Market activity differs from government activity because:

A) markets generally force prices to below-cost levels.
B) governments never charge for the services they provide.
C) markets do not use voluntary exchange mechanisms.
D) markets provide a direct link between benefits and costs.
E) governments have strong incentives to keep costs under strict control.

Refer to Scenario: "Tentree Apparel." How can Tentree Apparel's strategic HR planning deliver the behaviours needed to enable its organizational strategy?

A) The HR planning process itself results in improved employee satisfaction.
B) The implementation of HR planning practices results in an effective organizational strategy.
C) The HR planning process motivates and attracts high-performing employees.
D) Employees help the organization achieve success because they are placed within a strategic framework.

Which of the following is an example of a negative externality?

A) an increase in the value of land you own when a nearby development is completed
B) the costs paid by a company to build an automated factory
C) falling property values in a neighborhood where a disreputable nightclub is operating
D) the higher price you pay when you buy a heavily advertised product

Manufacturing costs include direct labour, direct materials and all company-operating costs.

Firms often use patent rights as a:

A) barrier to exit.
B) barrier to entry.
C) way to achieve perfect competition.
D) none of the above

A(n) ________ occurs when a party to a contract transfers her duty to perform to a third party that is not part of the original contract.

A) novation
B) assignment
C) delegation
D) substantial performance
E) agency

In a limited decision making situation, buyers are already in the habit of buying a specific product or brand.

According to the Job Characteristics Model, what best describes task identity?

A) the extent to which a job requires a variety of skills to carry out the tasks involved
B) the degree to which a job allows an individual to make decisions about the way the work will be carried out
C) the extent to which a person receives clear information about performance effectiveness from the work itself
D) the degree to which a job requires completing a "whole" piece of work from beginning to end
E) the extent to which a job has an important impact on the lives of other people

Low cohesiveness is usually associated with:

A) low conformity
B) moderate conformity
C) high conformity
D) there is no predictable relationship between cohesiveness and conformity

Empowerment is most likely to create disharmony and dysfunction when workers _____.

A) accrue power and their subordinates are dependent on them
B) lack a clear perception of the boundaries of empowerment
C) possess the ability to influence others through specialized knowledge, skills, or abilities
D) are excessively dependent on their boss