TestgBankgforgEconomicsgforgManagersg2ndgEditiongPartg
1
Whichgofgthegfollowinggstatementsgisgcorrect?
1. A)gBygandglarge,gmanagerialgdecisionsgaregnotgaffectedgbygeith
ergmicroeconomicgorgmacroeconomicgforces.
2. B)gManagerialgdecisionsgaregaffectedgprimarilygbymacroeconomicgforces.
3. C)gManagerialgdecisionsgaregaffectedgbygbothgmicroeconomicga
ndgmacroeconomicgforces.
4. D)gManagerialgdecisionsgaregaffectedgprimarilygbymicroeconomicgforces.
Walmartʹsgdecisionging1994gtogcontinuegoperatinggstoresgingspecificgcitie
sgingMexicogwhengothergfirmsgweregpullinggoutgwouldgbegbestgclassifie
dgas:
1. A)g ag microeconomicg decision.
2. B)g ag macroeconomicg decision.
3. C)gbothgamicroeconomicgandamacroeconomicgdecision.
4. D)gneithergamicroeconomicgnorgamacroeconomicgdecision.
Whichg ofg theg followingg wouldg beg consideredg ang exampleg ofg agmacroec
onomicgproblem?
1. A)gShouldgMicrosoftgreducegthegpricegofgitsgWindowsgoperatinggsystem?
2. B)gShouldgJPgMorgangChasegincreasegtheginterestgrategitgchargesgitsgcre
ditgcardgcustomers?
3. C)gShouldgMitsubishigeliminategonegofgitsgproductiongshifts?
4. D)gShouldgthegfederalggovernmentgextendgthegeligibilitygperiodgf
orgunemploymentgbenefits?
WalmartʹsgentrygintogthegmarketgingMexicoghadgthegeffectgof:
1. A)greducinggcompetitiongandgraisinggthegpricesgofgmanygofgtheggood
sgitgsells.
2. B)gincreasinggcompetitiongandgraisinggthegpricesgofgmanygofgtheggood
sgitgsells.
3. C)gincreasinggcompetitiongandgloweringgthegpricesgofgmanygofgtheggood
sgitgsells.
, 4. D)greducinggcompetitiongandgloweringgthegpricesgofgmanygofgtheggood
sgitgsells.
Whichgofgthegfollowinggstatementsgisgfalse?
1. A)gWhilegmanagersgmustgunderstandghowgoutputgpricesgaregdetermine
d,gdeterminationgofginputgpricesgisgirrelevantgbecausegitgisgbeyond
gthegmanagerʹsgcontrol.
2. B)gPricegdeterminationgisgthegkeygelementginganygmarketgsystem.
3. C)gInputgpricesginfluencegagfirmʹsgcostsgofgproduction.
4. D)gOutputgpricesginfluencegagfirmʹsgrevenues.
Allgelsegconstant,gthegchoicegofgwhethergtogusegaglabor-
intensivegproductiongprocessgorgagcapital-intensivegonegisgdependsgon:
1. A)gthegabsolutegpricesgofgcapitalgandglabor.
2. B)gwhethergthegeconomygisggrowinggorgshrinking.
3. C)gthegrelativegpricesgofgcapitalglabor.
4. D)gthegtypegofgmarketgingwhichgthegfirmgoperates.
Whichgofgthegfollowinggisgnotgagcharacteristicgofgagperfectlygcompetitiveg
market?
1. A)gLimitedginformationgisgavailablegtogallgmarketgparticipants.
2. B)gEasegofgentrygintogthegmarket.
3. C)gOutputsgofgthegfirmsgaregperfectgsubstitutesgforgoneganother.
4. D)gLargegnumbergofgfirmsgingthegindustry.
Firmsgaregconsideredgtogbegpricegsearchers,gasgopposedgtogpricegtakers,gin
allgofgthegfollowinggmarketgtypesgexcept:
1. A)gmonopoly.
2. B)gperfectgcompetition.
3. C)goligopoly.
4. D)gmonopolisticgcompetition.
,WhichgofgthegfollowinggconditionsgensuresgthatgexcessgprofitsgcannotIpersi
stgingagperfectlygcompetitivegmarketgovergtheglonggrun?
1. A)gLargegnumbergofgfirmsgingthegindustry.
2. B)gCompleteginformationgisgavailablegtogallgmarketgparticipants.
3. C)gOutputsgofgthegfirmsgaregperfectgsubstitutesgforgoneganother.
4. D)gEasegofgentrygintogthegmarket.
Whichgofgthegfollowinggstatementsgisgcorrect?
1. A)gAllgelsegconstant,gagmonopolygfirmghasgmoregmarketgpowergtha
ngagmonopolisticallygcompetitivegfirm.
2. B)gThegfactgthatgthegfirmsgingangoligopolygaregmutuallyginterdepende
ntgmeansgthatgindividualgfirmsgdognotghaveganygmarketgpower.
3. C)gThegamountgofgmarketgpowergagfirmgpossessesgisgunrelatedgtogthegty
pegofgmarketgingwhichgitgoperates.
4. D)gSoglonggasgagfirmgisgsufficientlyglarge,gitgwillghavegsomegamount
gofgmarketgpower,gregardlessgofgthegtypegofgmarketgingwhichgitgope
rates.
Thegmarketgstructuregthatgisgcharacterizedgbygagsmallgnumbergofglargegfir
msgthatghavegsomegmarketgpowergisgcalled:
1. A)goligopoly.
2. B)gmonopoly.
3. C)gperfectgcompetition.
4. D)gmonopolisticgcompetition.
Whichgofgthegfollowinggmarketgstructuresgisgmostgsimilargtogperfectgcom
petition?
1. A)gMonopolisticgcompetition.
2. B)gMonopsony.
3. C)gMonopoly.
4. D)gOligopoly.
Thegkeygcharacteristicgofgangoligopolisticgmarketgis:
1. A)gmutualginterdependencegamonggfirmsgingthegmarket.
, 2. B)gproductiongofgaghomogeneousgproduct.
3. C)g theg absenceg ofg marketg powerg byg anyg oneg firm.
4. D)geasegofgentryginto,gandgexitgoutgof,gthegmarket.
Whichgofgthegfollowinggstatementsgaboutgmonopolygisgfalse?
1. A)gBecausegtheregisgagsinglegfirmgservinggthegentiregmarket,gthegmonopol
istgcangchargegwhatevergpricegitgwantsgtogforgitsgoutput.
2. B)gAgsinglegfirmgservesgthegmarket.
3. C)gTheregaregusuallygsignificantgbarriersgtogentry.
4. D)gTheregaregnogclosegsubstitutesgforgthegmonopolistʹsgoutput.
Thegassumedggoalgofgthegfirmsgthatgoperategingeachgofgthegfourgmarketg
structuresgdiscussedgingthegtextgisgtogmaximize:
1. A)gprofits.
2. B)g revenue.
3. C)g price.
4. D)gsales.
Whichgofg thegfollowingg statementsg aboutgtheg circulargflowg modelg isg false?
1. A)g Householdsg supplyg resourcesg tog theg businessg sector.
2. B)gBusinessgfirmsgbuyggoodsgandgservicesgfromgtheghouseholdgsector.
3. C)gBusinessessupplyggoodsgandgservicesgtogtheghouseholdgsector.
4. D)g Consumersg earng incomeg byg sellingg resourcesg theyg owng tog businesses.
Whichgofg thegfollowingg statementsgisg false?gIngthegcirculargflowgmodel:
1. A)gfactorgpaymentsgaregmadegtogbusinessgfirms.
2. B)gconsumptiongexpendituresgaremadegbyghouseholds.
3. C)gthegfundsgneededgtogfinanceginvestmentgspendinggcomegfromgthegsavi
nggofghouseholds.
4. D)gGDPgcangbegmeasuredgeithergbygthegincomegreceivedgorgbygt
hegexpendituresgmade.
1
Whichgofgthegfollowinggstatementsgisgcorrect?
1. A)gBygandglarge,gmanagerialgdecisionsgaregnotgaffectedgbygeith
ergmicroeconomicgorgmacroeconomicgforces.
2. B)gManagerialgdecisionsgaregaffectedgprimarilygbymacroeconomicgforces.
3. C)gManagerialgdecisionsgaregaffectedgbygbothgmicroeconomicga
ndgmacroeconomicgforces.
4. D)gManagerialgdecisionsgaregaffectedgprimarilygbymicroeconomicgforces.
Walmartʹsgdecisionging1994gtogcontinuegoperatinggstoresgingspecificgcitie
sgingMexicogwhengothergfirmsgweregpullinggoutgwouldgbegbestgclassifie
dgas:
1. A)g ag microeconomicg decision.
2. B)g ag macroeconomicg decision.
3. C)gbothgamicroeconomicgandamacroeconomicgdecision.
4. D)gneithergamicroeconomicgnorgamacroeconomicgdecision.
Whichg ofg theg followingg wouldg beg consideredg ang exampleg ofg agmacroec
onomicgproblem?
1. A)gShouldgMicrosoftgreducegthegpricegofgitsgWindowsgoperatinggsystem?
2. B)gShouldgJPgMorgangChasegincreasegtheginterestgrategitgchargesgitsgcre
ditgcardgcustomers?
3. C)gShouldgMitsubishigeliminategonegofgitsgproductiongshifts?
4. D)gShouldgthegfederalggovernmentgextendgthegeligibilitygperiodgf
orgunemploymentgbenefits?
WalmartʹsgentrygintogthegmarketgingMexicoghadgthegeffectgof:
1. A)greducinggcompetitiongandgraisinggthegpricesgofgmanygofgtheggood
sgitgsells.
2. B)gincreasinggcompetitiongandgraisinggthegpricesgofgmanygofgtheggood
sgitgsells.
3. C)gincreasinggcompetitiongandgloweringgthegpricesgofgmanygofgtheggood
sgitgsells.
, 4. D)greducinggcompetitiongandgloweringgthegpricesgofgmanygofgtheggood
sgitgsells.
Whichgofgthegfollowinggstatementsgisgfalse?
1. A)gWhilegmanagersgmustgunderstandghowgoutputgpricesgaregdetermine
d,gdeterminationgofginputgpricesgisgirrelevantgbecausegitgisgbeyond
gthegmanagerʹsgcontrol.
2. B)gPricegdeterminationgisgthegkeygelementginganygmarketgsystem.
3. C)gInputgpricesginfluencegagfirmʹsgcostsgofgproduction.
4. D)gOutputgpricesginfluencegagfirmʹsgrevenues.
Allgelsegconstant,gthegchoicegofgwhethergtogusegaglabor-
intensivegproductiongprocessgorgagcapital-intensivegonegisgdependsgon:
1. A)gthegabsolutegpricesgofgcapitalgandglabor.
2. B)gwhethergthegeconomygisggrowinggorgshrinking.
3. C)gthegrelativegpricesgofgcapitalglabor.
4. D)gthegtypegofgmarketgingwhichgthegfirmgoperates.
Whichgofgthegfollowinggisgnotgagcharacteristicgofgagperfectlygcompetitiveg
market?
1. A)gLimitedginformationgisgavailablegtogallgmarketgparticipants.
2. B)gEasegofgentrygintogthegmarket.
3. C)gOutputsgofgthegfirmsgaregperfectgsubstitutesgforgoneganother.
4. D)gLargegnumbergofgfirmsgingthegindustry.
Firmsgaregconsideredgtogbegpricegsearchers,gasgopposedgtogpricegtakers,gin
allgofgthegfollowinggmarketgtypesgexcept:
1. A)gmonopoly.
2. B)gperfectgcompetition.
3. C)goligopoly.
4. D)gmonopolisticgcompetition.
,WhichgofgthegfollowinggconditionsgensuresgthatgexcessgprofitsgcannotIpersi
stgingagperfectlygcompetitivegmarketgovergtheglonggrun?
1. A)gLargegnumbergofgfirmsgingthegindustry.
2. B)gCompleteginformationgisgavailablegtogallgmarketgparticipants.
3. C)gOutputsgofgthegfirmsgaregperfectgsubstitutesgforgoneganother.
4. D)gEasegofgentrygintogthegmarket.
Whichgofgthegfollowinggstatementsgisgcorrect?
1. A)gAllgelsegconstant,gagmonopolygfirmghasgmoregmarketgpowergtha
ngagmonopolisticallygcompetitivegfirm.
2. B)gThegfactgthatgthegfirmsgingangoligopolygaregmutuallyginterdepende
ntgmeansgthatgindividualgfirmsgdognotghaveganygmarketgpower.
3. C)gThegamountgofgmarketgpowergagfirmgpossessesgisgunrelatedgtogthegty
pegofgmarketgingwhichgitgoperates.
4. D)gSoglonggasgagfirmgisgsufficientlyglarge,gitgwillghavegsomegamount
gofgmarketgpower,gregardlessgofgthegtypegofgmarketgingwhichgitgope
rates.
Thegmarketgstructuregthatgisgcharacterizedgbygagsmallgnumbergofglargegfir
msgthatghavegsomegmarketgpowergisgcalled:
1. A)goligopoly.
2. B)gmonopoly.
3. C)gperfectgcompetition.
4. D)gmonopolisticgcompetition.
Whichgofgthegfollowinggmarketgstructuresgisgmostgsimilargtogperfectgcom
petition?
1. A)gMonopolisticgcompetition.
2. B)gMonopsony.
3. C)gMonopoly.
4. D)gOligopoly.
Thegkeygcharacteristicgofgangoligopolisticgmarketgis:
1. A)gmutualginterdependencegamonggfirmsgingthegmarket.
, 2. B)gproductiongofgaghomogeneousgproduct.
3. C)g theg absenceg ofg marketg powerg byg anyg oneg firm.
4. D)geasegofgentryginto,gandgexitgoutgof,gthegmarket.
Whichgofgthegfollowinggstatementsgaboutgmonopolygisgfalse?
1. A)gBecausegtheregisgagsinglegfirmgservinggthegentiregmarket,gthegmonopol
istgcangchargegwhatevergpricegitgwantsgtogforgitsgoutput.
2. B)gAgsinglegfirmgservesgthegmarket.
3. C)gTheregaregusuallygsignificantgbarriersgtogentry.
4. D)gTheregaregnogclosegsubstitutesgforgthegmonopolistʹsgoutput.
Thegassumedggoalgofgthegfirmsgthatgoperategingeachgofgthegfourgmarketg
structuresgdiscussedgingthegtextgisgtogmaximize:
1. A)gprofits.
2. B)g revenue.
3. C)g price.
4. D)gsales.
Whichgofg thegfollowingg statementsg aboutgtheg circulargflowg modelg isg false?
1. A)g Householdsg supplyg resourcesg tog theg businessg sector.
2. B)gBusinessgfirmsgbuyggoodsgandgservicesgfromgtheghouseholdgsector.
3. C)gBusinessessupplyggoodsgandgservicesgtogtheghouseholdgsector.
4. D)g Consumersg earng incomeg byg sellingg resourcesg theyg owng tog businesses.
Whichgofg thegfollowingg statementsgisg false?gIngthegcirculargflowgmodel:
1. A)gfactorgpaymentsgaregmadegtogbusinessgfirms.
2. B)gconsumptiongexpendituresgaremadegbyghouseholds.
3. C)gthegfundsgneededgtogfinanceginvestmentgspendinggcomegfromgthegsavi
nggofghouseholds.
4. D)gGDPgcangbegmeasuredgeithergbygthegincomegreceivedgorgbygt
hegexpendituresgmade.
