goods and services they can afford with their income and prices.

Adverse Selection

A situation in economic theory where information asymmetry results in high-risk individuals being more likely to apply for insurance or credit, potentially leading to market failure.

Insurance

A financial product that provides protection against potential future losses or damages to individuals or property.