Question 1

To cut costs in the face of declining demand and increased competition, many fast food restaurants have focused on reducing:

Accepted Answer

A)  labor costs. 
B)  utility costs. 
C)  paper napkin costs. 
D)  none of the above. 
A)  labor costs. 
B)  utility costs. 
C)  paper napkin costs. 
D)  none of the above.

Question 2

In 1988, the Mexican government passed an agreement called the which included commitments to reductions of the fiscal deficit, tightening of monetary policy, liberalization of trade, and an incomes policy that covered wages, prices, and exchange rates.

Accepted Answer

A)  Real Plan. 
B)  Pacto. 
C)  NAFTA agreement. 
D)  none of the above. 
A)  Real Plan. 
B)  Pacto. 
C)  NAFTA agreement. 
D)  none of the above.

Question 3

Briefly state several reasons for the decline in sales for McDonald's in 2001-2002.

Accepted Answer

Consumer tastes and preferences changed

Question 4

McDonalds has traditionally been popular among Chinese children.

Accepted Answer

A) True 
 B)False

Question 5

The decrease in demand faced by McDonalds can be attributed to:

Accepted Answer

A)  decrease in consumer preference for high-fat content food. 
B)  increase in lawsuits. 
C)  increase in competitive pressures. 
D)  all of the above. 
A)  decrease in consumer preference for high-fat content food. 
B)  increase in lawsuits. 
C)  increase in competitive pressures. 
D)  all of the above.

Question 6

Mexico's system of regional supermarket remained intact until the 1980s.

Accepted Answer

A)  oligopolies. 
B)  monopolies. 
C)  monopolistic competitors. 
D)  none of the above. 
A)  oligopolies. 
B)  monopolies. 
C)  monopolistic competitors. 
D)  none of the above.

Question 7

McDonald's can offset the decline in demand by influencing the different variables that affected the demand function for their products.

Accepted Answer

A) True 
 B)False

Question 8

If a good is price elastic, a decrease in price will:

Accepted Answer

A)  decrease total revenue. 
B)  increase total revenue. 
C)  not affect revenue. 
D)  none of the above. 
A)  decrease total revenue. 
B)  increase total revenue. 
C)  not affect revenue. 
D)  none of the above.

Question 9

In the study of the demand for fast food, the two price and income variables, fast food price and income per capita, are statistically significant.

Accepted Answer

A) True 
 B)False

Question 10

McDonald's current expansion plans into China include:

Accepted Answer

A)  expansion of drive-throughs only. 
B)  both seat down restaurants and drive throughs. 
C)  seat down restaurants only. 
D)  none of the above. 
A)  expansion of drive-throughs only. 
B)  both seat down restaurants and drive throughs. 
C)  seat down restaurants only. 
D)  none of the above.

Question 11

When entering the Mexican market, Wal-Mart lacked the leverage with Mexican vendors that gave it an advantage in the U.S.

Accepted Answer

A) True 
 B)False

Question 12

McDonald's was able to avoid currency problems with respect to global operations through:

Accepted Answer

A)  the options market. 
B)  the futures market. 
C)  currency hedges. 
D)  barter arrangements. 
A)  the options market. 
B)  the futures market. 
C)  currency hedges. 
D)  barter arrangements.

Question 13

The increase in U.S. interest rates in 1994 resulted in:

Accepted Answer

A)  capital outflows from Mexico. 
B)  capital inflows to Mexico. 
C)  capital outflows from the U.S. 
D)  all of the above. 
A)  capital outflows from Mexico. 
B)  capital inflows to Mexico. 
C)  capital outflows from the U.S. 
D)  all of the above.

Question 14

What is the economic rationale for the price elasticity in the study of the demand for fast food to be elastic?

Accepted Answer

The sensitivity to price could have resu

Question 15

In 1994, a constitutional amendment was passed in Mexico to:

Accepted Answer

A)  create trade barriers. 
B)  create a fully independent central bank. 
C)  create a partially independent central bank. 
D)  none of the above. 
A)  create trade barriers. 
B)  create a fully independent central bank. 
C)  create a partially independent central bank. 
D)  none of the above.

Question 16

Discuss the limiting factors to Wal-Mart's success in Mexico?

Accepted Answer

1) it took advantage of situations that

Question 17

Mexico's largest trading partner is:

Accepted Answer

A)  the U.S. 
B)  Canada. 
C)  Brazil. 
D)  none of the above. 
A)  the U.S. 
B)  Canada. 
C)  Brazil. 
D)  none of the above.

Question 18

The U.S., IMF, and the Bank of Settlements provided loans to Mexico in order to restore investor confidence and stabilize the peso by reducing capital outflows.

Accepted Answer

A) True 
 B)False

Question 19

Among its major competitors, McDonald's behaves as an oligopoly.

Accepted Answer

A) True 
 B)False

Question 20

For much of 2001 and 2002, McDonalds faced an):

Accepted Answer

A)  decrease in demand. 
B)  increase in demand. 
C)  increase in profits. 
D)  none of the above. 
A)  decrease in demand. 
B)  increase in demand. 
C)  increase in profits. 
D)  none of the above.

To cut costs in the face of declining demand and increased competition, many fast food restaurants have focused on reducing:

In 1988, the Mexican government passed an agreement called the which included commitments to reductions of the fiscal deficit, tightening of monetary policy, liberalization of trade, and an incomes policy that covered wages, prices, and exchange rates.

Briefly state several reasons for the decline in sales for McDonald's in 2001-2002.

McDonalds has traditionally been popular among Chinese children.

The decrease in demand faced by McDonalds can be attributed to:

Mexico's system of regional supermarket remained intact until the 1980s.

McDonald's can offset the decline in demand by influencing the different variables that affected the demand function for their products.

If a good is price elastic, a decrease in price will:

In the study of the demand for fast food, the two price and income variables, fast food price and income per capita, are statistically significant.

McDonald's current expansion plans into China include:

When entering the Mexican market, Wal-Mart lacked the leverage with Mexican vendors that gave it an advantage in the U.S.

McDonald's was able to avoid currency problems with respect to global operations through:

The increase in U.S. interest rates in 1994 resulted in:

What is the economic rationale for the price elasticity in the study of the demand for fast food to be elastic?

In 1994, a constitutional amendment was passed in Mexico to:

Discuss the limiting factors to Wal-Mart's success in Mexico?

Mexico's largest trading partner is:

The U.S., IMF, and the Bank of Settlements provided loans to Mexico in order to restore investor confidence and stabilize the peso by reducing capital outflows.

Among its major competitors, McDonald's behaves as an oligopoly.

For much of 2001 and 2002, McDonalds faced an):

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Filters

Exam 16: Combining Micro and Macro Analysis for Managerial Decision Making

To cut costs in the face of declining demand and increased competition, many fast food restaurants have focused on reducing:

In 1988, the Mexican government passed an agreement called the which included commitments to reductions of the fiscal deficit, tightening of monetary policy, liberalization of trade, and an incomes policy that covered wages, prices, and exchange rates.

Briefly state several reasons for the decline in sales for McDonald's in 2001-2002.

McDonalds has traditionally been popular among Chinese children.

The decrease in demand faced by McDonalds can be attributed to:

Mexico's system of regional supermarket remained intact until the 1980s.

McDonald's can offset the decline in demand by influencing the different variables that affected the demand function for their products.

If a good is price elastic, a decrease in price will:

In the study of the demand for fast food, the two price and income variables, fast food price and income per capita, are statistically significant.

McDonald's current expansion plans into China include:

When entering the Mexican market, Wal-Mart lacked the leverage with Mexican vendors that gave it an advantage in the U.S.

McDonald's was able to avoid currency problems with respect to global operations through:

The increase in U.S. interest rates in 1994 resulted in:

What is the economic rationale for the price elasticity in the study of the demand for fast food to be elastic?

In 1994, a constitutional amendment was passed in Mexico to:

Discuss the limiting factors to Wal-Mart's success in Mexico?

Mexico's largest trading partner is:

The U.S., IMF, and the Bank of Settlements provided loans to Mexico in order to restore investor confidence and stabilize the peso by reducing capital outflows.

Among its major competitors, McDonald's behaves as an oligopoly.

For much of 2001 and 2002, McDonalds faced an):

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Filters