Critical Thinking Questions (Multiple Choice) as a Manager, You Need

question 30

Multiple Choice

Critical Thinking questions (Multiple Choice) As a manager, you need to make a decision on the inventory re-ordering. You also would like to find out why there have been continued inventory shortages. What type of report will you request from your department to make this decision?

• A) A scheduled report
• B) An ad hoc report
• C) A summary report
• D) An exception report

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Definitions:

Expansionary Gap

A situation where the actual output of an economy exceeds the potential output, often leading to increased inflation.

Self-correction

The process by which market mechanisms adjust to eliminate economic imbalances, leading to the restoration of equilibrium without external intervention.

Real Wages

Wages adjusted for inflation, reflecting the true purchasing power of income earned from labor.

Expansionary Gap

An economic situation characterized by output exceeding the economy's long-term sustainable levels, often leading to inflationary pressure due to high demand.