Multiple Choice Quiz

Select the radio button corresponding to your choice of answer for each question, and then click on "Submit Answers" to find out how many you answered correctly.

1		Complementarity ensures that
			A)	doing more of one activity increases the return to doing more of the other activity.
			B)	the increase in marginal utility is decreasing.
			C)	the various products are of comparable quality.
			D)	nobody can improve his/her position without hurting somebody else.
2		Complementarity requires an analysis in which one views an organization as a
			A)	nexus of contracts.
			B)	collection of bureaus.
			C)	production function.
			D)	system of attributes.
3		Which of the following is not an alignment principle?
			A)	The equal compensation principle.
			B)	The law of large numbers.
			C)	The incentive intensity principle.
			D)	Orthogonality.
4		The law of large numbers results in the fact that
			A)	there is an overload of information.
			B)	the variance of a sample average declines when the sample size grows.
			C)	humans have difficulties with large numbers.
			D)	organizations have a tendency to become very large.
5		A systems of attributes perspective does not mean that
			A)	there is a single ‘best’ organizational design.
			B)	a menu of contracts has to be offered for each attribute.
			C)	strong performance incentives are in general attractive.
			D)	considerations of local units have to be downplayed.
6		A change in the system of attributes may not be desirable due to the
			A)	growth in market demand.
			B)	decrease in information technology costs.
			C)	costs of determining the right incentives.
			D)	labour market considerations.
7		System change may be preferable due to desired changes in the level of
			A)	asset specificity.
			B)	complexity of the production process.
			C)	education of the employees.
			D)	All of the above.
8		Benefits of system change often take considerable time to materialize because
			A)	the circumstances are not yet right.
			B)	they are hard to measure.
			C)	the various attributes have a different pace of change.
			D)	None of the above.
9		A systems of attributes perspective requires in general that change is
			A)	big bang.
			B)	sudden.
			C)	gradual.
			D)	attribute by attribute.
10		A policy of implementing ‘best practice’ is ill advised according to a complementarity perspective because
			A)	best practice is in general not well understood.
			B)	a focus on best practices does not bring synergies to value.
			C)	best practice involves a lot of haggling.
			D)	best practice involves path dependencies.