MECO Lesson 1

Question 1

Problem solving requires two steps:

Answer 1

1) figure out what’s causing the problem
2) figure out how to fix it

Question 2

assumes that people act
rationally, optimally, and self-interestedly.

Answer 2

rational-actor paradigm

Question 3

come from rewarding good performance.
* Ex: commission on sales

Answer 3

Good incentives

Question 4

A well-designed ____________ aligns employee
incentives with organizational goals.

Answer 4

organization

Question 5

Specifically, _________ have enough information to
make good decisions, and the incentive to do so.

Answer 5

employees

Question 6

NAR means

Answer 6

National Auto Repair

Question 7

reorganized into two division

Answer 7

led to colluding

Question 8

adopted flat pay

Answer 8

led to less incentive to work hard

Question 9

actions are good or ethical if they conform to a set of principles
(ex: The Golden Rule)

Answer 9

Deontologists

Question 10

actions are judged based on whether they lead to a good consequence

Answer 10

Consequentialists

Question 11

Economics is more __________________

Answer 11

Consequentialists