Archives: Quiz

1) According to the Taylor rule, if real GDP falls by 1 percent below potential GDP, the Fed should lower the Federal funds rate by one-half a percentage point. 2) Tax revenues automatically increase during economic expansions and decrease during […]

1) An individual bank can safely lend out a multiple of its excess reserves, but the banking system can safely lend out only an amount equal to the excess reserves in the banking system. 2) the short run is a […]

1) Demographers expect world population to decline in the next century. 2) Human capital investment refers to spending on education and worker training. Answer: TRUE 3) Kara’s Kettles, Inc. has developed a new and improved type of cookware. Alex, a […]

1) price discrimination will result in consumers with more elastic demand purchasing more of the good than when a single price is charged to all consumers in the market. 2) Balance sheets always balance because reserves must always equal liabilities […]

1) to achieve its full production potential, an economy must reach full employment. 2) illegal immigration has little effect on the average level of wages in the united states. Answer: true 3) When C + Ig = GDP in a […]

1) the consumer demand curve for a product is downsloping because marginal utility is constant when price declines. 2) The U.S. poverty rate was considerably lower in 2006 than in 1960. Answer: TRUE 3) A change in the reserve ratio […]

1) Environmentalists generally support price supports because these subsidies motivate additional farm production. 2) people who work part time, but desire to work full time, are considered to be officially unemployed. Answer: false 3) The equilibrium world price of a […]

1) unanticipated inflation benefits debtors at the expense of creditors. 2) The U.S. poverty rate for African-Americans is substantially higher than that for Asians. Answer: TRUE 3) specialization may expand total output even though the individuals involved may have identical […]

1) a nation has a comparative advantage in some product when it can produce that good at a lower domestic opportunity cost than can a potential trading partner. 2) The prime interest rate and the Federal funds rate normally change […]

1) Thrifts are known as “banker’s banks” because they lend money to commercial banks. 2) ndp can be determined by adding taxes on production and imports to gdp. Answer: false 3) health care costs have risen absolutely but remained constant […]

1) The M2 money supply may be larger or smaller than the M1 money supply depending on the size of small time deposit balances and Money Market Mutual Fund balances held by individuals. 2) In 2002, the United States announced […]

1) The M2 money supply is larger than the M1 money supply. 2) if all nations prohibited the international migration of labor, we would expect world output to decline. Answer: true 3) If the substitution effect outweighs the output effect, […]

1) The rising general level of real wages in the United States has occurred because growing population has increased the supply of labor relative to the demand for it. 2) Most developed countries have fertility rates less than 2.1. Answer: […]

1) The real-balances effect indicates that inflation makes the public feel wealthier and they therefore spend more out of their current incomes. 2) Marginal revenue product (MRP) is the change in total product (total output) associated with hiring an additional […]

1) the present choice of position on the production possibilities curve will not influence the future location of the curve. 2) price discrimination is illegal in the united states under antitrust regulations. Answer: false 3) refer to the above diagram. […]

1) The crowding-out effect of the public debt may be dampened if the investment-demand curve is shifting to the right. 2) the entrepreneur’s sole function is to combine other resources (land, labor, and capital) in the production of some good […]

1) Per capita water use in the United States has steadily increased since 1973. 2) the federal government in 2006 enacted limits on “pain and suffering” awards on medical malpractice lawsuits against physicians. Answer: false 3) If the reserve requirement […]

1) in 2006, some 45 million americans did not have health insurance. 2) The demand for labor is a derived demand whereas the demand for capital is not. Answer: FALSE 3) macroeconomics explains the behavior of individual households and business […]

1) personal income usually exceeds disposable income. 2) oligopoly firms may produce either standardized or differentiated products. Answer: true 3) During the Great Depression most nations lowered tariffs and abolished import quotas to encourage the flow of trade. Answer: FALSE […]

1) because of their large-scale level of production, pure monopolists overallocate resources to their industry by producing beyond the p = mc output. 2) refer to the above diagram for a nondiscriminating monopolist. at output q production will be unprofitable. […]

1) Saving is low in many DVCs primarily because income is very equally distributed. 2) The M2 money supply equals M1 minus small time deposits plus Money Market Mutual Fund balances held by individuals. Answer: FALSE 3) The banking system […]

1) If the United States and France are both on the international gold standard and U.S. exports to France exceed United States imports from France, gold will flow from the United States to France. 2) The fact that most of […]

1) although individual purely competitive firms can influence the price of their product, these firms as a group cannot influence market price. 2) indifference curves are linear and budget lines are convex to the origin. Answer: false 3) Mainstream economists […]

1) which of the following types of decision making is generally used in china, germany, turkey, and india? a) participative b) autocratic c) totalitarian d) theocratic 2) japanese negotiators tend to ________. a) lack emotional sensitivity b) be argumentative c) […]

1) in high-context cultures, ________. a) feelings and thoughts are not explicitly expressed b) information is readily shared c) people have high sensory involvement d) nonverbal communication is not important 2) ________, when placed in key positions, are perceived by […]

1) according to lazarova and tarique, which of the following conditions must be met for the successful transfer of knowledge between repatriates and firms? a) the repatriates must have valuable knowledge to transfer b) the repatriates must have low tolerance […]

1) in the context of needs, eastern cultures tend to focus on ________. a) the needs of the individual b) the needs of society c) materialistic needs d) self-actualization needs 2) ________ is an ideal strategy for small businesses with […]

1) which of the following is the most critical aspect of a franchising strategy? a) customer base b) distribution c) quality control d) local marketing 2) which of the following is the primary advantage of using e-business as a local-level […]

1) which of the following refers to a self-contained business within a company with its own functional departments and accounting systems? a) buying center b) supply chain c) value chain d) strategic business unit 2) according to berdrow and lane, […]

1) the mission of the international labor organization is to ________. a) develop and nurture global union leaders b) file lawsuits on behalf of workers c) promote low-skilled and semiskilled laborers as opposed to highly-skilled laborers worldwide. d) ensure that […]

1) jerry, representing a u.s firm, is sent to saudi arabia to negotiate his company’s contracts. which of the following should jerry keep in mind when negotiating with the arabs? a) business should be conducted personally and not via telephone […]

1) organizational design as a mechanism for factoring international joint venture control refers to the ________. a) human resource plans and policies of the joint venture b) market share and profitability ratios of the organization c) geographic location of the […]

1) austria and germany value competition and have a “can-do” attitude. therefore, according to the globe project, austria and germany are most likely to be ________ societies. a) accommodative b) cooperative c) humane-oriented d) assertive 2) which of the following […]

1) most managers in mexico find that the management style that works best there is ________. a) democratic b) authoritative c) theocratic d) consultative 2) international joint ventures are like a marriage because ________. a) the firms cannot be separated […]

1) social responsibility, ethical behavior, and interdependence are important concerns to be built into ________. a) economic control b) management control c) corporate sustainability d) moral idealism 2) the japanese preference for humanity, reciprocity, and analytic logic is known as […]

1) which of the following is a method of dependency? a) local debt financing b) localization of the operation c) political risk insurance d) maintaining control over technology 2) ________ operate(s) outside the formal structure, focusing on innovation and improvement. […]

1) a country’s ability or intention to meet its financial obligations determines its ________. a) technological risk b) legal risk c) political risk d) economic risk 2) having which of the following traits is universally considered to facilitate leadership effectiveness? […]

1) according to robertson and crittenden, which of the following has made integrating an ethical component into international strategic decisions, challenging? a) corporate ethics b) cultural constraints c) natural resources d) political stability 2) ________ is the process of translating […]

1) which of the following terms refers to the expectation that foreigners should automatically fall into host-country patterns of behavior? a) geocentrism b) nationalism c) parochialism d) ethnocentrism 2) research shows that managers from ________ have the highest tolerance for […]

1) with regard to transitioning economy in russia, russian managers primarily emphasize ________. a) self-esteem b) job security c) intellectual capital d) self-actualization 2) in the american culture, which of the following is most likely to be considered a “dirty […]

1) which of the following is the proactive reason that prompts firms to expand overseas? a) avoiding restrictive trade barriers b) solving logistics-related problems c) responding to foreign competition d) seeking economies of scale 2) nextlinx corporation provides a wide […]

1) which of the following behaviors is not consistent with casse’s profile of successful american negotiators? a) refuses to make concessions in advance b) exhibits a good sense of timing c) never compromises d) understands the issues 2) ________ pointed […]

1) ________ is optimized when career opportunities provided by the organization are congruent with repatriate career goals and aspirations. a) team management b) organizational efficiency c) productivity d) knowledge transfer 2) where ownership is divided among several partners, the parent […]

1) in which of the following countries is a merit-based reward system most likely be effective? a) south korea b) taiwan c) japan d) the united states 2) the task of ________ is the essence of leadership. a) maintaining the […]

1) posture, gestures, facial expressions, and eye contact are examples of ________. a) kinesic behavior b) proxemics c) paralanguage d) object language 2) joan kerry, an american national, worked as a senior manager in her firm’s headquarters in new jersey. […]

1) which of the following is not a characteristic of strategic implementation of the mcdonald’s corporation? a) minimizing autonomy b) hiring locals whenever possible c) forming paradigm-busting arrangements with suppliers d) making minor changes to the standard menu based on […]

1) “the longer a person is away, the more difficult it is to get back into the swing of things.” in the context of repatriation, this often leads to ________. a) reverse culture shock b) expatriate retention c) assimilation d) […]

1) recognizing that one’s knowledge, perceptions, and beliefs are valid only for oneself and not for everyone else is known as ________. a) other-oriented role behavior b) orientation to knowledge c) tolerance for ambiguity d) interaction posture 2) according to […]

1) felix department store has over 900 stores in the u.s. and over 300 stores in mexico and canada. felix has been particularly successful in mexico, and the firm’s executives believe felix should expand into other latin american countries. as […]

1) which of the following is a policy of the electronic industry code of conduct (eicc)? a) excessive overtime can be propagated if it benefits the company b) child labor can be allowed when there is a shortage of employees […]