Human Beings Are Complex, and Few, If Any, Simple and Universal

question 54

Multiple Choice

Human beings are complex, and few, if any, simple and universal principles explain organizational behavior. Nevertheless, it does not mean that OB cannot offer reasonably accurate explanations of human behavior or make valid predictions. It does mean that OB concepts must ________.

• A) focus on the reliability and validity of research data
• B) attempt to establish cause-and-effect relationships
• C) be consistently applicable across a wide range of situations
• D) reflect situational, or contingency, conditions
• E) avoid assumptions

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Definitions:

Consumer Equilibrium

A state in which a consumer has allocated their income in a way that maximizes their utility, given prices and their budget constraint.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less expensive ones.

Income Effect

The change in an individual's or economy's consumption patterns due to a change in real income, which can result from wage changes, inflation, or taxation adjustments.

Consumer Equilibrium

The point at which the quantity of a product demanded by consumers equals the quantity supplied, leading to a state where there is no incentive for prices to change.