You Are the President of a Large Company and You

question 53

Multiple Choice

You are the president of a large company and you are interested in making some changes to the way that the company runs.You would like to see some creativity in administrative processes,rather than simply continuing the way things have always been done.What should you do

• A) Hire new managers from outside the company, because the existing managers are vulnerable to the effects of mental set. 
• B) Encourage retired managers to come back temporarily, because experienced managers would be less vulnerable to the effects of mental set. 
• C) Promote young employees to positions of power, because young adults are more likely to take advantage of functional fixedness. 
• D) Hire more women for management positions, because women are less vulnerable to functional fixedness.

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Definitions:

Discount Rate

The interest rate on the loans that the Fed makes to banks.

Re-Elected

The act of being elected again for the same position or office after completing a term.

Short-Run Phillips Curve

An economic model suggesting an inverse relationship between the rate of inflation and the unemployment rate in the short term.

Sacrifice Ratio

The measure of the decline in a country's economic output as a result of efforts to reduce inflation.