Several Students Sitting Together in a Student Lounge Studying for an Exam

question 41

Multiple Choice

Several students sitting together in a student lounge studying for an exam may BEST be defined as a study group based on which organizational rule?

• A)rule of similarity
• B) rule of contrast
• C) rule of proximity
• D)rule of context

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Definitions:

Economic Inefficiency

A situation in which resources are not allocated optimally, leading to wastage or less than maximum output.

Insurance Markets

Markets where individuals and entities can purchase insurance products to protect against various types of risk.

Principal-Agent Problem

A dilemma in economics where one party (the agent) is expected to act in the best interest of another (the principal), but may have personal incentives that conflict with this duty.

Managers

Individuals in an organization responsible for directing the efforts of others and overseeing business operations to achieve certain goals.