A Group Is Trying to Decide How to Spend Government

question 16

Multiple Choice

A group is trying to decide how to spend government aid. The group asks outside experts to come in and give their opinion. The manager decides that she thinks the first expert had great points and she lets all group members know that she supports that option. Everyone agrees with her, but she has a sinking suspicion that this is only because she will soon be determining who is getting bonuses. She is worried that there might be flaws with the chosen option. In the future, she could BEST avoid the possibility of groupthink by ________.

• A) gathering information from inside sources only
• B) suggesting her subordinates be less critical of the alternatives
• C) punishing any members who act like a devil's advocate
• D) refraining from giving her opinion until everyone has expressed their view

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Definitions:

Purely Competitive Market

A market structure characterized by many buyers and sellers, all of whom sell identical products, which results in the agents having no control over prices.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.

Average Fixed Cost

Production costs that stay unchanged with output levels, split by the amount of produced output.

Total Revenue

The cumulative revenue a business earns from its sales or service provisions in a given timeframe.