Question 1

In general,large current account deficits have to be financed by:

Accepted Answer

A) capital outflows abroad. 
B) capital inflows from abroad. 
C) trade barriers. 
D) none of the above. 
A) capital outflows abroad. 
B) capital inflows from abroad. 
C) trade barriers. 
D) none of the above. B

Question 2

For much of 2001 and 2002,McDonalds faced a(n):

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. A

Question 3

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

Accepted Answer

Consumer tastes and preferences changed as more individuals became concerned about the high-fat content of most fast foods.There were a number of lawsuits launched against the fast food industry with respect to health issues of their customers.The fast food industry was under competitive pressure from the emergence of "quick casual" restaurants.

Question 4

As McDonald's expanded globally,it was able to achieve:

Accepted Answer

A) economies of scope. 
B) economies of scale. 
C) diseconomies of scale. 
D) none of the above. 
A) economies of scope. 
B) economies of scale. 
C) diseconomies of scale. 
D) none of the above.

Question 5

The decrease in demand faced by McDonalds during 2001-2002 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

Give some examples of oligopolistic behavior among the major fast food companies.

Accepted Answer

The companies typica

Question 7

A joint venture allows a foreign firm to easier adjust to a new market and often meet various institutional requirements.

Accepted Answer

A) True 
 B)False

Question 8

The quoted in the textbook study of consumer behavior at Starbucks company stores demonstrated that including calorie count on menus had no impact on consumer behavior.

Accepted Answer

A) True 
 B)False

Question 9

The study quoted in the text demonstrated that calorie posting did not cause any significant changes in Starbucks revenue over all.

Accepted Answer

A) True 
 B)False

Question 10

Although McDonalds operates in a market structure with many competitors and substitute foods,it often engages in ________ with its major fast food competitors.

Accepted Answer

A) monopoly behavior. 
B) oligopoly behavior. 
C) competitive behavior. 
D) none of the above. 
A) monopoly behavior. 
B) oligopoly behavior. 
C) competitive behavior. 
D) none of the above.

Question 11

McDonald's partnership with Beijing's Department of Agriculture provided:

Accepted Answer

A) McDonald's with subsidies , suppliers, and distributional channels. 
B) McDonald's with just subsidies. 
C) McDonald's with just distributional channels. 
D) all of the above. 
A) McDonald's with subsidies , suppliers, and distributional channels. 
B) McDonald's with just subsidies. 
C) McDonald's with just distributional channels. 
D) all of the above.

Question 12

Managers can increase firm profits by:

Accepted Answer

A) increasing revenue only. 
B) decreasing costs only. 
C) increasing revenue and decreasing costs. 
D) none of the above. 
A) increasing revenue only. 
B) decreasing costs only. 
C) increasing revenue and decreasing costs. 
D) none of the above.

Question 13

In terms of location decisions,firms evaluate the extent to which the labor force is unionized.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

In 2001-2002,the fast food industry underwent tremendous growth.

Accepted Answer

A) True 
 B)False

Question 16

McDonald's and its major competitors compete based:

Accepted Answer

A) only on the price. 
B) only on the basis of product characteristics. 
C) on both the price and product characteristics. 
D) none of the above because the fast-food industry is perfectly competitive. 
A) only on the price. 
B) only on the basis of product characteristics. 
C) on both the price and product characteristics. 
D) none of the above because the fast-food industry is perfectly competitive.

Question 17

If capital inflows decrease due to higher interest rates in other countries and large amounts of import spending,there will be:

Accepted Answer

A) upward pressure on a country's exchange rate. 
B) downward pressure on a country's exchange rate. 
C) no pressure on a country's exchange rate. 
D) none of the above. 
A) upward pressure on a country's exchange rate. 
B) downward pressure on a country's exchange rate. 
C) no pressure on a country's exchange rate. 
D) none of the above.

Question 18

In 2001 and 2002,McDonald's tried to improve the quality of its service by hiring mystery shoppers to evaluate service,cleanliness,and food quality.

Accepted Answer

A) True 
 B)False

Question 19

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 20

An overvalued fixed exchange rate can be maintained only as long as:

Accepted Answer

A) the country's central bank reserves are available to support currency intervention in the foreign exchange market. 
B) the country's central bank can increase the domestic money supply. 
C) the country's government increases debt financing. 
D) none of the above. 
A) the country's central bank reserves are available to support currency intervention in the foreign exchange market. 
B) the country's central bank can increase the domestic money supply. 
C) the country's government increases debt financing. 
D) none of the above.

In general,large current account deficits have to be financed by:

For much of 2001 and 2002,McDonalds faced a(n):

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

As McDonald's expanded globally,it was able to achieve:

The decrease in demand faced by McDonalds during 2001-2002 can be attributed to:

Give some examples of oligopolistic behavior among the major fast food companies.

A joint venture allows a foreign firm to easier adjust to a new market and often meet various institutional requirements.

The quoted in the textbook study of consumer behavior at Starbucks company stores demonstrated that including calorie count on menus had no impact on consumer behavior.

The study quoted in the text demonstrated that calorie posting did not cause any significant changes in Starbucks revenue over all.

Although McDonalds operates in a market structure with many competitors and substitute foods,it often engages in ________ with its major fast food competitors.

McDonald's partnership with Beijing's Department of Agriculture provided:

Managers can increase firm profits by:

In terms of location decisions,firms evaluate the extent to which the labor force is unionized.

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

In 2001-2002,the fast food industry underwent tremendous growth.

McDonald's and its major competitors compete based:

If capital inflows decrease due to higher interest rates in other countries and large amounts of import spending,there will be:

In 2001 and 2002,McDonald's tried to improve the quality of its service by hiring mystery shoppers to evaluate service,cleanliness,and food quality.

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

An overvalued fixed exchange rate can be maintained only as long as:

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

In general,large current account deficits have to be financed by:

For much of 2001 and 2002,McDonalds faced a(n):

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

As McDonald's expanded globally,it was able to achieve:

The decrease in demand faced by McDonalds during 2001-2002 can be attributed to:

Give some examples of oligopolistic behavior among the major fast food companies.

A joint venture allows a foreign firm to easier adjust to a new market and often meet various institutional requirements.

The quoted in the textbook study of consumer behavior at Starbucks company stores demonstrated that including calorie count on menus had no impact on consumer behavior.

The study quoted in the text demonstrated that calorie posting did not cause any significant changes in Starbucks revenue over all.

Although McDonalds operates in a market structure with many competitors and substitute foods,it often engages in ________ with its major fast food competitors.

McDonald's partnership with Beijing's Department of Agriculture provided:

Managers can increase firm profits by:

In terms of location decisions,firms evaluate the extent to which the labor force is unionized.

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

In 2001-2002,the fast food industry underwent tremendous growth.

McDonald's and its major competitors compete based:

If capital inflows decrease due to higher interest rates in other countries and large amounts of import spending,there will be:

In 2001 and 2002,McDonald's tried to improve the quality of its service by hiring mystery shoppers to evaluate service,cleanliness,and food quality.

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

An overvalued fixed exchange rate can be maintained only as long as:

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