The Grapevine in an Organization

question 68

Multiple Choice

The grapevine in an organization

• A)is typically no more or less accurate than other channels.
• B)serves no necessary purpose; thus, managers should work to eliminate it.
• C)passes a message in single file from person to person until it finally reaches the end of the line.
• D)has a single, consistent source.

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Definitions:

Consumer Surplus

The disparity between the amount consumers are prepared to spend on a product or service and the amount they end up paying, indicating the advantage to consumers.

Allocative Efficiency

A state of the economy in which the distribution of resources among different uses is optimized, leading to an optimal level of consumer satisfaction.

Productive Efficiency

A situation in which an economy or entity is operating at maximum capacity, producing goods or services at the lowest possible cost.

Long-Run Equilibrium

A state in economics where all factors of production and outputs in an industry or market adjust fully to any changes, leading to a stable condition where no participant has an incentive to change behavior.