Identify the Correct Statement Related to Objective and Subjective Performance

question 6

Multiple Choice

Identify the correct statement related to objective and subjective performance measures.

• A)Subjective measures are used in explicit formal contracts.
• B)Subjective measures induce dysfunctional behaviors while objective measures do not.
• C)Objective measures are more accurate than subjective measures.
• D)Objective measures can create incentives for gaming.

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Definitions:

Normative Statements

Statements that express value judgments or opinions about what ought to be rather than statements of fact.

Positive Theories

Positive theories attempt to describe how the world is, focusing on factual statements and cause-effect relationships without prescribing what actions should be taken.

Congressional Budget Office

The Congressional Budget Office is a federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.

John Maynard Keynes

A British economist whose theories on government intervention in economies (Keynesian economics) have greatly influenced modern economic policies.