STUDENTS SUCCESS
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
UNC MBA 650 FINAL EXAM 2024-2025 ACTUAL EXAM COMPLETE -
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz ____________is the problem of preventing you from acting opportunistically
after buying insurance
a. Moral hazard
b. Adverse selection
c. Decision making
d. None of the above
Ans: a. moral hazard
Quiz A bank can decrease the degree of moral hazard if it
a. Monitors the borrower’s behaviors
b. Placing covenants on the loan
c. Both of the above
d. None of the above
Ans: c. both of the above
Quiz A bidder values a rare sports card at $400, and expects that other bidder’s
value it between $200 and $1,000. The auction is a sealed-bid first-price auction.
Which of the following is potentially an optimal bid?
a. $300
b. $400
c. $600
d. $1,000
,Ans: a. $300
Quiz A bidder values a rare sports card at $400, and expects that other bidder’s
value it between $200 and $1,000. The auction is a sealed-bid second-price auction.
Which of the following is likely to be the best bid?
a. $250
b. $300
c. $400
d. $1,000
Ans: c. $400
Quiz A car manufacturer is considering selling a "standard" and a "deluxe" version of
an automobile. The manufacturer has identified two equally sized consumer
segments. Their values are given in the table below. The marginal cost of both
versions is $10,000. Which is the most profitable strategy.
Version
Consumer Segment A
Consumer Segment B
Standard
$25,000
$35,000
Deluxe
$28,000
$50,000
a. Price the standard version at $25,000 and the deluxe version at $50,000.
b. Price the standard version at $28,000 and the deluxe version at $50,000.
c. Price the standard version at $25,000 and the deluxe version at $40,000.
d. Offer only a deluxe version priced at $28,000.
Ans: c. Price the standard version at $25,000 and the deluxe version at $40,000
Quiz A car manufacturer is considering selling a "standard" and a "deluxe" version of
an automobile. The manufacturer has identified two equally sized consumer
segments. Their values are given in the table below. The marginal cost of both
versions is $10,000. Which, priced appropriately, is the most profitable strategy.
Version
Consumer Segment A
Consumer Segment B
Standard
$25,000
$45,000
Deluxe
$30,000
$50,000
a. Sell only a standard version.
b. Sell only a deluxe version.
c. Sell both a standard and deluxe version.
d. Sell neither version.
,Ans: b. sell only a deluxe version
Quiz A company announces a new incentive program offering salespeople an extra
$100 bonus for every sale. If sale prices are resolved through bargaining, what
should we expect to see?
a. Prices fall by $100.
b. Prices fall by $50.
c. Prices stay the same.
d. Prices increase by $100
Ans: b. Prices fall by $50
Quiz a company that rewards its salespeople based on the number of sales made
can expect
a. higher sales price
b. lower sales prices
c. no sales
d. all of the above
Ans: b. lower sales prices
Quiz A consumer in an electronics store expects that an inexpensive computer and
an office printer should each cost about $500. However, the store owner is willing to
sell both the computer and printer for $1100. According to prospect theory, which of
the following combinations of prices totaling $1100 is likely to generate the greatest
satisfaction for the consumer.
a. $600 for the computer, $500 for the printer.
b. $550 for the computer, $550 for the printer.
c. $599 for the computer, $501 for the printer.
d. All of the above are likely to generate the same satisfaction since the total is
identical in all cases.
Ans: a.$600 for the computer, $500 for the printer
Quiz A couple gets into an argument deciding where they would go out together.
Both like to spend like with each other and have the payoffs as below
Sally
Sam
Ballet
Boxing
Ballet
5,10
0,0
Boxing
0.0
10,5
What would be the Nash equilibrium of this simultaneous game?
a. Boxing, boxing
, b. Ballet, ballet
c. Boxing, ballet
d. Both A&B
Ans: d. both A&B
Quiz A firm can better align its salespersons goals to its own if
a. It bases performance evaluation on revenues
b. It pays its salespeople a commission based on profits
c. It pays its salespeople a commission based on sales
d. It pays its salespeople a salary
Ans: b. it pays its salespeople a commission based on profits
Quiz A firm hiring only MBAs, regardless of the self-professed skill set is an example
of
a. Screening mechanism
b. Signaling mechanism
c. Way to waste money
d. None of the above
Ans: a. Screening mechansim
Quiz A firm practicing direct price discrimination will charge a higher price to
a. Consumers known to have an elastic demand
b. All consumers
c. Consumers known to have an inelastic demand
d. Consumers known to have a unitary elastic demand
Ans: c. consumers known to have an inelastic demand
Quiz A firm practicing direct price discrimination will charge a higher price to
a) Consumers with an elastic demand
b) All consumers
c) Consumers with an inelastic demand
d) Consumers with unitary elastic demand
Ans: a. consumers with an elastic demand
Quiz A lender offers a low interest rate to a firm because the proposed project has a
high probability of success.
a. The firm will want to allocate the funds to a less risky project.
b. The firm will want to allocate the funds to a risker project.
c. The lender does not care how the funds are allocated.
d. The firm does not care how the funds are allocated.
Ans: b. the firm will want to allocate the funds to a riskier project
Quiz A local restaurant increases the prices on its burgers as soon as it begins a
promotional campaign. Which of the following is likely to be true?
Revision Examination Tests
“Come all for this Greatness”
... 100% Correct Ans ...
UNC MBA 650 FINAL EXAM 2024-2025 ACTUAL EXAM COMPLETE -
QUESTIONS AND CORRECT DETAILED ANSWERS
Quiz ____________is the problem of preventing you from acting opportunistically
after buying insurance
a. Moral hazard
b. Adverse selection
c. Decision making
d. None of the above
Ans: a. moral hazard
Quiz A bank can decrease the degree of moral hazard if it
a. Monitors the borrower’s behaviors
b. Placing covenants on the loan
c. Both of the above
d. None of the above
Ans: c. both of the above
Quiz A bidder values a rare sports card at $400, and expects that other bidder’s
value it between $200 and $1,000. The auction is a sealed-bid first-price auction.
Which of the following is potentially an optimal bid?
a. $300
b. $400
c. $600
d. $1,000
,Ans: a. $300
Quiz A bidder values a rare sports card at $400, and expects that other bidder’s
value it between $200 and $1,000. The auction is a sealed-bid second-price auction.
Which of the following is likely to be the best bid?
a. $250
b. $300
c. $400
d. $1,000
Ans: c. $400
Quiz A car manufacturer is considering selling a "standard" and a "deluxe" version of
an automobile. The manufacturer has identified two equally sized consumer
segments. Their values are given in the table below. The marginal cost of both
versions is $10,000. Which is the most profitable strategy.
Version
Consumer Segment A
Consumer Segment B
Standard
$25,000
$35,000
Deluxe
$28,000
$50,000
a. Price the standard version at $25,000 and the deluxe version at $50,000.
b. Price the standard version at $28,000 and the deluxe version at $50,000.
c. Price the standard version at $25,000 and the deluxe version at $40,000.
d. Offer only a deluxe version priced at $28,000.
Ans: c. Price the standard version at $25,000 and the deluxe version at $40,000
Quiz A car manufacturer is considering selling a "standard" and a "deluxe" version of
an automobile. The manufacturer has identified two equally sized consumer
segments. Their values are given in the table below. The marginal cost of both
versions is $10,000. Which, priced appropriately, is the most profitable strategy.
Version
Consumer Segment A
Consumer Segment B
Standard
$25,000
$45,000
Deluxe
$30,000
$50,000
a. Sell only a standard version.
b. Sell only a deluxe version.
c. Sell both a standard and deluxe version.
d. Sell neither version.
,Ans: b. sell only a deluxe version
Quiz A company announces a new incentive program offering salespeople an extra
$100 bonus for every sale. If sale prices are resolved through bargaining, what
should we expect to see?
a. Prices fall by $100.
b. Prices fall by $50.
c. Prices stay the same.
d. Prices increase by $100
Ans: b. Prices fall by $50
Quiz a company that rewards its salespeople based on the number of sales made
can expect
a. higher sales price
b. lower sales prices
c. no sales
d. all of the above
Ans: b. lower sales prices
Quiz A consumer in an electronics store expects that an inexpensive computer and
an office printer should each cost about $500. However, the store owner is willing to
sell both the computer and printer for $1100. According to prospect theory, which of
the following combinations of prices totaling $1100 is likely to generate the greatest
satisfaction for the consumer.
a. $600 for the computer, $500 for the printer.
b. $550 for the computer, $550 for the printer.
c. $599 for the computer, $501 for the printer.
d. All of the above are likely to generate the same satisfaction since the total is
identical in all cases.
Ans: a.$600 for the computer, $500 for the printer
Quiz A couple gets into an argument deciding where they would go out together.
Both like to spend like with each other and have the payoffs as below
Sally
Sam
Ballet
Boxing
Ballet
5,10
0,0
Boxing
0.0
10,5
What would be the Nash equilibrium of this simultaneous game?
a. Boxing, boxing
, b. Ballet, ballet
c. Boxing, ballet
d. Both A&B
Ans: d. both A&B
Quiz A firm can better align its salespersons goals to its own if
a. It bases performance evaluation on revenues
b. It pays its salespeople a commission based on profits
c. It pays its salespeople a commission based on sales
d. It pays its salespeople a salary
Ans: b. it pays its salespeople a commission based on profits
Quiz A firm hiring only MBAs, regardless of the self-professed skill set is an example
of
a. Screening mechanism
b. Signaling mechanism
c. Way to waste money
d. None of the above
Ans: a. Screening mechansim
Quiz A firm practicing direct price discrimination will charge a higher price to
a. Consumers known to have an elastic demand
b. All consumers
c. Consumers known to have an inelastic demand
d. Consumers known to have a unitary elastic demand
Ans: c. consumers known to have an inelastic demand
Quiz A firm practicing direct price discrimination will charge a higher price to
a) Consumers with an elastic demand
b) All consumers
c) Consumers with an inelastic demand
d) Consumers with unitary elastic demand
Ans: a. consumers with an elastic demand
Quiz A lender offers a low interest rate to a firm because the proposed project has a
high probability of success.
a. The firm will want to allocate the funds to a less risky project.
b. The firm will want to allocate the funds to a risker project.
c. The lender does not care how the funds are allocated.
d. The firm does not care how the funds are allocated.
Ans: b. the firm will want to allocate the funds to a riskier project
Quiz A local restaurant increases the prices on its burgers as soon as it begins a
promotional campaign. Which of the following is likely to be true?
