Question 6

Statement 1: "A consultant from the 'happy is productive' school of thought tends to approach business problems by examining the background of employees and then either constructing different arguments for people from different backgrounds to persuade them be more productive; or recommend firing employees from backgrounds that might make them unproductive."

Statement 2: "A consultant from the 'good citizen' school of thought when faced with the possibility of cheating on an exam might try to reduce cheating by pointing out that most students don't cheat and doing it the honest way isn't that difficult."

Group of answer choices

Both statements are false.

Both statements are true

Statement 2 is true, and 1 is false

Statement 1 is true, but 2 is false

Question 7

Statement 1: "The only reason an economist would ever accept for providing a fringe benefit rather than salary occurs when the benefit is not subject to income taxation."

Statement 2: "Economists would never support offering health insurance to employees 'cafeteria style.' In that approach several different types of health insurance are offered to employees (with different amount of paycheck deductions depending on the expense to the company) and the employees can choose which approach they prefer."

Group of answer choices

Statement 2 is true, and 1 is false

Both statements are true

Both statements are false.

Statement 1 is true, but 2 is false

Question 8

Statement 1: "If your firm is earning positive accounting profit, its a sure thing that you don't want to switch to another industry."

Statement 2: "In the long run firms in a competitive industry earn zero accounting profit."

Group of answer choices

Both statements are false.

Statement 2 is true, and 1 is false

Statement 1 is true, but 2 is false

Both statements are true

Question 9

Statement 1: "A firm with an unusually good manager will always get unusually high accounting profit. "

Statement 2: "A manager who is unusually good is likely to make an unusually large amount when firms other than the one he/she works for discover the manager's skill."

Group of answer choices

Both statements are true.

Statement 2 is true, and 1 is false

Both statements are false.

Statement 1 is true, but 2 is false.

Question 10

Statement 1: Firms using internal labor market often appreciate the fact that their employees have incentive to make the firm look good and rarely publicly criticise it.

Statement 2: Employees in firms using internal labor markets often spend more time lobbying for promotions than do employee in firms that hire on the spot market.

Group of answer choices

Both statements are true

Both statements are false

Statement 2 is true, and 1 is false

Statement 1 is true, but 2 is false