Reference no: EM132277330

1. The idea that all individuals or firms in a market earn the same returns in the long run is known as

subjective value.

the efficient market hypothesis.

competitive advantage.

business model aggregation.

2. Which of the following production strategies is most appropriate for a High-cost business?

Emphasize quality in operations even c. when the cost of doing so is high.

Emphasize quality in operations when the d. cost of doing so is relatively low.

Emphasize operation efficiencies through learning, economies of scale, and capital- labor substitution possibilities.

Emphasize specialized quality in operations even when costs are high.

3. Since the 1990s, the Chinese economy has:

a. become more regulated.

b. adopted a more free market approach.

c. remained stagnant

d. none of the above

4. Factors such as the growth or decline in GDP and changes in exchange rates are classified as:

international forces.

economic forces.

Social forces

None.

5. A nation’s economy is considered to be in a recession when

The number of unemployed workers does not decline for three consecutive quarters.

the Chairman of the Federal Reserve makes the distinction.

DP declines for two consecutive quarters.

All of the above.

6. A recession:

hurts all industries, but some more than c. other

hurts all equally

may actually help some industries

none

8. High inflation rates

hurt all industries, but some more than others

hurts all equally

may help some

none.

9. When the U.S. dollar is strong,

a. U.S. manufacturers tend to make more purchases from foreign sources.

b. U.S. manufacturers tend to limit purchases from foreign sources

c. U.S. manufacturers are more likely to close plants aboard.

d. none.