JIT II Differs from Other Production Improvement Methods in That

question 40

Multiple Choice

JIT II differs from other production improvement methods in that:

• A)it requires the close cooperation of companies and their suppliers.
• B)it uses teams.
• C)it empowers through extensive training of employees.
• D)it makes heavy use of computer technology.

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Definitions:

Moral Hazard

A situation in which one party engages in risky behavior or fails to act in good faith because the negative consequences are borne by another party.

Coase Theorem

An economic theory that suggests that if trade in an externality is possible and there are no transaction costs, parties can negotiate solutions to conflict that lead to an efficient outcome regardless of the initial allocation of property.

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be positive or negative.

Pollution Abatement

Measures and processes undertaken to reduce, control, or eliminate pollution from various sources.