Deck 46: Walmart: Always Low Prices and Low Wages- Always

Question 1

In the locations where Walmart Supercenters are part of the grocery market, the market form is

A)monopoly.
B)oligopoly.
C)monopolistic competition.
D)perfect competition.

Answer 1

C

Question 2

The notion that there are no consumers who lose when a Walmart enters a city

A)is right, because consumers can always shop elsewhere.
B)is right because everyone prefers Walmart.
C)is wrong because some consumers shop elsewhere.
D)is wrong because some consumers prefer shopping at stores that ultimately close.

Answer 2

D

Question 3

Theoretically, a firm can enter an industry with low prices, drive out their competition and take advantage of their newly achieved monopoly power to raise prices, but the evidence is that Walmart has

A)tried to do this and failed for economic reasons.
B)tried to do this and failed for legal reasons.
C)succeeded at doing this.
D)never tried to do this.

Answer 3

D

Question 4

Walmart's prices are _________ national grocery averages.

A)above
B)50% lower than
C)15-22% lower than
D)3-7% lower than

Question 5

If you got a new job and moved to Dale, Indiana (population 1,500)you would expect to find two grocery stores, the market form is

A)monopoly.
B)oligopoly.
C)monopolistic competition.
D)perfect competition.

Question 6

Walmart entered the grocery business in the 1990s, by 2005 it was the _____ grocery chain in the U.S.

A)largest
B)second largest
C)third largest
D)fourth largest

Question 7

The typical annual gain to consumers who switch to Walmart is between ______ per store.

A)$15 million and $33 million
B)$100 million and $150 million
C)$31 million and $40 million
D)$250 million and $300 million

Question 8

The typical Walmart Supercenter sells between _____ worth of goods per year.

A)$1 million and $2 million
B)$200 million and $250 million
C)$100 million and $150 million
D)$1 billion and $2 billion

Question 9

In very small towns where there is only one grocery store, the market form is

A)monopoly.
B)oligopoly.
C)monopolistic competition.
D)perfect competition.

Question 10

Walmart has an impact on workers, even in states where they have few stores, because

A)their pricing policies compel firms to outsource production to low-cost foreign locations.
B)their web-stores are dominant.
C)they rarely buy from firms in states in which they have stores.
D)they buy American only.

Question 11

Members of IGA are advised by that organization to

A)"out Walmart" Walmart by lowering prices.
B)hire less qualified people to keep costs down.
C)sell exactly the same goods Walmart does.
D)provide a level of service, community involvement, and types of goods Walmart does not.

Question 12

Walmart accounts for ____ of U.S. GDP.

A)less than 1%
B)nearly 3%
C)10%
D)15%

Question 13

When Walmart enters a city, the net effect upon consumers is that they

A)lose about as much as they win.
B)win.
C)lose.
D)never knew what hit them.

Question 14

Independent grocery stores are best-advised to

A)"out Walmart" Walmart by lowering prices.
B)hire less qualified people to keep costs down.
C)sell exactly the same goods Walmart does.
D)provide a level of service, community involvement, and types of goods Walmart does not.

Question 15

Economists measure the degree to which consumers lose when Walmart comes to a city by looking that their willingness to pay more at others stores. This measure is called

A)surveyed preferences.
B)understated preferences.
C)revealed preferences.
D)unrequited preferences.

Question 16

In small towns where there are two grocery stores, the market form is

A)monopoly.
B)oligopoly.
C)monopolistic competition.
D)perfect competition.

Question 17

If you got a new job and moved to Indianapolis, Indiana (population 800,000)you would expect to find more than 100 grocery stores (several Walmart Supercenters and Super Targets, several Krogers, Marshes and dozens of IGA affiliates and dozens more independent grocery stores), the market form is

A)monopoly.
B)oligopoly.
C)monopolistic competition.
D)perfect competition.

Question 18

If you got a new job and moved to Terre Haute, Indiana (population 60,000)you would expect to find ten grocery stores (two Walmart Supercenters, three Krogers, a Meijer, two IGA affiliates, and two independent grocery stores), the market form is

A)monopoly.
B)oligopoly.
C)monopolistic competition.
D)perfect competition.

Question 19

In most larger cities where there are several grocery stores, the market form is

A)monopoly.
B)oligopoly.
C)monopolistic competition.
D)perfect competition.

Question 20

Economists measure the degree to which consumers win when Walmart comes to a city by looking at changes to

A)consumer spending.
B)consumer surplus.
C)elasticity of demand.
D)producer surplus.

Question 21

Nationally, the place you are most likely to find a butcher creating special cuts for customers is

A)a Walmart or other Superstore.
B)a Sam's or Costco warehouse club.
C)a national chain grocery store.
D)an independent or IGA affiliated grocery store.

Question 22

One non-academic source has suggested that Walmart's efficiencies actually tend to

A)increase total employment locally.
B)be offset by its inefficiencies, so that total employment is unchanged locally.
C)reduce total employment locally.
D)be matched by price increases to its customers, explaining the company's spectacular profitability.

Question 23

When a new Walmart locates in an area, a business likely to be helped is a

A)nearby gas station.
B)distant gas station.
C)nearby grocery store.
D)distant hospital.

Question 24

Workers at Walmart are paid ______ their unionized counterparts.

A)much more than
B)more than
C)the same
D)less than

Question 25

Walmart hires approximately _____ employees per Supercenter store.

A)100
B)200
C)300
D)450

Question 26

Walmart tends to ______ sales tax collections in the community.

A)double
B)increase
C)have little effect on
D)decrease

Question 27

Walmart grocery sales are _______ times the sales of the next-largest grocery chain (Kroger).

A)more than twenty
B)exactly ten
C)between three and four
D)one and one-half

Question 28

Nationally, the place you are most likely to find sponsors for youth athletic teams are among the

A)Walmarts or other Superstores.
B)Sam's or Costco warehouse clubs.
C)national chain grocery stores.
D)independent or IGA affiliated grocery stores.

Question 29

When a Walmart hires people for a new store, economists suggest that

A)more workers are actually laid off at other establishments.
B)at least some workers are laid off at other establishments.
C)the same number of workers are laid off at other establishments.
D)even more workers are added at other establishments.

Question 30

When a new Walmart locates in an area, other retail stores and restaurants often locate nearby, exhibiting what economists call Walmart's ________ factor.

A)"pull"
B)"push"
C)exponential
D)catalogue sales

Question 31

The pay differential between Walmart and unionized grocery stores is around

A)$1 per hour.
B)$5 per hour.
C)$8 per hour.
D)$ 15 per hour.

Question 32

Nationally, the place you are most likely to find a community leader is among the owners/managers of

A)a Walmart or other Superstore.
B)a Sam's or Costco warehouse club.
C)a national chain grocery store.
D)an independent or IGA affiliated grocery store.

Question 33

Walmart's share of all grocery sales made by the ten largest grocery chains is approximately

A)49%.
B)11%.
C)4%.
D)2%.

Question 34

It is noted by some sociologists that a new Walmart store in town will

A)raise prices.
B)pay exorbitant wages.
C)provide extensive same-sex benefits.
D)negatively impact community leadership.

Question 35

When a new Walmart comes to a city, ________ percent of sales at the Walmart would have occurred in the city anyway.

A)ninety to ninety-five
B)seventy to eighty
C)fifty to sixty
D)twenty to thirty

Question 36

When a new Walmart locates in an area, other businesses in the area are

A)all helped.
B)all hurt.
C)all unaffected.
D)both helped and hurt.

Question 37

Which of the following is an example of Walmart's "pull" factor?

A)a new Starbucks locates near the Walmart.
B)an IGA store tries to go head-to-head with Walmart.
C)a Super Kmart tries to go head-to-head with Walmart.
D)a new Starbucks locates across town.

Question 38

When a new Walmart comes to a city, ________ percent of sales at the Walmart would not have occurred in the city.

A)one to two
B)five to ten
C)twenty to thirty
D)forty to fifty

Question 39

The literature on job displacements suggests that when a new Walmart opens with 300 workers,

A)between 75 percent and 133 percent of that number will be displaced elsewhere in the community.
B)between 45 percent and 65 percent of that number will be displaced elsewhere in the community.
C)between 25 percent and 35 percent of that number will be displaced elsewhere in the community.
D)between 5 percent and 15 percent of that number will be displaced elsewhere in the community.

Question 40

Walmart's "pull-factor" can be beneficial to a community by encouraging

A)labor union activists to move permanently into the area.
B)dissatisfied employees to apply for work at other local "Mom and Pop" retailers.
C)suppliers to offer their employees higher wages and more attractive fringe benefits.
D)other "big box" retailers to locate nearby.

Question 41

A consumer who pays extra to shop at an IGA grocery store and avoid Walmart exhibits a

A)compulsive behavior.
B)"revealed preference".
C)"pathologically irrational preference".
D)systematically inefficient decision-making ability.