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Finance

Q: Which of the following structural strategies attempts to induce cooperation through rewards and recognition such as an employee-of-the-month award? A) monitoring behavior B) privatization C) regulation D) aligning incentives

Q: Patrick donates money to the community welfare fund and does a lot of social work. In the context of a public goods dilemma, Patrick can be affectionately called a(n) ________. A) sucker B) boundary spanner C) early adopter D) free rider

Q: Since Mathew avoids paying his taxes, in the context of a public goods dilemma, Mathew is a(n) ________. A) boundary spanner B) free rider C) early adopter D) laggard

Q: Public goods dilemmas are also known as ________. A) social fences B) environmental traps C) collective fences D) collective traps

Q: Resource conservation dilemmas are also known as ________. A) collective traps B) social fences C) environmental traps D) collective fences

Q: Which of the following is a form of social dilemma? A) public fences B) environmental traps C) social fences D) collective traps

Q: William and Julia are talking about environmental pollution and how, on an individual level, they can take some action to stop further pollution of the environment. William believes that reduction of his carbon footprint alone will not improve the environment since one individual's impact on the environment is negligible. He therefore does not bother much about it. If everyone were to follow William's belief it would result in a phenomenon known as the ________. A) backward intention B) tragedy of commons C) social dilemma D) dominance strategy

Q: Which of the following statements is true regarding a social dilemma? A) Social dilemmas provide anonymity that prisoner's dilemmas do not. B) Prisoner's dilemmas are riskier than social dilemmas. C) A social dilemma involves only two parties. D) When compared to prisoner's dilemmas, people in social dilemmas have more control over the situation.

Q: Which of the following statements is true regarding a prisoner's dilemma? A) A prisoner's dilemma involves more than two parties. B) In the case of a prisoner's dilemma, the costs of defection are spread out, rather than concentrated on one person. C) Social dilemmas are riskier than prisoner's dilemmas. D) As compared to social dilemmas, people in prisoner's dilemmas have less control over the situation.

Q: In general, people behave more competitively (in a self-interested fashion) in social dilemmas when compared to prisoner's dilemmas. Which of the following statements, if true, will weaken this argument? A) Social dilemmas provide anonymity. B) In the case of social dilemma, it is easy to alter and reinforce behaviors of others. C) Social dilemmas are riskier than prisoner's dilemmas. D) In the case of a social dilemma the costs of defection are spread out, rather than concentrated upon one person.

Q: The multiperson prisoner's dilemma is known as a(n) ________ dilemma. A) social B) concurrent C) reciprocal D) environmental

Q: In the case of a prisoner's dilemma, if we believe that everybody else is as rational as us then according to Hofstadter, this belief is called ________. A) evolved rationality B) supreme rationality C) superrationality D) collective rationality

Q: You are facing a prisoner's dilemma and you realize that the spiral of defection is escalating. In such a situation which of the following strategies can be implemented by you? A) See your actions as the response to the counterparty's behavior. B) Rebuild trust incrementally by taking a series of small steps. C) Ensure some time delay between your decision and your counterparty's decision. D) Offer large concessions in the hope that the other party will cooperate.

Q: David is using the tit-for-tat negotiation technique. Which of the following is most likely to be his opponent's response? A) The opponent will use the backward integration strategy in response. B) The opponent will use the rights-based approach. C) The opponent will exhibit an individualistic motivational orientation. D) The opponent will behave in a cooperative manner.

Q: The tit-for-tat strategy is successful in maximizing the overall long-term gains because ________. A) it uses forecasting methods to predict the opponent's actions B) it widens the bargaining zone C) it induces cooperation from its opponent D) it defects on the first trial

Q: Tit-for-tat strategy can never do better than its opponent because ________. A) it always cooperates B) it defects on the first trial C) it always defects D) it cooperates on the first trial

Q: Jessica is facing a prisoner's dilemma and she decides to use the tit-for-tat strategy. Which of the following statements is true regarding the outcome? A) Jessica will always earn less than her opponent. B) The most Jessica will earn is as much as her opponent. C) Jessica will always earn more than her opponent. D) Jessica will defect on the first trial

Q: In the case in which parties interact with one another for an infinite or indefinite amount of time, the game theoretic analysis indicates that ________ is the optimal choice. A) cooperation in the first period B) defection in the first period C) always cooperating irrespective of the counterparty's actions D) always defecting irrespective of the counterparty's actions

Q: In 1981 Robert Axelrod, a leading game theorist, invited members of the scientific community to submit a strategy to play in a prisoner's dilemma tournament. The winning strategy of the tournament was called ________. A) graduated reduction in tension strategy B) backward induction C) dominance strategy D) tit-for-tat

Q: Which of the following is a mechanism by which a person decides what to do in a repeated game situation by looking at the previous games from the last stage of the game? A) blue ocean strategy B) dominance strategy C) tit-for-tat D) backward induction

Q: Robert and Jaden are facing a prisoner's dilemma. According to the principle of dominance detection, a dominant strategy for Robert results in ________. A) a poor outcome for Robert no matter what Jaden does B) a better outcome for Robert no matter what Jaden does C) a poor outcome for Robert only when Jaden behaves in a particular way D) a better outcome for Robert only when Jaden behaves in a particular way

Q: Which of the following is a characteristic of a noncooperative negotiation? A) People know in advance what actions will be taken by others. B) People negotiate via proposals and counterproposals C) People usually come to the table voluntarily. D) The contract is tacit.

Q: Which of the following is a characteristic of a cooperative negotiation? A) The contract is tacit. B) People usually come to the table voluntarily. C) People often do not know what others will do. D) People negotiate through their behaviors and actions (rather than their promises of what they will do).

Q: Which of the following terms refers to a two-person dilemma? A) environmental dilemma B) tacit dilemma C) prisoner's dilemma D) explicit dilemma

Q: The distinction between explicit and tacit negotiation situations was first articulated by ________, who referred to one branch of negotiations as "cooperative games" and the other as "noncooperative games." A) Abraham Maslow B) Douglas McGregor C) Frederick Herzberg D) John Nash

Q: Which of the following statements is true regarding tacit negotiations? A) In tacit negotiations, outcomes of negotiators are independent of each other. B) In tacit negotiations, all the negotiators unanimously take one decision and then implement the same. C) The Kyoto Protocol is an example of a tacit negotiation. D) In tacit negotiations, people seek to reach mutual agreement via binding contract.

Q: Which of the following is a typical characteristic of a tacit negotiation? A) absence of a binding contract B) interest-based negotiation approach C) wide bargaining zone D) presence of more than five principal parties

Q: The negotiation situations in which people seek to reach mutual agreement via binding contract are called ________ negotiations. A) concurrent B) explicit C) reciprocal D) tacit

Q: As compared to written-only or no communication, people who communicate face-to-face are much more likely to reach a mutually profitable deal.

Q: In contrast to structural strategies, psychological strategies are inexpensive.

Q: The rational pursuit of self-interest is detrimental to collective welfare.

Q: Public goods dilemmas are also known as collective traps.

Q: Social dilemmas are riskier than prisoner's dilemmas.

Q: People behave less competitively in groups than in two-person situations.

Q: A person using the tit-for-tat strategy typically earns more than his or her opponent.

Q: In the case in which parties interact with one another for an infinite or indefinite amount of time, the logic of backward induction breaks down.

Q: Tacit negotiations are characterized by binding contract.

Q: The Kyoto Protocol is an example of an explicit negotiation.

Q: U.S. company BCT's negotiations with its Japanese supplier hit a roadblock when the U.S. negotiators felt that the Japanese were unnecessarily prolonging the negotiations and refusing to come to a conclusion. The Japanese neither agreed nor disagreed with any of the U.S. proposals. Given that the U.S. is an individualistic culture that values direct communication and egalitarian power relationships, while Japan is collectivist, hierarchical and prefers indirect communication, what are the possible reasons for the behavior of the Japanese negotiators?

Q: You work for a firm that specializes in negotiation consultation. Your firm has branches in several countries. You are asked to oversee negotiations between two parties in Japan (which is a collectivist, hierarchical country) and oversee another negotiation in the U.S. (which is an individualistic and egalitarian country). Which method (bargaining, mediation, adversarial adjudication, and inquisitorial adjudication) would you recommend for each situation and why?

Q: What is marginalization? A) Marginalization occurs when a group maintains its culture, but does not maintain contact with the other culture. B) Marginalization occurs when a group does not maintain its culture, but maintains contact with the other culture. C) Marginalization occurs when a group maintains both its culture and contact with the other culture. D) Marginalization occurs when a group neither maintains its own culture nor contact with the other culture.

Q: What is separation? A) Separation occurs when a group neither maintains its own culture nor contact with the other culture. B) Separation occurs when a group maintains both its culture and contact with the other culture. C) Separation occurs when a group does not maintain its culture, but maintains contact with the other culture. D) Separation occurs when a group maintains its culture, but does not maintain contact with the other culture.

Q: What is assimilation? A) Assimilation occurs when a group or a person does not maintain its culture, but maintains contact with the other culture. B) Assimilation occurs when a group or a person maintains its culture, but does not maintain contact with the other culture. C) Assimilation occurs when a group or a person maintains both its culture and contact with the other culture. D) Assimilation occurs when a group does not maintain its culture nor contact with the other culture.

Q: What is integration? A) Integration occurs when a group does not maintain its culture, but does maintain contact with the other culture. B) Integration occurs when a group maintains its own culture and contact with the other culture. C) Integration occurs when a group does not maintain its culture nor contact with the other culture. D) Integration occurs when a group maintains its culture, but does not maintain contact with the other culture.

Q: What is schematic overcompensation? A) It is a phenomenon that occurs when negotiators try to adjust to their counterpart's cultural assumptions and styles, resulting in the failure of intercultural negotiations. B) It is a phenomenon that occurs when negotiators stay anchored to their own cultural assumptions and styles, resulting in the failure of the intercultural negotiations. C) It is a phenomenon that occurs when a group or person does not maintain its culture but maintains contact with the other culture. D) It is a phenomenon that occurs when neither maintenance of the group's own culture nor contact with the other culture is attempted.

Q: What is an attribution error? A) the tendency to ascribe someone's behavior to external factors, outside the person's control B) the tendency to favor one's own group over other groups C) the tendency to ascribe someone's behavior to the wrong cause D) the tendency to categorize members of other cultures not as individuals but as part of a group

Q: What is the strategy used by negotiators to search for differences in beliefs and abilities to leverage opportunities for joint gain called? A) analyzing cultural differences to identify differences in values that expand the pie B) recognizing that the other party may not share your view of what constitutes power C) finding out how to show respect in other cultures D) anticipating differences in strategy and tactics that may cause misunderstandings

Q: What is the Quality of Communication Experience, or QCE? A) an index that measures the extent to which negotiators engage in integrative behaviors B) an index that measures the nature and quality of intra- and intercultural communications C) an index that predicts the extent to which negotiators engage in integrative behaviors and maximize joint profit D) an index that measures how fast negotiators adapt to new cultural environments

Q: What is an important factor in predicting success in intercultural interactions? A) narrow categorization B) social complexity C) avoiding stereotypes D) cultural flexibility

Q: When does the fundamental attribution error occur? A) It occurs when people explain the causes of their behavior in regards to other people's behavior. B) It occurs when people explain the causes of the behavior of others in terms of external factors. C) It occurs when people explain the causes of their behavior in terms of external factors, not in their control. D) It occurs when people explain the causes of the behavior of others in terms of their underlying dispositions.

Q: What is an affiliation bias? A) It is a bias that occurs when people evaluate a person's actions on the basis of his/her connection to an organization, rather than on the merits of the behavior itself. B) It is a bias that occurs when people evaluate a person's action on the basis of the merits of his/her behavior, rather than his/her social status. C) It is a bias that occurs when people evaluate a person's action on the basis of the demerits of his/her behavior, rather than the merits of the behavior. D) It is a bias that occurs when people evaluate a person's action on the basis of his/her financial status, rather than the demerits of the behavior itself.

Q: Ethnocentrism, or the unwarranted positive beliefs about one's own group leads to the manifestation of ________. A) prototypes B) chromotypes C) stereotypes D) heterotypes

Q: What is ethnocentrism? A) unwarranted positive beliefs about one's own group relative to other groups B) unwarranted positive beliefs about oneself relative to others C) a superiority feeling that arises from negating others D) an inferiority complex stemming from self-denial and demotivation

Q: When does the biased punctuation of conflict occur? A) when people interpret interactions with others depending upon the other person's social status B) when people interpret interactions with others depending upon the other person's financial status C) when people interpret interactions with their adversaries in an unbiased and professional manner D) when people interpret interactions with their adversaries in self-serving and other derogating terms

Q: Which of the following constitute taboo trade-offs? A) proposals to exchange communal values for sacred values B) proposals to exchange sacred values for secular values C) proposals to exchange traditional values for sacred values D) proposals to exchange secular values for sacred values

Q: What are the beliefs, customs, and assumptions that form the basis of a group or culture's belief system known as? A) secular values B) trade-offs C) sacred values D) communal values

Q: What intercultural negotiation challenge can be seen from the fact that joint gains were significantly lower in negotiations across different cultures, as compared to negotiations within the same culture? A) dividing the pie B) ethnocentrism C) affiliation bias D) expanding the pie

Q: Which of the following is a key challenge of intercultural negotiation? A) ethnocentrism B) egocentrism C) institutional bias D) individualism

Q: What implication for negotiation can be seen from the fact that U.S. managers prefer to use interests-based methods, while Hong Kong Chinese managers are more likely to involve higher management or a third party in negotiations? A) direct integrative strategies B) the conduct of negotiation C) dispute resolution preferences D) choosing your representative

Q: What implication for negotiation can be seen from the fact that Japanese and Russian managers indulge in making multiple offers at the same time, while U.S. and German managers ask for priority information during negotiations? A) understanding the network of relationships B) direct integrative strategies C) face concerns D) dispute resolution preferences

Q: In what form of communication culture is the information provided context-free? A) indirect communication culture B) in-group communication culture C) collectivist communication culture D) direct communication culture

Q: What is direct versus indirect information? A) a cultural dimension that refers to the amount of information contained in an explicit message versus implicit contextual cues B) a cultural dimension that refers to the means by which people influence others and the basis of power in relationships C) a cultural dimension that refers to the tendency to ascribe the cause of a person's behavior either to his/her character or to forces outside a person's control D) a cultural dimension that refers to the tendency of people of different cultures to differ in terms of the density of their work friendships

Q: What implication for negotiation can be seen from the fact that in Western cultures, people who are threatened or embarrassed act more assertively, while in Eastern cultures, people act more passively? A) the conduct of negotiation B) choosing your representative C) face concerns D) understanding the network of relationships

Q: What is an implication for negotiation included in egalitarianism versus hierarchy cultural dimension? A) information necessary to reach integrative agreements B) dispute resolution preferences C) information conduct D) understanding the network of relationships

Q: Which of the following can be considered an advantage of hierarchical power relationships? A) It empowers people to resolve conflict themselves. B) It calls for social inferiors not to challenge social superiors, thus reducing conflict between different social ranks. C) It empowers social inferiors to challenge social superiors, if high-status members are at fault. D) One's BATNA and information are key sources of power in hierarchical cultures.

Q: What is an important characteristic of egalitarian power relationships? A) Everyone expects to be treated equally. B) People are divided on the basis of their status in society. C) Social inferiors cannot challenge high-status members. D) Social inferiors are expected to defer to social superiors.

Q: What is inquisitorial adjudication? A) Disputants retain full control over the discussion process and settlement outcome. B) A judge makes a binding settlement decision, but disputants retain control of the process. C) Disputants yield to a third party control over both the process and the final decision. D) Disputants retain control over the final decision, but a third party guides the process.

Q: Which dispute resolution procedure involves disputants retaining control over the final decision, in the presence of a third party guiding the process? A) adversarial adjudication B) inquisitorial adjudication C) mediation D) bargaining

Q: What is adversarial adjudication? A) Disputants retain control over the final decision, but a third party guides the process. B) A judge makes a binding settlement decision, but disputants retain control of the process. C) Disputants yield to a third party control over both the process and the final decision . D) Disputants retain full control over the discussion process and settlement outcome.

Q: Which of the following is a type of dispute resolution procedure? A) directive adjudication B) bargaining C) principle adjudication D) egalitarianism

Q: How is dispositionalism different from situationalism? A) Dispositionalism is the tendency to ascribe the cause of a person's behavior to factors not in their control, while situationalism is the tendency to ascribe the cause of a person's behavior to their character. B) Dispositionalism is the strong tendency of people to favor the members of their own group, while situationalism is the tendency of people to give preference to individual goals over the group. C) Dispositionalism is the collectivist concern for the welfare of their group, while situationalism is the tendency of people to give preference to individual goals over collective group development. D) Dispositionalism is the tendency to ascribe the cause of a person's behavior to their character, while situationalism is the tendency to ascribe the cause of a person's behavior to factors not in their control.

Q: What implication for negotiation can be seen in the fact that in social events, Chinese-Americans used more somatic and social words than European-Americans? A) emotion and inner experience B) dispositionalism-situationalism C) cooperation and in-group favoritism D) social loafing-social striving

Q: The collectivist concerns for the welfare of a group is ________. A) social striving B) social gaining C) social loafing D) social thriving

Q: What implication for negotiation can be seen from the fact that Americans are more likely to remember situations in which they influenced others, while Japanese are more likely to remember situations in which they adjusted to others? A) social networks B) cooperation C) in-group favoritism D) social loafing

Q: Which of the following is an implication for the conduct of negotiation included in individualism-collectivism? A) outcast favoritism B) social gathering C) social networks D) positionalism

Q: Which cultural dimension can be seen from the fact that U.S. negotiators subscribe to self-interest and joint problem-solving norms, while Hong Kong Chinese negotiators subscribe to an equity norm? A) individualism-collectivism B) egalitarianism-hierarchy C) direct-indirect communication D) simultaneous-parallel communication

Q: Which cultural dimension refers to the means by which people influence others? A) individualism-collectivism B) egalitarianism-hierarchy C) direct-indirect communication D) simultaneous-parallel communication

Q: Which of the following is a dimension of culture? A) individualism versus collectivism B) homogeneity versus heterogeneity C) simultaneous versus parallel communication D) demographic versus topographic features

Q: What are the visible characteristics of a culture? A) values and beliefs B) ethics and norms C) behaviors and artifacts D) assumptions and morals

Q: What is a stereotype? A) a faulty belief that everyone from a given culture is completely different from each other B) a faulty belief that everyone from a given culture is exactly alike C) a belief that there is substantial variation even within a culture D) a belief that there are a number of similarities between people from different cultures

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