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| Section | Objectives |
|---|---|
| Topic 1: Managerial Economic Decision-Making | - Cost-benefit analysis in business contexts - Risk and uncertainty in global markets |
| Topic 2: Global Economics | - International trade and comparative advantage - Exchange rates and currency systems - Global economic institutions and trade policy |
| Topic 3: Foundations of Economics | - Market systems and economic models - Scarcity, opportunity cost, and economic reasoning |
| Topic 4: Macroeconomic Environment | - Fiscal and monetary policy - GDP, inflation, and unemployment |
| Topic 5: Microeconomics for Managers | - Elasticity and pricing decisions - Market structures and competition - Supply and demand analysis |
1. What is true about tariffs?
A) They increase consumer surplus
B) They eliminate deadweight loss
C) They allow the government to raise revenue
D) They lower domestic prices below world prices
2. What does the Federal Reserve do to expand aggregate demand? (Choose TWO.)
A) Reduce the quantity of reserves
B) Lower the interest rate
C) Decrease the money supply
D) Increase the money supply
E) Raise mortgage rates
F) Increase the foreign exchange rate
3. In order to increase the money supply, what does the Federal Reserve do?
A) Raises the federal funds rate
B) Buys government bonds from the public
C) Sells government bonds to the public
D) Increases reserve requirements
4. What does the term resource mobility describe?
A) An economic condition in which a nation exports more than it imports
B) The idea that market forces should determine how much to trade with little or no government intervention
C) The idea that governments should actively defend domestic industries from imports and vigorously promote the export of resources
D) The assumption that a resource removed from one industry can be moved to another
5. What is one benefit of small-scale entries into foreign markets?
A) They focus on learning by doing while limiting the downside risk.
B) They give complete equity and operational control.
C) They present easy opportunities to build market share.
D) They demonstrate a strategic commitment to certain markets.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B,D | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: A |
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