G202 Exam 1
1. The PEST framework is used to analyze:
a. The political, economic, social, and technological factors affecting business
environments
b. The ethical concerns of government policies
c. The effectiveness of advertising strategies
d. The relationship between supply and demand in perfect competition
2. Which of the following factors falls under the "Political" category in PEST
analysis?
a. Consumer behavior and cultural trends
b. Tax laws, regulations, and government stability
c. Technological advancements in automation
d. Supply chain disruptions due to inflation
3. In PEST analysis, what does the "Economic" factor focus on?
a. Market conditions, inflation rates, and government subsidies
b. The role of media in influencing business practices
, c. The ethical implications of consumer behavior
d. The impact of education levels on employee performance
4. Which is an example of a "Social" factor in PEST analysis?
a. Demographics, cultural attitudes, and changing consumer preferences
b. Interest rate fluctuations
c. Supply chain innovations in e-commerce
d. Government taxation policies
5. Which of the following represents a "Technological" factor in PEST analysis?
a. A country imposing new tariffs on imported goods
b. Advancements in artificial intelligence and automation
c. A change in public health regulations
d. A company shifting its headquarters due to tax incentives
6. A market is considered socially efficient when:
a. A firm produces and sells a product that consumers value more than its
production costs
b. Firms maximize profits without regard for consumer preferences
c. Prices are set below production costs to maximize sales
d. The government sets price controls to balance supply and demand
7. What is the effect of taxes and productive regulations on market efficiency?
a. They decrease total surplus and reduce the quantity sold in the market
b. They increase total surplus and expand market activity
c. They create economic efficiency by removing all externalities
d. They have no impact on consumer demand
1. The PEST framework is used to analyze:
a. The political, economic, social, and technological factors affecting business
environments
b. The ethical concerns of government policies
c. The effectiveness of advertising strategies
d. The relationship between supply and demand in perfect competition
2. Which of the following factors falls under the "Political" category in PEST
analysis?
a. Consumer behavior and cultural trends
b. Tax laws, regulations, and government stability
c. Technological advancements in automation
d. Supply chain disruptions due to inflation
3. In PEST analysis, what does the "Economic" factor focus on?
a. Market conditions, inflation rates, and government subsidies
b. The role of media in influencing business practices
, c. The ethical implications of consumer behavior
d. The impact of education levels on employee performance
4. Which is an example of a "Social" factor in PEST analysis?
a. Demographics, cultural attitudes, and changing consumer preferences
b. Interest rate fluctuations
c. Supply chain innovations in e-commerce
d. Government taxation policies
5. Which of the following represents a "Technological" factor in PEST analysis?
a. A country imposing new tariffs on imported goods
b. Advancements in artificial intelligence and automation
c. A change in public health regulations
d. A company shifting its headquarters due to tax incentives
6. A market is considered socially efficient when:
a. A firm produces and sells a product that consumers value more than its
production costs
b. Firms maximize profits without regard for consumer preferences
c. Prices are set below production costs to maximize sales
d. The government sets price controls to balance supply and demand
7. What is the effect of taxes and productive regulations on market efficiency?
a. They decrease total surplus and reduce the quantity sold in the market
b. They increase total surplus and expand market activity
c. They create economic efficiency by removing all externalities
d. They have no impact on consumer demand
