The Principle of Increasing Opportunity Costs Implies That

question 44

Multiple Choice

The Principle of Increasing Opportunity Costs implies that:

• A) productive people do the hardest tasks first, while they are fresh.
• B) to increase production, you should use the resources with the lowest opportunity cost first.
• C) the cost-benefit principle does not apply to increasing productivity.
• D) specialization increases productivity.

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Definitions:

Classical Decision Model

The classical decision model is a theoretical approach to decision-making that assumes individuals have access to all necessary information, can objectively evaluate options, and will make rational choices maximizing outcomes.

Behavioral Decision Model

A framework describing how individuals make decisions based on their perceptions, attitudes, and possible behaviors.

Basic Differences

Fundamental dissimilarities between entities or concepts that distinguish them from one another.

Nonprogrammed Decisions

Choices responding to unique scenarios that are not clearly defined, mostly unstructured, and carry significant implications for the organization.