In Countries with High Power Distance

question 121

Multiple Choice

In countries with high power distance

• A)decisions are sometimes based on loyalty,not performance.
• B)it is unclear who is in power.
• C)people expect small differences in pay.
• D)people perceive inequity to be inherently wrong.

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Definitions:

Allocative Inefficiency

A situation in which resources are not allocated in a way that maximizes total welfare or societal well-being.

Illegal Business Behaviors

Illegal business behaviors encompass actions by companies that violate laws or regulations, such as fraud, insider trading, and environmental violations.

Natural Monopoly

A market condition where a single firm can supply the entire market's demand for a good or service more efficiently than multiple competing firms due to high fixed or startup costs associated with the industry.

Economies of Scale

The cost advantage achieved by an increase in production, leading to a reduction in the per unit cost.