Economics Of Strategy 7th Edition By David Dranove - Test Bank

,File:gch01,gChapterg1:gThegPowergofgPrinciples:gAgHistoricalgPerspective



MultiplegChoiceg



1.gWhichgofgthegfollowinggdidgnotgcontributegtogtheghighgtransactiongrelatedgrisksgforgU.S.gpotatogsalesgi
ng1840?
a) Infrequencygofgtransactions
b) Changinggtransactiongpartners
c) Lackgofgavailabilitygofgsalesgandgpricesgforgcomparableggoods
d) CompetitiongfromgEuropeangmerchants
e) Geographicgdistancegbetweengbuyersgandgsellers

Ans:gd
Heading:gThegWorldging1840g–
gDoinggBusinessging1840gLevel:gMedium




2.gWhatgwasgagkeygcontributiongtogthegdominancegofgthegfamily-
rungsmallgbusinessging1840?
a) Factories
b) Infrastructure
c) RawgMaterials
d) Management
e) Laws

Ans:gb
Heading:gThegWorldging1840g–
gConditionsgofgBusinessging1840:gLifegwithoutgagModerngInfrastructuregLevel:gEasy




3.gMatchmakersgbetweengmanufacturersgandgsellersgaregcalled:
a) Agents
b) Factors
c) Brokers
d) Merchants
e) NonegofgthegAbove

Ans:ggc
Heading:ggDoinggBusinessging1840
Level:ggEasy

,4.gWhatgsignificantgtransportationgeventgbroughtgaboutgthegfirstgsignificantggrowthgofgthegGreatgLakesgre
gion?
a) Harnessinggofgthegsteamgengine
b) Inventiongofgthegscrewgpropeller
c) OpeninggofgthegEriegCanal
d) Integrationgofgrailwaygsystem
e) Inventiongofgthegrailwaygsystem

Ans:gc
Heading:gThegWorldging1840g–gConditionsgofgBusinessging1840:gLifegwithoutgagModerngInfrastructureg–
gTransportation
Level:gMedium



5.gWhatgisgthroughput?
a) Thegmovementgofginputsgandgoutputsgthroughgagproductiongprocess
b) Assetsgthatgassistgingthegproductiongorgdistributiongofggoodsgandgservices
c) Agconditiongthatgdeterminesgtheghorizontalgandgverticalgboundariesgofgbusinessgfirms
d) Anginvestmentgingthegacquisitiongofgrawgmaterials
e) Thegamountgofgtimegforgaggoodgtogtravelgbetweengmetropolitangareas

Ans:ga
Heading:gExampleg4.1g–
gThegEmergencegofgChicagogLevel:gHard




6.gWhatgmodegofglong-
distancegcommunicationgfirstglaidgtheggroundworkgforgtoday’sgmoderngcommunicationgfor
ms?ga)gU.S.gPostalgService
b) Privategmailgservice
c) Telegraph
d) Telephone
e) Railroad

Ans:gd
Heading:gThegWorldging1840g–
gConditionsgofgBusinessging1840:gLifegwithoutgagModerngInfrastructureg–
gCommunicationsgLevel:gEasy




7.gWhatgwasgthegmajorgrolegofgprivategbanksgingthegearlyg1800s?
a) Servegasganginstitutiongforgdeposits
b) Issuegcredit
c) Reducegthegriskgofgpricegfluctuation
d) Creategfuturesgmarkets
e) Sellgstocks

, Ans:gb
Heading:gThegWorldging1840g–gConditionsgofgBusinessging1840:gLifegwithoutgagModerngInfrastructureg–
gFinance
Level:gMedium
8.gWhatgwasgonegofgthegfirstgplant/
factorygtypesgtogusegtheg“AmericangSystem”gofgmanufacturing?ga)gFirearms
b) Steel
c) Oil
d) Automobiles
e) Chemicals

Ans:ga
Heading:gThegWorldging1840g–
gConditionsgofgBusinessging1840:gLifegwithoutgagModerngInfrastructureg–
gProductiongTechnologygLevel:gMedium




9.gWhatgeconomicsggamegtheorygconceptgisgdemonstratedgbygthegEriegCanalgpublicgworksgproject
?ga)gNashgequilibrium
b) Lock-in
c) Backwardsginduction
d) Fairgdivision
e) Prisoner’sgdilemma

Ans:ge
Heading:gThegWorldging1840g–
gConditionsgofgBusinessging1840:gLifegwithoutgagModerngInfrastructureg-gGovernmentgLevel:gEasy




10.gWhatgwasgthegmostgsignificantgdevelopmentgtogthegevolutiongofgbusinessgcircag1910
?ga)gRailroadgintegration
b) Telegraphgcommunicationgexpansion
c) Bankinggandgaccountinggstandardgpractices
d) Mass-productiongtechnology
e) Adventgofgsteamgtechnologygingrailroadsgandgshipping

Ans:gd
Heading:gThegWorldging1910g–
gDoinggBusinessging1910gLevel:gMedium




11.gWhichgofgthegfollowinggledgtogoverbuildinggofgrailroadsgingtheg1860’sgandg1870’s?
a) Reductiongofgtaxesgongrailroadsgbygthegfederalggovernment
b) ThegsuccessgofgrailroadsgingEurope
c) Thegavailabilitygofgfinancinggduegtogpublicgoptimism
d) Theglowgcostgofglaborgtogconstructgrailroads