ECO 415 Final Exam Test Use to Study
Pick the easiest way to pass your homework with ECO 415 Final Exam Test Use to Study1) Transaction costs includeA) costs of negotiating contracts with other firms.B) cost of enforcing contracts.C) the existence of asset-specificity.D) All of the above.2) Financial risk is associated with changes inA) the demand for a firm's products.B) a firm's debt.C) a firm's labor costs.D) government regulations of a firm's activities.3) ________ risk involves variation in returns due to the ups and downs of the economy, the industry and the firm.A) Structural B) Fluctuational C) Business D) Financial4) A firm's "normal profit" is best characterized by theA) average of a firm's profits over the past five years.B) amount of profit necessary to keep the price of a firm's stock from changing.C) amount of profit a firm could earn in its next best alternative activity.D) the average amount of profit earned in the firm's industry.5) A firm earns a normal profit when its total revenues just offset both the ________ cost and ________ cost.A) accounting- opportunity B) accounting- replacementC) historical- replacement D) explicit- accounting6) How long is the "short-run" time period in the economic analysis of the market?A) three months or one business quarterB) total time in which sellers already in the market respond to changes in demand and equilibrium priceC) total amount of time it takes new sellers to enter the marketD) total amount of time it takes original sellers to leave the market7) The "law" of demand can be best described byA) people will buy things that they enjoy.B) if incomes rise, people will buy more.C) a rise in price will cause shortages.D) a fall in price will increase quantity demanded.8) All of the following are non-price determinants of demand except?A) tastes and preferences B) incomeC) technology D) future expectations9) Which of the following refers to a shift in the demand curve?A) "This new advertising campaign should really increase our demand."B) "Let's drop our price to increase our demand."C) "We dare not raise our price because our demand will drop."D) "If new sellers enter the market, the demand for the product is bound to increase."10) Two goods are ________ if the quantity consumed of one increases when the price of theother decreases.A) normal B) superiorC) complementary D) substitute11) Economists consider which of the following costs to be irrelevant to a short-run business decision?A) opportunity cost B) out-of-pocket costC) historical cost D) replacement cost12) Costs of production that change with the rate of output are:A) Sunk costsB) Opportunity costsC) Fixed costsD) Variable costs13) Which of the following is most likely a fixed cost?A) Expenditures for raw materialsB) Wages for unskilled laborC) Fuel costD) Property Taxes14) The distinction between sunk and incremental costs is most helpful in answering whichquestion?A) How many more people should be added to the production process?B) What is the correct price to charge?C) Should we begin to build a new factory?D) Should we continue developing a new software application that we began last year?15) The main factor that explains the difference between accounting cost and economic cost isA) opportunity cost.B) fixed cost.C) variable cost.D) All of the above help to explain the difference.16) Which of the following markets comes closes to the model of perfect competition?A) Automobile industry B) Information Technology industryC) Aerospace industry D) Agriculture17) Which of the following characteristics is most important in differentiating between perfectcompetition and all other types of markets?A) whether or not the product is standardizedB) whether or not there is complete market information about priceC) whether or not firms are price takersD) All of the above are equally important.18) If a perfectly competitive firm incurs an economic loss, it should:A) shut down immediately.B) try to raise its price.C) shut down in the long run.D) shut down if this loss exceeds variable cost.19) Which of the following correctly completes this statement? The monopolist's marginal revenueA) will be greater than priceB) will be less than priceC) will be equal to price.D) will be greater than total revenues20) Monopoly is characterized byA) unique products.B) market entry and exit difficult or impossible.C) non-price competition not necessary.D) All of the above.21) Which of the following industries is most likely to represent the Monopolistic competition market structure?A) automobiles B) tobacco productsC) utility companies D) farm equipment22) Which of the following represents a good example of an Oligopoly?A) The Agriculture industry B) A Public UtilityC) The Automobile industry D) The Restaurant Industry23) Mutual interdependence means that:A) all firms are price takers.B) each firm sets its own price based on its anticipated reaction by its competitors.C) all firms collaborate to establish one price.D) all firms are free to enter or leave the market.24) In which of these markets would the firms be facing the least elastic demand curve?A) perfect competition B) pure monopolyC) monopolistic competition D) oligopoly25) The four-firm concentration ratio:A) indicates the total profitability among the top four firms in an industry.B) is an indicator of the degree of monopolistic competition.C) indicates the presence and intensity of an oligopoly market.D) is used by the government as a basis for anti-trust cases.26). What term describes when a firm is using the least-cost production process?a) Agency efficiencyb) Technical efficiencyc) Lean compliantd) Economizinge) Six sigma compliant27) Why are the current health care systems on the rise being built around the integration of clinical information technology and disease management systems?a) They both have high costsb) They both are new trends in health carec) They are easy to integrated) They do not require a significant investment to integratee) They both require asset specificity and coordination28) What concept describes the situation where the owner of an asset grants another party the right to use that asset, but the owner retains all controlling rights that are not explicitly stipulated in the contract?a) Asset specificityb) Non-contract rights of ownershipc) Control rights agreementd) Residual rights of controle) Coordination29) What happens when the process by which governance develops exhibits path dependence?a) Governance arrangements split decision rights and controls between two related firmsb) Governance arrangements are optimalc) Past circumstances could exclude certain possible governance arrangements in the futured) The firm will split into two entities to reduce the governance issues createde) The governance will form effectively30) What type of strategic alliance involves two or more firms creating and together owning a new independent organization?a) Partnershipb) Tapered integrationc) Close-knit semi-formal relationshipd) Mutual agreemente) Joint venture31) Which of the following processes is most representative of a vertically integrated firm on the âEURoemakeâEUR
Pick the easiest way to pass your homework with ECO 415 Final Exam Test Use to Study1) Transaction costs includeA) costs of negotiating contracts with other firms.B) cost of enforcing contracts.C) the existence of asset-specificity.D) All of the above.2) Financial risk is associated with changes inA) the demand for a firm's products.B) a firm's debt.C) a firm's labor costs.D) government regulations of a firm's activities.3) ________ risk involves variation in returns due to the ups and downs of the economy, the industry and the firm.A) Structural B) Fluctuational C) Business D) Financial4) A firm's "normal profit" is best characterized by theA) average of a firm's profits over the past five years.B) amount of profit necessary to keep the price of a firm's stock from changing.C) amount of profit a firm could earn in its next best alternative activity.D) the average amount of profit earned in the firm's industry.5) A firm earns a normal profit when its total revenues just offset both the ________ cost and ________ cost.A) accounting- opportunity B) accounting- replacementC) historical- replacement D) explicit- accounting6) How long is the "short-run" time period in the economic analysis of the market?A) three months or one business quarterB) total time in which sellers already in the market respond to changes in demand and equilibrium priceC) total amount of time it takes new sellers to enter the marketD) total amount of time it takes original sellers to leave the market7) The "law" of demand can be best described byA) people will buy things that they enjoy.B) if incomes rise, people will buy more.C) a rise in price will cause shortages.D) a fall in price will increase quantity demanded.8) All of the following are non-price determinants of demand except?A) tastes and preferences B) incomeC) technology D) future expectations9) Which of the following refers to a shift in the demand curve?A) "This new advertising campaign should really increase our demand."B) "Let's drop our price to increase our demand."C) "We dare not raise our price because our demand will drop."D) "If new sellers enter the market, the demand for the product is bound to increase."10) Two goods are ________ if the quantity consumed of one increases when the price of theother decreases.A) normal B) superiorC) complementary D) substitute11) Economists consider which of the following costs to be irrelevant to a short-run business decision?A) opportunity cost B) out-of-pocket costC) historical cost D) replacement cost12) Costs of production that change with the rate of output are:A) Sunk costsB) Opportunity costsC) Fixed costsD) Variable costs13) Which of the following is most likely a fixed cost?A) Expenditures for raw materialsB) Wages for unskilled laborC) Fuel costD) Property Taxes14) The distinction between sunk and incremental costs is most helpful in answering whichquestion?A) How many more people should be added to the production process?B) What is the correct price to charge?C) Should we begin to build a new factory?D) Should we continue developing a new software application that we began last year?15) The main factor that explains the difference between accounting cost and economic cost isA) opportunity cost.B) fixed cost.C) variable cost.D) All of the above help to explain the difference.16) Which of the following markets comes closes to the model of perfect competition?A) Automobile industry B) Information Technology industryC) Aerospace industry D) Agriculture17) Which of the following characteristics is most important in differentiating between perfectcompetition and all other types of markets?A) whether or not the product is standardizedB) whether or not there is complete market information about priceC) whether or not firms are price takersD) All of the above are equally important.18) If a perfectly competitive firm incurs an economic loss, it should:A) shut down immediately.B) try to raise its price.C) shut down in the long run.D) shut down if this loss exceeds variable cost.19) Which of the following correctly completes this statement? The monopolist's marginal revenueA) will be greater than priceB) will be less than priceC) will be equal to price.D) will be greater than total revenues20) Monopoly is characterized byA) unique products.B) market entry and exit difficult or impossible.C) non-price competition not necessary.D) All of the above.21) Which of the following industries is most likely to represent the Monopolistic competition market structure?A) automobiles B) tobacco productsC) utility companies D) farm equipment22) Which of the following represents a good example of an Oligopoly?A) The Agriculture industry B) A Public UtilityC) The Automobile industry D) The Restaurant Industry23) Mutual interdependence means that:A) all firms are price takers.B) each firm sets its own price based on its anticipated reaction by its competitors.C) all firms collaborate to establish one price.D) all firms are free to enter or leave the market.24) In which of these markets would the firms be facing the least elastic demand curve?A) perfect competition B) pure monopolyC) monopolistic competition D) oligopoly25) The four-firm concentration ratio:A) indicates the total profitability among the top four firms in an industry.B) is an indicator of the degree of monopolistic competition.C) indicates the presence and intensity of an oligopoly market.D) is used by the government as a basis for anti-trust cases.26). What term describes when a firm is using the least-cost production process?a) Agency efficiencyb) Technical efficiencyc) Lean compliantd) Economizinge) Six sigma compliant27) Why are the current health care systems on the rise being built around the integration of clinical information technology and disease management systems?a) They both have high costsb) They both are new trends in health carec) They are easy to integrated) They do not require a significant investment to integratee) They both require asset specificity and coordination28) What concept describes the situation where the owner of an asset grants another party the right to use that asset, but the owner retains all controlling rights that are not explicitly stipulated in the contract?a) Asset specificityb) Non-contract rights of ownershipc) Control rights agreementd) Residual rights of controle) Coordination29) What happens when the process by which governance develops exhibits path dependence?a) Governance arrangements split decision rights and controls between two related firmsb) Governance arrangements are optimalc) Past circumstances could exclude certain possible governance arrangements in the futured) The firm will split into two entities to reduce the governance issues createde) The governance will form effectively30) What type of strategic alliance involves two or more firms creating and together owning a new independent organization?a) Partnershipb) Tapered integrationc) Close-knit semi-formal relationshipd) Mutual agreemente) Joint venture31) Which of the following processes is most representative of a vertically integrated firm on the âEURoemakeâEUR