If Employees Conform to the Economist's View of Behavior, Managers

question 16

Multiple Choice

If employees conform to the economist's view of behavior, managers will be most effective if they can:

• A) influence the costs and benefits of employee actions.
• B) improve employee satisfaction with the job.
• C) communicate goals and objectives effectively to their employees.
• D) fire bad employees.

---

Definitions:

Moral Hazard

A situation where one party is more likely to take risks because another party bears the consequences of those risks.

Specific Purpose

A clearly defined and precise goal or objective that a project, action, or entity aims to achieve.

Market Signaling

Actions taken by buyers and sellers to communicate quality in a world of uncertainty.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, and habits.