Answered: According to economic theory, a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

According to economic theory, a government with a contractionary fiscal policy would

decrease taxation, and not increase its spending
decrease its borrowing
increase its borrowing, and increase its spending
increase taxation, and not increase its spending

Aladi plc is evaluating whether it should have more decentralisation in its structure. It has identified the following factors which are relevant to the evaluation:

(1)The company is increasing in size

(2) The Chief Executive has an authoritative leadership style

(3) Activities are very varied

(4) Upward communication is good but downward communication is generally poor

Which of these factors indicate that Aladi plc would benefit from more decentralisation?

(1) and (2) only
(3) and (4) only
(1) and (3) only
(2) and (4) only

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