The example of Enron shows that

selection of people is the key to organizational success or failure.
large incentives are the keys to getting people moving in a corporation.
business success is possible in a regulatory environment.
organizational structure is extremely important in business success.

the appropriate organizational architecture will change too.
a good organizational architecture is always able to cope with changes.
organizational architecture is able to restore the former market environment.
organizations are created by random events, just like markets.

how a successful business can be started.
how managers can cheat and get away with it.
how people make choices.
how to compete in the market.

blind copying.
copying from the best so as to become better.
looking at yourself and telling others what to do.
looking at yourself and telling yourself you are the greatest.

only cares about expected payoff.
always prefers a certain payoff to a risky one.
only cares about the variability of a payoff.
cares about expected payoff, as well as the variability of a payoff.

influence the costs and benefits of employee actions.
improve employee satisfaction with the job.
communicate goals and objectives effectively to their employees.
fire bad employees.

total happiness obtained from a consumption bundle.
additional utility obtained by lowering the price of a good.
additional utility obtained by consuming one additional unit.
total amount spent to purchase one additional unit.

we can be certain the equilibrium price will increase.
we can be certain the equilibrium quantity will increase.
both price and quantity will increase.
both price and quantity will decrease.

The quantity of subway and bus tickets sold is likely to increase.
The quantity of cars sold is likely to increase.
The quantity of gasoline sold is likely to increase.
The quantity supplied by producers will decrease.

a well-developed tax code.
an allocation of private property rights with high transactions costs.
an allocation of private property rights with low transactions costs.
a low cost of malpractice insurance.

the quantity demanded would be 65.

the quantity demanded would be 30.
there would be a shortage of 30.
there would be a surplus of 30.

Question 12.12.Assume D1 represents the current demand curve for skis. Which of the following would be likely to cause D1 to shift to D2? (Points : 1)

An increase in the price of snowboards.
An increase in the price of ski boots and clothing.
A decrease in the price of skis.
An increase in the price of skis.