Archives: Quiz

c. summary of current performance as compared with past performance. d. situation analysis. e. opportunity and threat analysis. ANS: A PTS: 1 DIF: Difficulty: Easy OBJ: LO: 02-04 NAT: BUSPROG: Reflective Thinking STA: DISC: Marketing Plan KEY: Bloom’s: Knowledge 70. […]

Chapter 2—Planning, Implementing, and Evaluating Marketing Strategies ESSAY 1. Describe the process of strategic planning. How does this process help marketing managers? ANS: Answer not provided. PTS: 1 DIF: Difficulty: Easy OBJ: LO: 02-01 NAT: BUSPROG: Analytic STA: DISC: Strategy […]

76. Wonder introduced a new bread made with light whole wheat and packaged in smaller loaves as a response to the number of health-conscious customers who live alone. In this case, Wonder was most likely following the ________. a. selling […]

Chapter 1—An Overview of Strategic Marketing ESSAY 1. Suppose you are a marketing manager at Procter & Gamble for a new, all-purpose cleaning product. List four marketing mix variables and describe the decisions and activities associated with each. ANS: Answer […]

76. The Earned Income Tax Credit a. tends to increase income inequality. b. is a program that provides additional income to workers with above-average incomes. c. tends to reduce income inequality. d. is both a and b. 77. Which of […]

Microeconomics Chapter 15—Income Inequality and Poverty MULTIPLE CHOICE 1. In 2009, high-income families (the top 20 percent) in the United States earned approximately ____ percent of the total before-tax income. a. 34 b. 48 c. 62 d. 79 2. Imagine […]

70. If profit-seeking major oil companies began to use current profits from the oil business to buy department stores and hotel chains, economic analysis suggests that a. oil company profits were high relative to other possible investment opportunities. b. oil […]

Microeconomics Chapter 14—Investment, the Capital Market, and the Wealth of Nations MULTIPLE CHOICE 1. Which of the following is true of saving and investment? a. There is no relationship between saving and investment; people can invest without having to save. […]

60. The real wages of workers will tend to be high when a. output per worker is high. b. capital is scarce. c. industries are automating at a slow rate. d. profits are low. ANS: A PTS: 1 DIF: Moderate […]

Microeconomics Chapter 13—Earnings, Productivity, and the Job Market MULTIPLE CHOICE 1. If all persons had identical preferences and productivity factors (ability, skill level, education, experience, etc.), the highest paying jobs would be the most a. prestigious. b. convenient. c. undesirable. […]

Microeconomics Special Topic 12—Difficult Environmental Cases and the Role of Government MULTIPLE CHOICE 1. When it is difficult to assign and enforce property rights, a. markets result in outcomes that are often inefficient. b. courts can easily negotiate efficient outcomes. […]

b. increases from 3,000 to 10,000. c. decreases from 10,000 to 3,000. d. decreases from 6,000 to 3,000. The figure below depicts a production function for a firm that produces cookies. Figure 12-4 150. Refer to Figure 12-4. As the […]

b. 3 c. 4 d. 5 94. A decrease in the marginal product of labor would be represented by a. increase in labor demand. b. decrease in labor demand. c. increase in the quantity demanded of labor. d. decrease in […]

Microeconomics Chapter 12—The Supply of and Demand for Productive Resources MULTIPLE CHOICE 1. The demand curve for a human resource will be more elastic the a. more and better substitutes are available for it. b. more difficult it is to […]

Microeconomics Special Topic 11—The Question of Resource Exhaustion MULTIPLE CHOICE 1. Predictions of severe shortages due to impending natural resource depletion a. are widely accepted by resource economists even though such predictions are a relatively new occurrence. b. have been […]

Microeconomics Chapter 11 B—Price-Searcher Markets with High Entry Barriers MULTIPLE CHOICE 230. For which of the following reasons do regulatory agencies sometimes fail to bring the price and output of a natural monopoly to the ideal level? a. The regulatory […]

172. The demand and cost conditions in an industry are as depicted in Figure 11-8. In the viewpoint of economic efficiency, what would the ideal price and output be? a. price, $10; quantity produced, 100 b. price, $15; quantity produced, […]

93. Suppose Ford, GM, and Dodge make the majority of pick-up trucks sold in the United States If they all sell for approximately the same price, and Ford offers a $2,000 rebate on new truck sales, what can Ford expect […]

Microeconomics Chapter 11 A—Price-Searcher Markets with High Entry Barriers MULTIPLE CHOICE 1. When economists talk about a barrier to entry, they are referring to a. a factor that makes it difficult for potential competitors to enter a market. b. the […]

Microeconomics Special Topic 10—Do Labor Unions Increase the Wages of Workers? MULTIPLE CHOICE 1. Since 1970, union membership, as a percent of the labor force, has a. remained virtually unchanged. b. increased slightly. c. declined steadily. d. increased significantly. 2. […]

161. Given the cost and demand conditions depicted in Figure 10-10 for the competitive price-searcher firm, what is the price that the firm should charge if it wants to maximize its profit? a. 20 b. 30 c. 40 d. 50 […]

b. higher short-run prices, short-run profits, and the entry of additional firms into the market. c. higher short-run prices and the exit of firms from the market due to economies of scale. d. no change in prices in the short […]

Microeconomics Chapter 10—Price-Searcher Markets with Low Entry Barriers MULTIPLE CHOICE 1. In a competitive price-searcher market, the firms will a. be able to choose their price, and the entry barriers into the market will be low. b. be able to […]

Microeconomics Special Topic 9—Earnings Differences Between Men and Women MULTIPLE CHOICE 1. Since 1980, the female/male annual earnings ratio of full-time workers has been ____, while the labor force participation rate of women has been ____ during this same period. […]

Microeconomics Chapter 9 B—Price Takers and the Competitive Process MULTIPLE CHOICE 238. Competitive price-taker markets are characterized by a. low entry barriers and a large number of firms selling a homogeneous product. b. intense rivalry among firms selling differentiated products. […]

a. output, 3; maximum profit, $3 loss b. output, 5; maximum profit, zero c. output, 5; maximum profit, slightly less than $5 d. output, 6; maximum profit, slightly less than $6 176. If the market price in Figure 9-5 fell […]

91. A firm is currently operating where the MC of the last unit produced is $84, and the MR of this unit is $70. What would you advise this firm to do? a. Shut down. b. Increase output. c. Stay […]

Microeconomics Chapter 9 A—Price Takers and the Competitive Process MULTIPLE CHOICE 1. Which of the following is a primary difference between price searchers and price takers? a. Price searchers maximize profits, but price takers do not. b. Price searchers have […]

Microeconomics Special Topic 8—Education: Problems and Performance MULTIPLE CHOICE 1. Between 1970 and 2009, the achievement scores of American students ____, and real spending per student in American public elementary and secondary schools ____. a. rose; fell b. rose; rose […]

ANS: The obvious explicit costs would include the price of the stand, the lemons, sugar, water, sign, etc. It may also require the purchase of a license and the paying of taxes, depending on the government regulations of the particular […]

164. At what output does the firm depicted in Figure 8-6 begin to experience diminishing marginal returns to its variable factors of production? a. q1 b. q2 c. q3 d. an output beyond q3 165. At what output does the […]

98. Marginal cost is defined as the increase in total cost resulting from an increase in a. one unit of output. b. output of 100 units. c. a firm’s plant size. d. one unit of labor. ANS: A PTS: 1 […]

Microeconomics Chapter 8 A—Costs and the Supply of Goods MULTIPLE CHOICE 1. Which of the following is most likely to be an implicit cost of production? a. property taxes on a building owned by the firm b. transportation costs paid […]

Microeconomics Special Topic 7—The Economics of Healthcare MULTIPLE CHOICE 1. Real expenditures on Medicare and Medicaid a. rose during the 1970s and 1980s, but they have been declining since 1990. b. fell during the 1970s and 1980s, but they have […]

Figure 7-11 162. Refer to Figure 7-11. As price falls from PA to PB, which demand curve represents the most elastic demand? a. D1 b. D2 c. D3 d. All of the above are equally elastic. ANS: A PTS: 1 […]

93. Compared to the long run, consumers typically ____ to price changes in the short run. a. are very responsive b. are more demand sensitive c. are less demand sensitive d. do not respond at all e. overreact ANS: C […]

Microeconomics Chapter 7—Consumer Choice and Elasticity MULTIPLE CHOICE 1. If Mr. Smith thinks the last dollar spent on shirts yields less satisfaction than the last dollar spent on cola, and Smith is a utility-maximizing consumer, he should a. decrease his […]

Microeconomics Special Topic 6—Lessons from the Great Depression MULTIPLE CHOICE 1. “The Great Depression was caused by the 1929 stock market crash.” Which of the following is an indication that this statement is false? a. The stock market had regained […]

135. Refer to Scenario 6-1. This statement is probably a. incorrect because voters are well informed on a wide range of political issues. b. incorrect because the political process dilutes the influence of special interest groups, because like other citizens, […]

the legislator to arrange for pork-barrel projects that provide concentrated benefits for his district. c. Logrolling increases the likelihood that pork-barrel projects will be approved. d. All of the above are correct. 92. Legislation that offers immediate and easily recognized […]

Microeconomics Chapter 6—The Economics of Collective Decision-Making MULTIPLE CHOICE 1. In 2008, the combined expenditures of federal, state, and local governments in the United States were approximately a. 14 percent of GDP. b. 24 percent of GDP. c. 35 percent […]

Microeconomics Special Topic 5—The Crisis of 2008: Causes and Lessons for the Future MULTIPLE CHOICE 1. An analysis of housing prices between 1987 and 2008 indicates that prices a. increased sharply in the five years leading up to the housing […]

c. Decision makers in the market are motivated by self-interest, whereas, political decision makers are primarily motivated by the desire to help others. d. Public goods tend to be undersupplied through the market since it is difficult for potential suppliers […]

Microeconomics Chapter 5—Difficult Cases for the Market and the Role of Government MULTIPLE CHOICE 1. Which of the following is the most fundamental function of government? a. protection of individuals and their property b. imposing progressive taxes to fund income-transfer […]

Microeconomics Special Topic 4—Great Debates in Economics: Keynes Versus Hayek MULTIPLE CHOICE 1. The General Theory of John Maynard Keynes exerted a major impact on macroeconomics during the 20th century primarily because a. it provided the only logically consistent view […]

279. Refer to Figure 4-25. The equilibrium price before the tax is imposed is a. P1. b. P2. c. P3. d. impossible to determine from the figure. 280. Refer to Figure 4-25. The price that buyers pay after the tax […]

Microeconomics Chapter 4 B—Supply and Demand: Applications and Extensions MULTIPLE CHOICE Figure 4-14 234. Figure 4-14 depicts the milk market. The horizontal line, P, represents a price ceiling imposed by the government. Which of the following is true? a. In […]

184. The actual benefit of a government subsidy is determined primarily by a. the elasticities of demand and supply. b. the legal (or statutory) assignment of the subsidy c. the number of exchanges that are made possible as a result […]

d. lump-sum taxes. 100. If the government wants to generate large revenues from placing a tax on the consumption of a particular good, it should choose a good for which a. the demand is price elastic b. the demand is […]

Microeconomics Chapter 4 A—Supply and Demand: Applications and Extensions MULTIPLE CHOICE 1. Other things constant, a decrease in the demand for computers will a. increase the price of computers. b. increase the quantity supplied of computers. c. increase the demand […]