Archives: Quiz

A production possibility graph slopes down because of: a. the law of increasing costs. b. nonhomogeneous resources. c. inefficiency. d. improper output mix. e. unemployment. Bobby’s neighbor is growing a tree that is blocking Bobby’s ocean view. Bobby is considering […]

A gratuitous assignment is revocable by the assignor. The Truth-in-Lending Act has disclosure requirements for both consumer loans and credit sales over $25,000. Answer: F Usually in cases where there is a known principal, the agent has liability for, and […]

Administrative agencies create more legal rules and decide more controversies than all the legislatures and courts combined. The fourth Congress approved ten amendments to the U.S. Constitution, now known as the Bill of Rights, which were adopted on December 15, […]

Under the Second Restatement, the bankruptcy of the principal terminates, without notice, the power of an agent to affect the principal’s property that passes to the bankruptcy trustee. Bailed property must be tangible. Answer: F Compare the liability of an […]

A partner is criminally liable for the crimes of her partners. The difference between common and preferred stock is that the latter is a debt instrument, whereas the former represents an equity interest in the company. Answer: F If the […]

Eric is maximizing his total utility through his choices of two goods: clothes and food. His marginal utility of clothes is 60 and his marginal utility of food is 12. The price of clothes is $20. What must be the […]

All but which one of the following is a purpose of bankruptcy legislation? a. To preserve existing business relations. b. To punish recalcitrant debtors. c. To bring about a quick, equitable distribution of the debtor’s property among creditors. d. To […]

Sarah has a checking account at First Bank. Orrin steals one of her blank checks, writes a check for $250 to himself, and then forges Sarah’s signature. Orrin then indorses the instrument to Paul in payment of a debt. Paul, […]

The law establishes a test for determining whether a partnership has been formed. The test includes which of the following? a. An association of two or more persons. b. Conducting a business not necessarily for profit. c. That the partnership […]

Firms that emit toxins into the air: a. underproduce because the private cost of production exceeds the social cost. b. overproduce because the social cost of production exceeds the private cost. c. produce the same as nonpolluting firms. d. produce […]

Which of the following is NOT a breach of an agent’s duty of obedience? a. Entering into an unauthorized contract for which his or her principal is then liable. b. Committing a tort for which the principal is now liable. […]

All of the following may, in general, revoke a will by operation of law EXCEPT: a. subsequent marriage. b. subsequent divorce, as far as a provision in the will of one party for the benefit of the other. c. birth […]

Exhibit 3-8 Demand and supply data for Video games Exhibit 3-8 presents supply and demand data for the video game market. If the price of video games was currently $70, there would be an ____ of ____ video games in […]

On April 18, Marco bought a sailboat from a local marina. The boat was defective and did not turn about properly. Marco used the boat extensively all summer and the boat was no longer in the same condition as when […]

Describe the crime of false pretenses and name and define four crimes similar to false pretenses that were discussed in the textbook. Marvin offers to sell his lawnmower to Cheryl for $75 if she pays cash and picks the mower […]

In the long run, price elasticities of demand are usually ____. a. less than they are in the short run because people can adjust b. the same as they are in the short run because tastes don’t change c. greater […]

Exhibit 11-12 A monopsonist In Exhibit 11-12, at the profit-maximizing level of employment, the firm’s MFC is equal to ____ and the firm’s MRP is equal to ____. a. $35; $30 b. $25; $27 c. $30; $35 d. $27; $30 […]

The Sherman Antitrust Act of 1890 is the federal antitrust law that prohibits: a. monopolization and conspiracies to restrain trade. b. mergers the substantially lessen competition. c. exclusive dealing, tying contracts, and interlocking directorates. d. unfair methods of competition in […]

Noise pollution is a serious problem. One major contributor is the recent development of very powerful amplification equipment for automobile radios. Many people complain that the windows in their home vibrate when some cars drive by. Others complain that loud […]

If the market price is below the equilibrium price, then: a. a surplus of product will result. b. the quantity supplied will exceed the quantity demanded. c. the market supply curve will shift to the right. d. the quantity demanded […]

Suppose Embryonica is an LDC with few skilled workers, a primitive banking system, and very little electric power. What do we know for sure that Embryonica is lacking? a. Infrastructure. b. Political stability. c. Agricultural sector. d. Traditional values. e. […]

The use of a price system eliminates: a. scarcity. c. shortages and surpluses. b. equilibrium. d. changes in supply and demand. A fixed exchange rate is: a. determined by the forces of supply and demand. b. the value of a […]

The horizontal summation of individual demand curves gives: a. a supply curve. b. a Phillips curve. c. a market demand curve. d. the quantity supplied. e. a production function. If the minimum points of all the possible short-run average total […]

The number of cases of Coca-Cola bought increased by 50 percent when the price of pretzels declined by 10 percent. Assuming other factors are held constant, Coca-Cola and pretzels are classified as: a. complements. c. substitutes. b. unrelated goods. d. […]

Consumer equilibrium occurs at: a. any point of intersection between the budget line and an indifference curve. b. a point of tangency between the budget line and an indifference curve. c. the point where the slope of the indifference curve […]

Exhibit 8-1 Quantity and total revenue data for a firm Exhibit 8-1 indicates that this firm is operating in which type of market structure? a. Price-maker. c. Perfect competition. b. Unprofitable. d. Nonhomogeneous. According to the law of diminishing marginal […]

When economists say the quantity supplied of a product has decreased, they mean the: a. supply curve has shifted to the left. b. supply curve has shifted to the right. c. price of the product has risen, and consequently, suppliers […]

The more elastic the supply of a product, the more the actual burden of a tax on the product will: a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. create a smaller […]

GDP per capita is a relatively good measurement of: a. the distribution of income. c. household production. b. purchasing power. d. the standard of living. Currently, union membership in the United States is about: a. 10 percent. b. 15 percent. […]

A general characteristic of a job shop is that it requires a small variety of inputs, and minimal variations in the time it takes for a complete ‘job’. In traditional approaches to production, preventive maintenance is also common. Answer: True […]

ISO 9000 is a series of standards covering environmental management systems, auditing, labeling, and life-cycle assessment. Six Sigma is better applied on manufacturing than service operations. Answer: False A bullwhip effect occurs more often when the sole transmission of information […]

Developing and evaluating solutions to reduce the gap between desired process performance and current performance is the final step in the six sigma DMAIC approach for process improvement. Key aspects of the theory of constraints include identifying the bottlenecks in […]

The inventory turnover is calculated using the annual cost of goods sold and the aggregate inventory value on average. Design of Experiments (DOE) includes Taguchi methods. Answer: True In quality control there are two major types of inspection: measurement of […]

When calculating ranges for particular variables, it is mathematically possible to obtain negative variables; in such an event, one should set zero for that variable range. The idea behind the Kanban system is to authorize materials for production only if […]

The goal of this approach is to mistake-proof work activities in a way that prevents errors from being committed in the first place: a) Kaizen blitz b) Poka Yoke c) 5s d) Six sigma According to Goldratt, to complete a […]

The optimistic time is the amount of time the project will take under the worst-case scenario. Departments within a stage 2 organization may exhibit a stage 3 orientation, thereby upgrading the organization to a stage 3 categorization. Answer: False Benchmarking […]

What are the steps involved in using network planning techniques? While Operations Management focuses on privately−owned firms, governments provide many services and some goods, like: Answer: postal service; family, social, and aged assistance and care, health care, transportation, safety and […]

Consider the following partial MPS record. Beginning inventory is 0 units. The firm uses a fixed order quantity of 60 units. Fill out the last two rows of the table. The items listed below are stored in a one-dock warehouse. […]

Logistics includes what two major management functions? Why are services more complex to design than manufactured goods? Answer: Services produce intangible products produced with high levels of customer contact. The probability of rejecting a lot or batch of products whose […]

Frank’s umbrella corporation is designing a kanban system. They know that they are expected to produce 100 umbrellas per hour. They’ve also determined that a key external resource takes 30 minutes to deliver the required material once an order has […]

Johnson Enterprises sells no-spill syrup in bottles. Management is evaluating four different machines with standard deviations of .006, .01, .022, and .04 ounces for Machines A, B, C, and D, respectively. The specification limits 11.95 and 12.05 ounces. Which machines […]

The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during _____________________. a) World War I b) World War II c) The Korean War d) The Vietnam War e) […]

What is the statistic that measures the direction and strength of the linear relationship between two variables? a) r2 b) Coefficient of variation c) Variance d) Coefficient of kurtosis e) Correlation coefficient What are two of the most popular facility […]

Which of the following is considered a ‘quality guru?’ a) Elton Mayo b) W. Edwards Deming c) Alex Gamble d) F.W. Harris e) Frederick W. Taylor Which of the following is not a step in the load-distance model? a) solve […]

ERP systems provide _____ and _____ benefits. a) tangible, HR b) intangible, marketing c) marketing, operation d) tangible, intangible e) CEO, CFO Which of the following is true regarding the relative predictability of the cycle of new product introductions? a) […]

Which one of these refers to reducing the number of parts and features of the product whenever possible? a) design automation b) design specification c) design reduction d) design standardization e) design simplification In inventory management, when discussing customer service […]

Vertical integration is a good strategic option for a manufacturing company when a) it needs several different parts and subassemblies b) it makes many different products c) its facilities are obsolete d) it uses distributed processing e) it needs one […]

Consider a single-server queuing system. If the arrival rate is 45 customers per hour and it takes 1 minute on average to serve a customer, what is the average waiting time in the waiting line in minutes? a) 3 b) […]

What is the amount by which the efficiency of a production line falls short of 100%? a) balance delay b) efficiency deficiency c) efficiency delay d) balance shortfall e) percentage deficiency How can both the JIT and EOQ inventory theories […]

The quantity that equates the cost of making a product to the cost of buying the product is generally called what? a) Neutrality point b) Point of equality c) Indifference point d) Point of optimality e) No such point can […]