Test Bank for Economics for Managers 2nd Edition Part 1

TestIBankIfor IEconomics Ifor IManagers I2ndIEdition IPartI1 WhichIofItheIfollowingIstatementsIisIcorrect? 1. A)IByIandIlarge,Imanagerial IdecisionsIareInotIaffectedIbyIeither ImicroeconomicIorImacroeconomicIforces. ...

TestIBankIfor IEconomics Ifor IManagers I2ndIEdition IPartI1 WhichIofItheIfollowingIstatementsIisIcorrect? 1. A)IByIandIlarge,Imanagerial IdecisionsIareInotIaffectedIbyIeither ImicroeconomicIorImacroeconomicIforces. 2. B)IManagerialIdecisionsIareIaffectedIprimarilyIbyImacroeconomicIforces. 3. C)IManagerial IdecisionsIareIaffectedIbyIbothImicroeconomicIand ImacroeconomicIforces. 4. D)IManagerial IdecisionsIareIaffectedIprimarilyIbyImicroeconomicIforces. WalmartʹsIdecisionIinI1994ItoIcontinueIoperatingIstoresIinIspecificIcitiesIin IMexicoIwhenIotherIfirmsIwereIpullingIoutIwouldIbeIbestIclassifiedIas: 1. A) Ia Imicroeconomic Idecision. 2. B) Ia Imacroeconomic Idecision. 3. C)IbothIaImicroeconomicIandIaImacroeconomicIdecision. 4. D)IneitherIaImicroeconomicInorIaImacroeconomicIdecision. Which Iof Ithe Ifollowing Iwould Ibe Iconsidered Ian Iexample Iof Ia Imacroeconomic Iproblem? 1. A)IShouldIMicrosoftIreduceItheIpriceIofIitsIWindowsIoperatingIsystem? 2. B)IShouldIJPIMorganIChaseIincreaseItheIinterestIrateIitIchargesIitsIcredit IcardIcustomers? 3. C)IShouldIMitsubishi IeliminateIoneIofIitsIproductionIshifts? 4. D)IShouldItheIfederal IgovernmentIextendItheIeligibilityIperiodIfor IunemploymentIbenefits? Walmartʹs Ientry Iinto Ithe ImarketIinIMexico IhadIthe IeffectIof: 1. A)IreducingIcompetitionIandIraisingItheIpricesIofImanyIofItheIgoodsIit Isells. 2. B)IincreasingIcompetitionIandIraisingItheIpricesIofImanyIofItheIgoodsIit Isells. 3. C)IincreasingIcompetitionIandIloweringItheIpricesIofImanyIofItheIgoodsIit Isells. 4. D)IreducingIcompetitionIandIloweringItheIpricesIofImanyIofItheIgoodsIit Isells. WhichIofItheIfollowingIstatementsIisIfalse? 1. A)IWhileImanagersImustIunderstandIhowIoutputIpricesIareIdetermined, IdeterminationIofIinputIpricesIisIirrelevantIbecauseIitIisIbeyondIthe ImanagerʹsIcontrol. 2. B)IPriceIdeterminationIisItheIkeyIelementIinIanyImarketIsystem. 3. C)IInputIpricesIinfluenceIaIfirmʹsIcostsIofIproduction. 4. D)IOutputIpricesIinfluenceIaIfirmʹsIrevenues. AllIelseIconstant,ItheIchoiceIofIwhetherItoIuseIaIlabor-intensiveIproduction IprocessIorIaIcapital-intensiveIoneIis Idepends Ion: 1. A)ItheIabsoluteIpricesIofIcapital IandIlabor. 2. B)IwhetherItheIeconomyIisIgrowingIorIshrinking. 3. C)ItheIrelativeIpricesIofIcapital Ilabor. 4. D)ItheItypeIofImarketIinIwhichItheIfirm Ioperates. WhichIofItheIfollowingIisInotIaIcharacteristicIofIaIperfectlyIcompetitive Imarket? 1. A)ILimitedIinformationIisIavailableItoIall ImarketIparticipants. 2. B)IEaseIofIentryIintoItheImarket. 3. C)IOutputsIofItheIfirmsIareIperfectIsubstitutesIforIoneIanother. 4. D)ILargeInumberIofIfirmsIinItheIindustry. FirmsIareIconsideredItoIbeIpriceIsearchers,IasIopposedItoIpriceItakers,IinIall IofIthe IfollowingImarketItypes Iexcept: 1. A)Imonopoly. 2. B)IperfectIcompetition. 3. C)Ioligopoly. 4. D)ImonopolisticIcompetition. WhichIofItheIfollowingIconditionsIensuresIthatIexcessIprofitsIcannotIpersist IinIaIperfectlyIcompetitive ImarketIoverItheIlongIrun? 1. A)ILargeInumberIofIfirmsIinItheIindustry. 2. B)ICompleteIinformationIisIavailableItoIall ImarketIparticipants. 3. C)IOutputsIofItheIfirmsIareIperfectIsubstitutesIforIoneIanother. 4. D)IEaseIofIentryIintoItheImarket. WhichIofItheIfollowingIstatementsIisIcorrect? 1. A)IAll IelseIconstant,IaImonopolyIfirmIhasImoreImarketIpowerIthanIa ImonopolisticallyIcompetitiveIfirm. 2. B)ITheIfactIthatItheIfirmsIinIanIoligopolyIareImutuallyIinterdependent ImeansIthatIindividual IfirmsIdoInotIhaveIanyImarketIpower. 3. C)ITheIamountIofImarketIpowerIaIfirmIpossessesIisIunrelatedItoItheItype IofImarketIinIwhichIitIoperates. 4. D)ISoIlongIasIaIfirmIisIsufficientlyIlarge,IitIwill IhaveIsomeIamountIof ImarketIpower,IregardlessIofItheItypeIofImarketIinIwhichIitIoperates. TheImarketIstructureIthatIisIcharacterizedIbyIaIsmallInumberIofIlargeIfirms IthatIhave Isome ImarketIpowerIis Icalled: 1. A)Ioligopoly. 2. B)Imonopoly. 3. C)IperfectIcompetition. 4. D)ImonopolisticIcompetition. WhichIofItheIfollowingImarketIstructuresIisImostIsimilarItoIperfect Icompetition? 1. A)IMonopolisticIcompetition.