Suppose That the Government Finds a Major Defect in One

question 21

Multiple Choice

Suppose that the government finds a major defect in one of a company's products and demands that it be taken off the market. Which of the following would we expect?

• A)The supply of the stock and the price will both rise.
• B)The supply of the stock and the price will both fall.
• C)The demand for the stock and the price will both rise.
• D)The demand for the stock and the price will both fall.

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Definitions:

Differentiation

The process or strategy of making a product, service, or organization distinct from competitors in the eyes of consumers.

Departmentalizing

The process of dividing an organization into different departments, which allows for specialization of tasks and easier management.

Job Enlargement

An approach to job design that increases the number of different tasks in a job to reduce monotony and improve employee satisfaction.

Scientific Management

A management theory that analyzes and synthesizes workflows with the primary goal of improving economic efficiency, especially labor productivity.