The Exception Principle Does Not Always Work Well in a Bureaucracy

question 19

True/False

The exception principle does not always work well in a bureaucracy, because there are strong pressures against transmitting bad news to superiors in the hierarchy.

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Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option when making a decision or selection.

Comparative Advantage

The capacity of an entity to generate a product or service with a smaller opportunity cost than others.

Absolute Advantage

The capacity of an entity to manufacture a product or provide a service more effectively than its rivals, by utilizing fewer resources.

Comparative Advantage

A principle in economics that asserts a country's ability to produce a good at a lower opportunity cost compared to another country, fostering global trade efficiency.