Fiedler's Contingency Theory Is Based on the Assumption That Leaders

question 60

True/False

Fiedler's contingency theory is based on the assumption that leaders are capable of adapting and adjusting their leadership styles to fit the demands of different situations.

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Definitions:

Normal Good

A good for which demand increases as the income of the consumer increases, and vice versa, holding all other factors constant.

Income Effect

The change in consumer demand for goods and services induced by a change in income, affecting the purchasing power of the consumer.

Substitution Effect

The change in consumption patterns due to a change in relative prices, prompting consumers to substitute one good for another.

Giffen Good

A rare type of good whose demand increases as its price increases, violating the basic law of demand, typically due to the absence of close substitutes.