According to the Contingency Framework for Decision Models, the Carnegie

question 37

Multiple Choice

According to the contingency framework for decision models, the Carnegie Model for organizational decision making should be used when:

• A) there is high uncertainty in both problems and solutions and uncertain problems and certain solutions.
• B) managers agree on goals and look for optimal solutions.
• C) decisions are nonprogrammable and can be made by an individual.
• D) all of these--the Carnegie Model should be used in every cell of the framework.

Identify the roles of households and businesses within the circular flow model.

Recognize the inherent problems and inefficiencies of centrally planned economies, including the incentive and coordination problems.

Grasp the concept of the "invisible hand" and its implications for promoting societal interests through individual self-interest.

Distinguish between different economic systems (market system, command system) and their characteristics.