Your Classmates from the University of Chicago Are Planning to Go

question 84

Multiple Choice

Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?

• A)No, your economic surplus would be -$50.
• B)No, your economic surplus would be -$100.
• C)Yes, your economic surplus would be $50.
• D)Yes, your economic surplus would be $400.

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Definitions:

Organizational Effectiveness

The degree to which an organization achieves its goals and objectives with the resources available.

Modified Routines

Adjusted or altered schedules or methods of operation to improve efficiency or accommodate specific needs.

Inertia

The tendency to remain in a current state or resist change, often used in the context of organizations or physical objects.

Organizational Change

The process through which companies undergo transformations in their structures, strategies, processes, or cultures.