The Fundamental Problem of Economics Is

question 5

Multiple Choice

The fundamental problem of economics is

• A) that resources are too scarce to satisfy all wants simultaneously
• B) how to balance the federal budget
• C) deciding how large government should be
• D) how to keep the unemployment rate below 4%
• E) that firms have no way to know what consumers want to buy

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Definitions:

Hot Stove Rule

A principle in management and discipline that suggests consequences should be immediate, consistent, impersonal, and close to the action of misconduct, akin to touching a hot stove.

Progressive Discipline

The process of tying reprimands to the severity and frequency of misbehaviour.

Incremental Discipline

A method where disciplinary actions progressively increase with each recurrence of undesirable behavior.

Management by Objectives (MBO)

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.