1) Lucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a __________.
A. saver who supplies money to the financial system
B. borrower who supplies money to the financial system
C. borrower who demands money from the financial system
D. saver who demands money from the financial system
2) If a price ceiling is a binding constraint on the market, __________.
A. there is excess supply
B. buyers cannot buy all they want to buy at the price ceiling
C. sellers cannot sell all they want to sell at the price ceiling
D. the equilibrium price must be below the price ceiling
3) A logical starting point from which the study of international trade begins is __________.
A. the recognition that government intervention in markets sometimes enhances the economic welfare of the society
B. the principle of comparative advantage
C. the principle of absolute advantage
D. the recognition that not all markets are competitive
4) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A. saver who supplies money to the financial system
B. borrower who supplies money to the financial system
C. borrower who demands money from the financial system
D. saver who demands money from the financial system
5) What you give up to obtain an item is called your __________.
A. explicit cost
B. direct cost
C. true cost
D. opportunity cost
6) A production possibilities frontier will be a straight line if __________.
A. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
B. the economy is engaged in trade with at least one other economy
C. the economy is producing efficiently
D. increasing the production of one good by x units entails no opportunity cost in terms of the other good
7) One characteristic of an oligopoly market structure is:
A. firms in the industry have some degree of market power.
B. the actions of one seller have no impact on the profitability of other sellers.
C. products typically sell at a price that reflects their marginal cost of production.
D. firms in the industry are typically characterized by very diverse product lines.
8) The open-economy macroeconomic model includes __________.
A. only the market for foreign-currency exchange
B. neither the market for loanable funds or the market for foreign-currency exchange
C. both the market for loanable funds and the market for foreign-currency exchange
D. only the market for loanable funds
9) The open-economy macroeconomic model examines the determination of __________.
A. unemployment and the exchange rate
B. the trade balance and the exchange rate
C. the output growth rate and the inflation rate
D. the output growth rate and the real interest rate
10) The part of the balance of payments account that records the amount of foreign currency the government buys or sells is the:
A. financial and capital account.
B. balance of trade.
C. government financial account.
D. current account.
11) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.
A. the monetary policy reaction lag
B. the sacrifice ratio dilemma
C. the time inconsistency of policy
D. inflation targeting
12) The political business cycle refers to __________.
A. the potential for a central bank to increase the money supply and therefore real GDP to help the incumbent get re-elected
B. the fact that about every four years some politician advocates greater government control of the Fed
C. the part of the business cycle caused by the reluctance of politicians to smooth the business cycle
D. changes in output created by the monetary rule the Fed must follow
13) The Federal Open Market Committee __________.
A. is required to increase the money supply by a given growth rate each year
B. operates with almost complete discretion over monetary policy
C. is required to keep the interest rate within a range set by Congress
D. is required by its charter to change the money supply using a complex formula that concerns the tradeoff between inflation and unemployment
14) When a company establishes technology leadership by pioneering unique products or services that command premium prices, it has benefited from a:
A. High-price strategy
B. High-cost strategy
C. Low-cost strategy
D. Differentiation strategy
E. Diversification strategy
15) An invisible barrier that makes it difficult for certain groups, such as minorities and women, to move beyond a certain level in the organizational hierarchy is referred to as the:
A. Glass ceiling
B. Black box theory
C. Job enrichment theory
D. Glass floor
E. Job enlargement concept
16) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:
A. Interpersonal/communication skills
B. Technical skills
C. Diagnostic skills
D. Conceptual
E. Professional skills
17) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.
A. an approach with high face validity
B. an approach with low reliability
C. an informal means of screening candidates
D. a formal means of screening candidates
E. an approach with high reliability
18) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
A. Entrepreneurs are their own bosses and completely independent
B. Anyone can start a business
C. Money should not be considered a start-up ingredient
D. All entrepreneurs need venture capital in order to get started
E. Successful entrepreneurs take very careful, calculated risks
19) Sebastian Stabilio just joined a team of people from throughout his organization whose primary task is to recommend valuable uses for the scrap generated in the manufacturing process. The team meets twice per week; otherwise members work within the usual organizational structure. The team, not permanent, which Sebastian has joined, would be considered a:
A. Working group
B. Work team
C. Project group
D. Parallel team
E. Project team
20) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?
A. integrity evaluations
B. intelligence tests
C. work sampling
D. behavioral assessment
E. aptitude tests
21) As related to managing of human resources, diversity refers to:
A. Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)
B. Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)
C. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)
D. Differences in retention strategies (such as training, hiring, incentives, etc)
E. Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)
22) The best way for an employer to find out if a potential employee can do a job is by __________.
A. using a written test
B. using the interview process
C. having them spend a day in the office
D. using a performance simulation test
E. administering an IQ test
23) Building a dynamic organization is another way of describing which function of management?
A. Organizing
B. Planning
C. Leading
D. Staffing
E. Controlling
24) Which of the following statements does NOT support Total Quality Management?
A. Strive for long-term improvement rather than short-term profit
B. Break down barriers among departments
C. Use numerical quotas
D. Creating silos between departments
E. Build long-term relationships instead of awarding business on price tag alone
25) A manager's ability to stimulate people to be high performers is referred to as:
A. Planning
B. Organizing
C. Controlling
D. Supervising
E. Leading
26) A manager's ability to stimulate people to be high performers is referred to as:
A. Planning
B. Organizing
C. Controlling
D. Staffing
E. Leading