The Tendency for a Group Decision to Be Riskier Than

question 34

Multiple Choice

The tendency for a group decision to be riskier than the average decision made by the individual group members is known as

• A)risk hedging.
• B)social loafing.
• C)risky shift.
• D)group polarization.

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to the volume of production or amount of output.

Fixed Costs

Expenses that do not change in total regardless of the level of production or sales activity, such as rent or salaries.

Variable Costs

Costs that vary directly with the level of production or sales volume.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.