BUS_COBACORE_Econ_MGT
Which of the following individuals would be most hurt by an unanticipated increase in inflation?
A retiree living on a fixed income
An organizational culture most likely to shape high ethical standards among its members is one that _
Balances the rights of multiple stakeholders
The terms negotiation and ________ are used interchangeably.
Bargaining
Which of the following is not a remedy for the bullwhip effect?
Base forecasts on demand coming from the immediate downstream customer
A government is most likely to reduce taxes on investments when
Capital spending is expected to be unusually low
Which of the following concepts compares the price of goods in a given year to a base year?
Consumer price index
Which of the following indicators is used by the federal government to measure inflation?
Consumer price index
Personal income is equal to
Disposable income plus personal tax payments
According to the traditional view of conflict, conflict is _
Harmful
Which of the following operations management concepts did not evolve from scientific management?
Interchangeable parts
Vertical integration is a good strategic option for a manufacturing company when
It needs one input material in large volumes
Which activity appears to be most frequently outsourced by large companies?
Manufacturing
Entry into monopolistic competition is
Relatively easy, with only a few obstacles
Which of the following is not a core topic of organizational behavior?
Resource allocation
Teams that are composed of people who score high on _ are more creative and innovative
Openness to experience
At The GAP, which function plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its various retail locations?
Operations management
The measurement of the benefit lost by using resources for a given purpose is
Opportunity cost
_ analysis is a technique used to identify quality problems based on their degree
Pareto
Economies and diseconomies of scale are important determinants of the
Pattern of costs in the long run
Operational efficiency is:
Performing operations tasks well
In what area does General Motors earn its highest return on capital?
Post-sales parts and service
A hospital is an example of which layout type?
Process
Employees' beliefs in the degree to which they influence their work environment, their competence, the meaningfulness of their job, and their perceived autonomy is termed as _
Pychological empowerment
If the price elasticity of demand for a normal good is estimated to be 2.5, a 5% reduction in its price causes
Quantity demanded to rise by 12.5%
X and Y are substitute products. If the price of product Y increases, the immediate impact on product X is that its
Quantity demanded will increase
Which one of the following is a characteristic of pure competition?
Standardized product
The concept of diseconomies of scale _
States that beyond a certain point the cost of each additional unit made increases
When discussing the capacity of a facility, we need what two types of information?
The amount of available capacity and the effectiveness of capacity use
Which of the following is not one of the four major causes of the bullwhip effect?
The business cycle
Environmental scanning would not provide information on:
The firm's internal inefficient distribution system
The demand curve for a product reflects which of the following?
The impact that price has on the amount of a product purchased
Information overload occurs when _
The information we have to work with exceeds our processing capacity
Which of the following characteristics would indicate that an item sold would have a relatively high price elasticity of demand?
The item has many similar substitutes
Which company is widely considered to be the leader of just-in-time production?
Toyota
Assume that real gross domestic product (GDP), measured in Year 1 dollars, rose from $3,000 billion in Year 1 to $4,500 billion in Year 10. Assume also that the price index rose from 100 to 200 during the same period. The GDP for Year 1 expressed in terms of Year 10 prices is
$6,000 billion
A company had a choice between Project X and Project Y. The net present value of Project X is $1,000,000, and the net present value of Project Y is $750,000. The company chose Project X. What is the opportunity cost of that decision?
$750,000
Tuscan Bank is required to reserve $20 out of every $100 deposited, and it has $5,000,000 in deposits. What is the current money multiplier?
5
What percentage of total non-farm jobs in the U.S. economy comes from service-producing industries?
80%
A lender and a borrower signed a contract for a $1,000 loan for 1 year. The lender asked the borrower to pay 3% interest. Inflation occurred and prices rose by 2% over the next year. The borrower repaid $1,030. What is the amount worth in real terms, after inflation?
$1,009.80
In which of the following situations would there be inelastic demand?
A 5% price increase results in a 3% decrease in the quantity demanded
A normal profit is
A cost of resources from an economic perspective
If a group of consumers decide to boycott a particular product, the expected result would be
A decrease in the demand for the product
Each of the following describes one of the functions of money except
A hedge against inflation
The effect of a boycott on a firm's demand curve can be depicted as
A leftward shift of the entire curve
Research finds that when nothing in particular is happening, called positivity offset, most individuals experience _
A mildly positive mood
A characteristic of a monopoly is that
A monopoly will produce when marginal revenue is equal to marginal cost
In an analysis of long-run costs of production, "long run" means
A period of time long enough for the firm to make all resource costs variable in nature
If the price elasticity of demand for a product is inelastic,
A price increase causes total revenue to increase
Which of the following results could be expected from an open market operation of the Federal Reserve?
A sale of securities would raise interest rates
Filtering is a barrier to effective communication. Filtering takes place when _
A sender purposely manipulates information so the receiver will see it more favorably
An improvement in technology that in turn leads to improved worker productivity would most likely result in
A shift to the right in the supply curve and a lowering of the price of the output
If the federal government regulates a product or service in a competitive market by setting a maximum price below the equilibrium price, what is the short-run effect?
A shortage
Given a legal price floor of $3.00, what will be the result given the supply and demand curves below?
A surplus of 20 units
A quality circle is
A team of volunteer production employees and their supervisors who meet regularly to solve quality problems
Which of the following is true of teams?
A team works over some time period to accomplish common goals related to some task- oriented purpose
Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is:
A tier three supplier
McClelland's theory of needs concentrates on which three needs?
Achievement, power, and affiliation
Reverse engineering is:
Acquiring a competitor's product and studying its design features
Which of the following definitions best describes a business cycle?
Activity that alternates periods of growth and decline in an economy's GDP
Who wrote The Wealth of Nations in 1776, describing division of labor?
Adam Smith
Which of the following is not primarily performed by the operation management function?
Advertising strategy
Ben is prone to experiencing emotions in a much stronger manner than most other people. Events that don't provoke any significant emotional response in the average person often send him into fits of happiness, anger, or depression. Ben has a high level of _
Affect intensity
Which of the following is the term used for the strength with which individuals experience emotion?
Affect intensity
Despite misperceptions, the majority of studies have shown virtually no relationship between
Age and job performance
The grapevine within an organization provides which benefit(s)?
All A, B, and C
In microeconomics, the distinguishing characteristic of the long run on the supply side is that
All inputs are variable
Percentage of orders shipped on schedule is a good measure of finished goods customer service if:
All orders and customers have similar value
A country recently experienced a drop in consumer purchases and a rise in business inventories of durable goods. Wages grew slowly and unemployment increased. Business investment in plant and equipment dropped sharply and profits fell. Both interest rates and stock prices fell. Which of the following statements best represents the country's current economy?
Amidst an economic recession
Which of the following may provide a leading indicator of a future increase in gross domestic product?
An increase in the average hours worked per week of production workers
The money supply in a nation's economy will decrease following
An increase in the reserve ratio
If a product's demand is relatively elastic and the price is lowered, the effect will be
An increase in total revenue
Fact pattern: Karen Parker wants to establish an environmental testing company that would specialize in evaluating the quality of water found in rivers and streams. However, Parker has discovered that she needs either certification or approval from five separate local and state governmental agencies before she can commence business. Also, the necessary equipment to begin costs several million dollars. Nevertheless, Parker believes that, if she is able to obtain capital resources, she can gain market share from the two major competitors. The market structure Karen Parker is attempting to enter is best described as
An oligopoly
What costs are considered in the basic EOQ model?
Annual ordering costs + annual holding costs
The subject of organizational culture has been most influenced by which behavioral science discipline?
Anthropology
Teams that consist of team members that score _ are more likely to perform poorly
Low on agreeableness
According to the attribution theory, if a behavior scores _, we tend to attribute it to external causes
Low on consistency
A country reduces its rate of monetary growth. Which of the following is the expected result for the country's economy?
Lower GDP growth
If a government were to use only fiscal policy to stimulate the economy from a recession, it would
Lower consumer taxes and increase government spending
To address the problem of a recession, the Federal Reserve Bank most likely would take which of the following actions?
Lower the discount rate it charges to banks for loans
An employer is a monopsonist with respect to hiring labor, but it sells its product in a competitive market. Compared with a firm that must hire from a competitive labor market, the monopsonist will pay a
Lower wage and hire fewer workers
What are the Institute for Supply Management's principles of ethical supply chain management conduct?
Loyalty to your organization, justice to those with whom you deal, and faith in your profession
Which product and service strategy is typically seen in repetitive operations?
Make-to-stock
Decisions regarding which of the following are not part of the production process structure?
Management policies
Operations management is responsible for orchestrating all the resources needed to produce the final product. This includes all of the following except
Managing cash flow
The finance function is responsible for:
Managing cash flow, current assets, and capital investments
In markets that are imperfectly competitive, such as monopoly and monopolistic competition, firms produce at an output at which
Marginal cost equals marginal revenue
The change in total product resulting from the use of one unit more of the variable factor is known as
Marginal product
Which of the following is not a fixed cost?
Materials
A major problem arising from the use of fiscal policy to help stimulate an economy is that there
May be an expansionary and, therefore, inflationary bias to such policies
In 1997, who performed a large benchmarking study for IBM?
Mercer Management Consultants
The competitive model of supply and demand predicts that a surplus can arise if there is a
Minimum price above the equilibrium price
Which of the following is not typically considered to be a core competency?
Mission
A key feature of scientific management is that workers are motivated only by
Money
A market with many independent firms, low barriers to entry, and product differentiation is best classified as
Monopolistic competition
Which of the following terms best describes feelings that tend to be less intense than emotions?
Moods
A corporation's net income as presented on its income statement is usually
More than its economic profits because opportunity costs are not considered in calculating net income
Which of the following is not a stereotype?
People of Asian descent have dark hair
According to the Myers-Briggs Type Indicator (MBTI) classification, people belonging to the "_" type are flexible and spontaneous.
Perceiving
Robbie and Brent are both coaches for a city youth baseball league which has recently experienced a five game losing streak. Robbie is concerned that the team is not practicing enough while Brent thinks that it is just a slump. The discrepancy within their thoughts is explained by
Perceptual issue
If the coefficient of elasticity is zero, then the consumer demand for the product is said to be
Perfectly inelastic
According to the expectancy theory, which of the following relationships indicates the degree to which the individual believes that a particular level of output will lead to the attainment of a desired outcome?
Performance-reward
The basic source of improvements in real wage rates and in the standard of living is
Productivity growth
Which type of process would be least likely to produce goods for inventory rather than for a specific customer request?
Project
Building a bridge over the Mississippi River for a new highway uses a
Project process
Which behavioral science discipline is most focused on understanding individual behavior?
Psychology
Which of the following strategies would the Federal Reserve most likely pursue under an expansionary policy?
Purchase federal securities and lower the discount rate
The Federal Reserve wishes to conduct expansionary monetary policy. Which of the following policy approaches will be most successful?
Purchase government securities and lower the discount rate
Which of the following is not included in the gross domestic product (GDP)?
Purchase of common stock
If the price elasticity of demand for a normal good is estimated to be 1.5, a 10% reduction in its price would cause
Quantity demanded to rise by 15%
A company has a policy of frequently cutting prices to increase sales. Product demand is significantly elastic. What impact would this have on the company's situation?
Quantity increases proportionally more than the price declines
The consensus of economic forecasts indicates that consumer prices are likely to increase because of increases in aggregate demand. Which of the following outcomes is most likely to occur as prices increase?
Quantity of output increases if there is capacity to produce
What are companies that have low customer contact and are capital intensive; yet provide a service, called?
Quasi-manufacturing organizations
The prime rate is the
Rate charged on business loans to borrowers with high credit ratings
What does the consumer price index measure?
Rate of inflation
Research has shown that there is a link between our emotions and our ability to be _
Rational
One of the measures economists and economic policy makers use to gauge a nation's economic growth is to calculate the change in the
Real per capita output
Contingency theories focus on the ________ that impact leadership success
Situational variables
Which of the following statements is true regarding the sources of moods and emotions?
Sleep quality affects mood
Which of the following terms indicates the tendency of individuals to spend less effort when working collectively?
Social loafing
Which of the following would not be a basic element into which a job would be split when using predetermined time data?
Sort
Research suggests that when members feel confident to _ without fear of punishment, _ can be beneficial and boost team performance
Speak up; conflict
Which of the following is not a form of non-price competition typical under monopolistic competition?
Special discounts
The Federal Reserve System's reserve ratio is the
Specified percentage of a commercial bank's deposit liabilities that must be deposited in the central bank or kept on hand
EM Co. is considering acquiring Chairy Co., which manufactures wooden rocking chairs. EM's accountant determined, at the projected output level, the following: Price: $250 Average variable cost: $125 Average total cost: $160 Marginal cost: $140 The accountant's report would include the following remark:
EM Co. should acquire Chairy Co.
Which one of the following is not a key assumption of perfect competition?
Each firm can price its product above the industry price
When long-run average cost is declining over a range of increasing output, the firm is experiencing
Economies of scale
The challenge in process layouts is to arrange resources to maximize _ and minimize
Efficiency, waste of movement
_ is an emotion that falls into the category of high positive affect
Elation
Operations Management is responsible for increasing the organization's efficiency, which means the company will be able to
Eliminate activities that do not add value
Kathryn expresses her anger against her supervisor for denying her a well-deserved promotion. Which of the following terms best describes the intense feelings that she directs at him?
Emotions
Emotional intelligence (EI) is critical to effective leadership because one of its core components is _
Empathy
An individual's involvement with, satisfaction with, and enthusiasm for the work he/she performs is known as _
Employee Engagement
Which of the following is an example of an intrinsic reward?
Employee recognition
The University of Michigan studies define a(n) ________ leader as one who takes a personal interest in the needs of his/her subordinates
Employee-oriented
To create a more ethical culture, management should do all of the following except
Encourage unbridled competition
In order for the Federal Reserve System to increase the money supply, the appropriate policy is to
Engage in open-market purchases of government securities
Which of the following is an effective means of countering social loafing?
Ensure that individual contributions to the group's outcome are identified
Any business firm that has the ability to control the price of the product it sells
Faces a downward-sloping demand curve
Decisions regarding which of the following are not part of the production process infrastructure?
Facilities
Which of the following is more like a product layout as compared to a process layout?
Facilities are more capital intensive
Price discrimination is accomplished most effectively in markets with which of the following characteristics?
Fairly distinct segments of customers
A good example of monopolistic competition is the
Fast food industry
Providing an adequate supply of money to accommodate the needs of U.S. business is the task of the
Federal Reserve System
In regards to job engagement, having a good manager they enjoy working for and _ were found to be the top causations
Feeling appreciated by one's supervisor
The theory of cognitive dissonance was proposed by _
Festinger
Demand for a product tends to be price inelastic if
Few good substitutes are available for the product
Every business is managed through what three major functions?
Finance, marketing, and operations management
Mr. Smith is hired as a consultant to a firm evaluating entry into a perfectly competitive industry. Mr. Smith determined that at the projected level of output the price would be $100, the average variable cost would be $50, average total cost would be $80, and marginal cost would be $70. Mr. Smith's report will include the following remarks:
Firms should enter the market
Highly-skilled hourly workers would be most needed by companies employing which of the following competitive priorities?
Flexibility
The major advantage of the virtual organization is its _
Flexibility
What was the first US company to receive the Deming Prize?
Florida Power & Light
Who created "scientific management?"
Frederick W. Taylor
Macroeconomic stability theory includes the concepts of full employment and price stability. Which of the following are usually considered unavoidable factors preventing the achievement of 100% employment?
Frictional and structural unemployment
__ conflict supports the goals of the group while _ conflict hinders group performance
Functional; dysfunctional
Which of the following concepts can best be used to understand oligopoly behavior?
Game theory model
Whereas _ focuses on differences among people from different countries, _ addresses differences among people within given countries
Globalization; Workforce diversity
A recent change in supply chain management has been the:
Green supply chain management requirement
Which one of the following components of gross domestic product (GDP) has the greatest fluctuation from year to year?
Gross domestic private investment
The level of aggregate demand will decline if the level of
Gross private domestic investment decreases
A concerted effort to avoid doing business with a particular supplier is known as a
Group boycott
As organizational behaviorists, we organize characteristics by overall traits describing the _ and _ of a person's personality
Growth; development
It was Marisol's first day at work. At first she was very nervous, but when she was introduced to her cubicle neighbor, Hanna, she was reassured by Hanna's soothing smile. Marisol thought that a person with such a beautiful smile could not be bad, and that she would enjoy having her in such close proximity. Which of the following concepts best describes this example?
Halo effect
Jennifer has already presented two excellent reports. The third report she has just presented is clearly not as good as the first two reports, yet she is given the same high grade as before. What shortcut has the teacher used in this case?
Halo effect
When markets are perfectly competitive, consumers
Have goods and services produced at the lowest cost in the long run
Which of the following statements is true regarding Maslow's hierarchy of needs theory?
Having a substantially satisfied need no longer motivates
Which of the following segments of the economy will be least affected by the business cycle?
Healthcare industry
A _ allows management to make the most efficient use of its employees' skills and even successfully improve them through repetition
High degree of work specialization
If you were using the Fiedler contingency model of leadership to establish a scenario in your company which gives managers maximum control, which of the following combinations of situational dimensions would you seek to achieve?
High task structure, good leader-member relations, and strong position power
During a recession, the goal of government fiscal policy is to raise equilibrium output. An appropriate governmental action in this situation is to
Increase government spending
An increase in the market supply of beef would result in a(n)
Increase in the quantity of beef demanded
Which of the following methods may the Federal Reserve use to reduce inflationary pressures?
Increase margin requirements
In any competitive market, an increase in both demand and supply can be expected to always
Increase market-clearing quantity
The most effective fiscal policy program to help reduce demand-pull inflation would be to
Increase taxes and decrease government spending
A period of rising inflation
Increases the price level, which is negatively related to the purchasing power of money
Which of the following changes would most effectively halt a period of inflation?
Increasing interest rates by a large amount
Which of the following actions is the acknowledged preventive measure for a period of deflation?
Increasing the money supply
Because of the existence of economies of scale, business firms may find that
Increasing the size of a factory will result in lower average costs
_ is the ability to identify a logical sequence in a problem and then solve the problem
Inductive reasoning
Information Technology does not assist the firm in:
Information creation
The Ohio State Studies narrowed the independent dimensions of leader behavior to two dimensions that substantially accounted for most of the leadership behavior described by employees: consideration and
Initiating structure
Suppose that last month the cost of inputs summed to $100,000, and the value of outputs summed to $800,000. For which of the following values this month would productivity increase?
Inputs = $100,000, outputs = $820,000
Suppose that on Wednesday the cost of inputs summed to $4000, and the value of outputs summed to $10,000. For which of the following values on Thursday will productivity stay the same?
Inputs = $2000, outputs = $5000
When does productivity increase?
Inputs decrease while outputs remain the same
A(n) _ organization is an organization that takes on a life of its own, apart from its founders or members and is valued for itself and not for the goods or services it produces
Institutionalized
Motivation can be defined by three key elements. ________ is one of these three key elements and it is the element most of us focus on when we talk about motivation
Intensity
Which type of operation is used to produce many different products with varying process requirements in lower volumes?
Intermittent
Employees of the organization who receive goods or services from others in the company are
Internal customers
What outsourcing functions does UPS provide for clients?
Inventories and deliveries
The value of money varies
Inversely with the general level of prices
The long-run average total cost (ATC) curve
Is ordinarily U-shaped
If a normal good competes with 30 similar goods and all 31 goods give the consumer equal satisfaction, the demand for the normal good
Is relatively elastic
If oil producers and retailers were to increase the price of gasoline for cars during the summer season by $.05 per gallon, these suppliers anticipate that the demand for gasoline
Is relatively inelastic
For a manager, it is worth understanding the grapevine in the organization because
It helps tap into employee anxieties
In addition to increasing the demand for lendable funds, government borrowing to finance large deficits has which of the following effects?
It puts upward pressure on interest rates
The ultimate source of an organization's culture is _
Its founders
Where is the Deming prize awarded?
Japan
Where was the just-in-time philosophy developed?
Japan
The degree to which a person identifies with his or her job, actively participates in it, and considers his or her performance as being important to self-worth is _
Job involvement
What refers to a positive feeling about a job, resulting from an evaluation of its characteristics?
Job satisfaction
Jackson Co. is considering a project that will use 2,000 square feet of storage space at one of its facilities to store used equipment. What will determine Jackson's opportunity cost?
The value of the next best use of the space
Emotional sharing is very prominent in the workplace and a way for many individuals to meet their social needs. Why is this?
The workplace is the primary source of social interaction for most people
Which of the following statements is not true regarding values?
There is no substantial variability in values across cultures
Which of the following is not a physical manifestation of being a good listener?
Touching the speaker
On average, managers spend most of their time doing which managerial activity?
Traditional management
Leaders who clarify role and task requirements to accomplish established goals exhibit a(n) _ style of leadership
Transactional
_ leaders inspire followers to transcend their self-interests for the good of the organization and can have an extraordinary effect on their followers
Transformational
All of the following are consequences of a relationship of trust between supervisors and employees, except that
Trust discourages taking risks
The creation of deposit money by U.S. commercial banks increases the
U.S. money supply
The conflict-handling intention of accommodating is _
Unassertive and cooperative
According to the Hofstede's framework, ________ indicates the degree to which people in a country prefer structured to unstructured situations
Uncertainty avoidance
The objective of quality at the source is not only to identify a quality problem, but also to
Uncover its root cause
The trough of a business cycle is generally characterized by
Unused productive capacity and an unwillingness to risk new investments
Costs that are proportional to the amount of units produced, such as materials and labor, are
Variable costs
The first military use of management science was solving complex problems of logistics control, weapons system design, and deployment of missiles during
WWII
In what company were the Hawthorne Studies conducted?
Western Electric
Which of the following is not an example of a performance norm?
When an employee needs to look busy
An oligopolist faces a "kinked" demand curve. This terminology indicates that
When an oligopolist lowers its price, the other firms in the oligopoly will match the price reduction, but if the oligopolist raises its price, the other firms will ignore the price change
Which of the following is not true with respect to strategic and tactical decisions?
Tactical decisions determine the direction for strategic decisions
A positive organizational culture emphasizes all of the following except which?
Tailoring positions to encourage work life balance
In a periodic review inventory system, how many units are ordered?
Target inventory level - on hand balance
Anya is a graphic designer in a firm specializing in making logos for their clients. Last week, she got client specifications on how to make a new logo. She was able to create a prototype, and having got it initially reviewed by her immediate supervisor, she made changes until the client was satisfied with her final product. Based on this description, it's safe to say that Anya's job is high in _ and _
Task identity; feedback
Individuals with a positive ________ identity but without a positive ________ identity can become fixed to their teams and unwilling to coordinate with other teams within the organization
Team; organizational
Which of the following is not considered one of the four broad categories of competitive priorities?
Technology
Under which of the following conditions is the supplier most able to influence or control buyers?
When the supplier does not face the threat of substitute products
Leadership is best defined as _
The ability to influence a group toward the achievement of a vision or set of goals
The emotional or feeling component of a person's attitude is called
The affective component
Marginal revenue is
The change in total revenue associated with producing and selling one more unit
Increased demand for Product A increases the demand for resources used to produce Product A. What is the best explanation for the increase in the demand for resources?
The theory of derived demand is working
Gross domestic product includes which of the following measures?
The total monetary value of all final goods and services produced within a nation in 1 year
All of the following are components of the formula used to calculate gross domestic product except
The value of a homemaker's work
One of the major disadvantages of oral communication is that _
Both A and B
Which of the following traits is most likely to aid someone in becoming a leader?
Narcissism
Carter Co. paid $1,000,000 for land 3 years ago. Carter estimates it can sell the land for $1,200,000, net of selling costs. If the land is not sold, Carter plans to develop the land at a cost of $1,500,000. Carter estimates net cash flow from the development in the first year of operations would be $500,000. What is Carter's opportunity cost of the development?
$1,200,000
Using the income approach, calculate the national income used to calculate GDP with the information provided below: Interest $8,000 Salaries and wages $50,000 Net foreign factor income $7,000 Partnership income $10,000 Rents $20,000 Indirect business taxes $1,000 Corporate profits $25,000 Proprietor income $4,000
$117,000
A small country that uses the U.S. dollar as its currency is measuring its GDP for the current year. Personal consumption expenditure was $69,000 last year, and it increased by 10% this year. Gross private domestic investment was $18,000, and it decreased by 5% this year. Government purchases was $19,000, and it increased by 20% this year. Net exports of $2,000 remained the same as last year. What is the current year's GDP based on the classic expenditure model?
$117,800.
The full-employment gross domestic product (GDP) is $1.3 trillion, and the actual gross domestic product is $1.2 trillion. The marginal propensity to consume (MPC) is 0.8. When inflation is ignored, what increase in government expenditures is necessary to produce full employment?
$20 billion.
What is the amount needed to close the recessionary gap if the economy's full-employment real gross domestic product (GDP) is $1.2 trillion and its equilibrium real GDP is $1.0 trillion?
$200 billion divided by the multiplier
From the following information, calculate economic profit: Total sales revenue: $600,000 Total cost of sales: $200,000 Selling expenses: $50,000 Gen. and Admin expenses : $25,000 Forgone interest: $20,000 Forgone entrepreneurial income: 15,000
$290,000
Fact pattern: The financial transactions for the country of Panglossia with values stated in billions of dollars are listed below. Gross domestic product (GDP) $4,000 Transfer payments $500 Corporate income taxes $50 Social Security contributions $200 Indirect business taxes $210 Personal taxes $250 Undistributed corporate profits $25 Depreciation $500 Net income earned abroad for the country $0 Panglossia's disposable income is _
$3,265
Fact pattern: The financial transactions for the country of Panglossia with values stated in billions of dollars are listed below. Gross domestic product (GDP) $4,000 Transfer payments $500 Corporate income taxes $50 Social Security contributions $200 Indirect business taxes $210 Personal taxes $250 Undistributed corporate profits $25 Depreciation $500 Net income earned abroad for the country $0 Panglossia's national income is _
$3,290
A United States-based faculty member goes on sabbatical and works in Finland for a government-run university teaching classes for its International MBA program. The faculty member returns to the U.S. with a paycheck for $50,000 and spends $38,000 of it on a German manufactured car from a dealership in Miami, Florida. Using the classic expenditure model, how much does the GDP increase in each country? Germany _, Finland United States _
$38,000 $50,000 $0
A bank with a reserve ratio of 20% and reserves of $1,000,000 can increase its total demand deposits by
$5,000,000
If Tonya used $10,000 from her savings account, which was paying 5% interest annually, to invest in a coffee shop, the opportunity cost of this investment annually would be
$500
Investment figures are for planned investment. Amounts are in billions. Personal Consumption Real GDP: $510, Expenditures: $492 Real GDP: $520, Expenditures: $500 Real GDP: $530, Expenditures: $508 Real GDP: $540, Expenditures: $516 Real GDP: $550, Expenditures: $524 Real GDP: $560, Expenditures: $532 Real GDP: $570, Expenditures: $540 Assuming that taxes and net exports are zero, government purchases of goods and services are equal to $12, and gross private domestic investment is equal to $10, the equilibrium real gross domestic product will be
$530
The controller of Gray, Inc., has decided to use ratio analysis to analyze business cycles for the past 2 years in an effort to identify seasonal patterns. Which of the following formulas should be used to compute percentage changes for account balances for Year 1 to Year 2?
(Current balance - Prior balance) ÷ Prior balance
A hospital is comparing last year's emergency rescue services expenditures to those from 10 years ago. Last year's expenditures were $100,500. Ten years ago, the expenditures were $72,800. The CPI for last year is 168.5, as compared to 10 years ago when it was 121.3. After adjusting for inflation, what percentage change occurred in expenditures for emergency rescue services?
0.6% decrease
Assuming a required reserve ratio of 10%, the value of the monetary multiplier will be
10
If inputs increase by 30% and outputs increase by 15%, what is the percentage change in productivity?
11.54% decrease
If inputs increase by 6% and outputs increase by 24%, what is the percentage productivity increase?
16.98%
When was the first mathematical model for inventory management developed?
1913
When were the Hawthorne Studies conducted?
1930s
According to David Galenson, individuals do their most creative work during their
40s, 50s, and 60s
Below are the recent monthly unemployment figures for an economy: Persons moving to a new city and seeking work 100,000 Persons out of work because their industry has just been rendered obsolete by technological change 12,000 Persons in all industries laid off due to general economic slowdown 120,000 Persons taking 2 months off from work to pursue education 100,000 Applying the Bureau of Labor Statistics' guidelines for calculating the official unemployment statistics, what is the "natural" level of unemployment for this economy?
212,000
In six-sigma the level of defects is reduced to approximately
3.4 parts per million
. The price elasticity of demand for a good is 2.0, and the quantity demanded is 5,000 units. The price increases by 10%. What is the new quantity demanded?
4,000
Generally speaking, the most effective teams have _ members
5-9
If the telecommunication company sold $10,000,000 of internet service using $50,000 of labor, $25,000 of leased bandwidth, $45,000 service fees, and $80,000 or replacement parts, what is the telecommunication multifactor productivity?
50
Raissa's Pizza parlor has an average monthly demand of 1200 pizzas. Statistically, each employee can produce 10 pizzas per hour. The parlor is open 20 days each month. How many employees must they need to meet the demand using a level aggregate plan?
6
Consider a workstation that can process 4000 units per hour. It takes 15 minutes to receive an order from the previous station. The container size is 20 units. The factory sets safety stock at 20% of demand during lead time. How many kanbans are needed for the workstation?
60
Groups of approximately ________ members tend to be more effective for taking action.
7
What is the rate of inflation from one year to the next if the consumer price index was 110 in one year and 118 in the next year?
7.3%
Bank is willing to lend a business $1 million at an annual real interest rate of 6%. What is the nominal rate Bank will charge the firm if the rate of inflation is anticipated to be 2%?
8%
_ is an individual's current capacity to perform the various tasks in a job
Ability
Which of the following is not a typical result of the bullwhip effect?
Absenteeism
All of the following are stages of the business cycle except
Acceleration
Aqua Co. manufactures and sells boats in San Francisco, California. Aqua Co. has hired a consultant to evaluate entry into the Fort Lauderdale, Florida, market. The consultant determined that at the projected level of output the price would be $90,000, the average variable cost would be $55,000, the average total cost would be $70,000, and the marginal cost would be $62,000. The consultant's recommendation would include the following remark:
Aqua Co. should enter the market
As compared to high self-monitors, low self-monitors _
Are less likely to emerge as leaders
A privately owned subchapter S corporation increases its inventory of paper towels held for sale by 35% this year. How will this be reflected in the GDP calculation?
As an increase in gross private domestic investment
At what point in the industry life cycle should a firm in a monopolistic competitive market consider acquiring other firms?
At no point in the monopolistic competition industry life cycle should the firm be looking to make an acquisition
Leon Festinger argued that _ follow(s) _
Attitude; behavior
Which of the following answer choices is the best definition of attitude?
Attitudes are evaluative statements of what one believes about something or someone
There is a strong link between employee _ and _
Attitudes; Personality
Which of the following conflict-handling intentions is unassertive and uncooperative?
Avoiding
Research on employee stock ownership plans indicates that they _
Increase employee satisfaction
Janice is spending the summer working as an intern writing copy for a local firm. Today Janice's senior editor sent back some of Janice's work covered in red ink corrections. Up until now, all of Janice's work had been corrected in green or blue ink. Janice is upset and worried that her senior editor doesn't like her. Which component of an attitude is not represented in the previous scenario?
Behavioral component
Managers in a developing country would see which of the following as ethical responsibility?
Both B and C
If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a:
Bottle neck
What technique is based on computing the quantity of goods a company needs to sell to just cover its costs?
Break-even analysis
Which of the Malcolm Baldrige Award criteria is allocated the
Business results
Which of the following would indicate that the economy is in an expansionary phase?
Businesses increase capital investment
How can United States managers be culturally sensitive?
By listening more
When compared with firms in perfectly competitive markets, monopolists ordinarily
Charge a higher price and produce a lower rate of output
_ refers to the degree to which decision making is concentrated at a single point in the organization.
Centralization
The belief that "violence is wrong" is an evaluative statement. Such an opinion constitutes the _ component of an attitude
Cognitive
Which of the following pricing policies results in establishment of a price to external customers higher than the competitive price for a given industry?
Collusive pricing
The primary purpose of the consumer price index (CPI) is to
Compare relative price changes over time
Goal-setting theory and self-efficacy theory do not _
Compete with one another
Tennis rackets and tennis balls are
Complementary goods
Which of the following conflict-handling intentions involves accepting a solution that provides incomplete satisfaction of both parties' concerns?
Compromising
The primary mechanism of monetary control of the Federal Reserve System is
Conducting open market operations
How can the gaps between what managers think employees feel and what employees really feel be reduced?
Conducting regular surveys
People scoring high on _ are valuable in teams because they're good at backing up fellow team members and at sensing when that support is truly needed
Conscientiousness
Marylyn is a very driven person who seeks to push ideas forward to keep people on their toes; however, she also has a problem with stepping on peoples toes and being overly critical of others. Marylyn probably has high _ and low _
Conscientiousness; emotional stability
The measurement of inflation that is a calculation based on a monthly pricing of items on a typical household shopping list is the
Consumer price index
Raymond is completing a study on discrimination in which he has noted that saleswomen who wear skirt suits make more sales than saleswomen who only wear pant suits. However, Raymond determined that his findings only pertained to those industries in which the purchasing decision maker is traditionally masculine. For example, the sales results were the same for all women selling to medical office managers, a female dominated field. Raymond used _ variables to more accurately explain his results.
Contingency
Mr. Johnson is hired as a consultant to a firm in a perfectly competitive industry. At the current output level, the price is $60, the average variable cost is $50, average total cost is $75, and the marginal cost is $70. In order to maximize profits in the short-run, Mr. Smith will recommend that the firm should
Continue to operate
In the short run, a purely competitive firm operating at a loss will
Continue to operate as long as price exceeds average variable costs
When using SPC if you plot the variable of interest against a timeline you are using
Control charts
Scatter diagrams are particularly useful in detecting the amount of _, or the degree of linear relationship, between two variables
Correlation
Each of the following is a pair of substitute resources except
Court bailiffs and judges
Price ceilings
Create prices below equilibrium prices
Research has indicated that in gender-diverse groups, strong politically correct norms increase group
Creativity
What are the three primary types of technology?
Product technology, process technology, and information technology
A bureaucracy is characterized by all of the following except ________.
Decentralized decision making
For a given level of tax collections, prices, and interest rates, a decrease in governmental purchases will result in a(n)
Decrease in aggregate demand
Price tends to fall in competitive markets when there is a(n)
Decrease in demand for the product
In relation to the laws of supply and demand, an increase in supply will
Decrease the equilibrium price and increase the equilibrium quantity exchanged
Alberto is working with a group of fifteen people to coordinate the merger of two corporations. Everyone in the group is highly qualified, offers relevant information, and has high norms. Still, the group seems to be slow at outlining a definitive plan for the merger. With the information provided, what would be the fastest and best way for Alberto to increase cohesiveness and productivity?
Decrease the size of the group
An increasing federal deficit implies which of the following conditions?
Decreased tax revenues and increased entitlement payments
10. Differences in characteristics such as personality, values, and beliefs form part of _
Deep-level diversity
Which of the following economic terms describes a general decline in prices for goods and services and in the level of interest rates?
Deflation
Which of the following is not a positive attribute of Multiple Suppliers?
Deliveries can be schedule more easily
If the average household income increases and there is relatively little change in the price of a normal good, then the
Demand curve will shift to the right.
If the price of apples declines and total revenue received by the firm increases, the
Demand for apples is elastic
A city ordinance that freezes rent prices may cause
Demand for rental space to exceed supply
The phrases "too many dollars chasing too few goods" and "supply shock" are associated with, respectively,
Demand-pull inflation and cost-push inflation
Under the income approach, gross domestic product (GDP) is measured as
Depreciation charges and indirect business taxes + Wages + Rents + Interest + Profits - Net American income earned abroad
How does inflation distort reported income?
Depreciation is not reflective of current fixed-asset replacement costs
Which of the following is the major drawback of job sharing from management'svperspective?
Difficulty in finding compatible partners
The Federal Reserve Board most directly influences a corporation's decision whether or not to issue debt or equity financing when it revises the
Discount rate at which the Federal Reserve Bank lends money to member banks
With reference to the attribution theory, which of the following terms indicates the extent to which an individual displays different behaviors in different situations?
Distinctiveness
Which of the following statements is true regarding conflict?
Diversity of goals among groups is a major source of conflict
JIT considers waste anything that
Does not add value
_ is a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff
Downsizing
The demand curve for a normal good is
Downward sloping because of the income and substitution effects of price changes
Variations between business cycles are most likely attributable to which of the following factors?
Duration and intensity
The most innovative companies are often characterized by all of the following except
Entrenched cultures
Fact pattern: Karen Parker wants to establish an environmental testing company that would specialize in evaluating the quality of water found in rivers and streams. However, Parker has discovered that she needs either certification or approval from five separate local and state governmental agencies before she can commence business. Also, the necessary equipment to begin costs several million dollars. Nevertheless, Parker believes that, if she is able to obtain capital resources, she can gain market share from the two major competitors. The large capital outlay necessary for the equipment is an example of a(n)
Entry barrier
Role ________ indicates the way others believe you should act in a given context
Expectation
Warranty claims, customer complaints, and costs of litigation are examples of _ costs
External failure
Your trainees are given a case study concerning a local manufacturing firm called Acme Products. In assessing Acme's organizational structure, your trainees notice that all of the company's decisions are made by top management, with little or no input from lower-level personnel. The trainees most likely identify Acme as a(n) ________ organization.
Highly centralized
The selection process helps sustain the organization's culture by _
Hiring candidates who fit well within the organization
David is of the opinion that people who drive SUVs are dangerous drivers. He often thinks
His expectations
A _ hows the frequency distribution of observed values of a variable
Histogram
Which is the best manner in which to deal with racial and ethnic diversity in the workplace?
Hold an orientation in which team members can discuss their differences
What movement started with the publication of the results of the Hawthorne studies?
Human relations
During which of the following periods will prices generally increase the fastest?
Hyperinflation
A utility firm has enjoyed an oligopolistic market due to regulations. Starting next year, these regulations will be repealed. One should expect I. New firms in the market II. Consolidation III. Divestiture
I and II only
The monopoly firm has a patent that is about to expire. A new start-up firm has entered the market with a new method and has applied for patent protection. Which of the strategies below make the most economic sense for the monopoly firm? I. Acquire the start-up firm II. Continue production III. Divestiture
I and II only
The U.S. Bureau of Labor Statistics samples American households each month and publishes an official unemployment rate based on the following formula: Which of the following persons are excluded from the denominator of this calculation? I. A homemaker with a part-time job outside the home II. A landscaper in the underground economy III. A laid-off database administrator not actively seeking other employment IV. A 15-year-old, actively seeking other employment, who was laid off by an ice cream stand owner
II, III, and IV
Demand-pull inflation occurs when
Incomes rise suddenly
A firm employs 100 workers and has 2 divisions, each in perfectly competitive markets. Division A produces tape measures and Division B produces saws. How should the firm allocate its workers to maximize efficiency?
III. Allocate workers so the marginal product of labor is the same in both divisions
A natural monopoly is
Identified with a one-firm industry with significant economies of scale and in which unit costs are minimized
The first step in making a capacity planning decision is _
Identify capacity requirements
Which one of the following statements about supply and demand is true?
If demand increases and supply decreases, equilibrium price will increase
Organizations following a(n) ________ strategy try to both minimize risk and maximize opportunity for profit, moving into new products or new markets only after innovators have proven their viability
Imitation
The argument in favor of minimum wage laws is that they
Improve the economic status of some workers
JIT can be traced back to the early 1900's but no one can argue that the philosophy gained worldwide prominence
In the 1970s
All of the following are true about perfect competition except that
In the long run, an increase in profit will have no effect on the number of firms in the market.
Disposable income is equal to
Income after taxes have been removed
Thad, Jamarcus, and Willy have been working for Davidson International each for three years. While the trio started together as analysts and are all still on the same team, Jamarcus has recently been made a team lead while Willy and Thad are still in their respective positions although Willy did receive a small raise after his last performance evaluation. Of the five majorjob attitudes, Jamarcus probably has the highest level of ________, while Willy probably has the highest level of ________.
Job satisfaction; organizational commitment
Which famous economist once suggested that, "The production problem has been solved."?
John Kenneth Galbraith
The Japanese term for continuous improvement is
Kaizen
Leveraging core competence is about sharing:
Knowledge
JIT uses a pull system where communication starts with either the customer or with the _ work station in the production line
Last
Which of the following is an assumption of the basic EOQ model?
Lead time is known and constant
A government price support program will
Lead to surpluses
The Malcolm Baldrige Award criteria category that includes commitment by top management is
Leadership
The broad view of JIT is now often termed
Lean production
Your friend Leslyn has been driving a Mustang for the past few years and is very vocal about how much she likes her car. Unfortunately, she was recently in an accident and has now purchased a brand new Challenger. Now she talks about how much she likes the Challenger and has started to criticize Mustangs! Which statement would best describe what you should say to Leslyn the next time she talks about cars?
Leslyn, I am sorry about your car Mustang. It was a great car but your Challenger is great too!
A higher level of vertical integration implies:
Less outsourcing and more insourcing
Research suggests which of the following relationships exists between the weather and mood?
Limited or little effect
What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles?
Line processes
What is typically used to quantitatively compare the effectiveness of layouts?
Load-distance model
An example of an operation that does not add value is
Moving components to a warehouse for storage until the factory needs them
The distinguishing characteristic of oligopolistic markets is
Mutual interdependence of firm pricing and output decisions
On average, managers spend the least amount of time doing which managerial activity?
Networking
Which of the following is true regarding the relative predictability of the cycle of new product introductions?
New car models and new fashion are predictable, but new skin care products are not
Each of the following is a limitation of GDP's usefulness as a measure of a nation's prosperity except
No practical means are available to compare real GDP from different time periods
Which of the following is an assumption in a perfectly competitive financial market?
No single trader or traders can have a significant impact on market prices
During an interview with one team member, you learn that several members of the team have had conflicts regarding the content of a task to which the team was recently assigned. Are these conflicts likely to be reducing the group's productivity?
No, because task-related conflicts usually benefit the performance of a team.
The velocity of money is generally measured as a ratio of the
Nominal gross domestic product to the money supply
The amounts paid to laborers are
Nominal wages
Which of the following statements regarding leadership is true?
Nonsanctioned leadership is as important as formal influence
If both the supply and the demand for a good increase, the market price will
Not be predictable with only these facts
Mr. Smith is hired as a consultant to a firm in a perfectly competitive industry. At the current output level the price is $20, the average variable cost is $15, average total cost is $22, and marginal cost is $20. In order to maximize profits in the short-run, Mr. Smith will recommend that the firm should
Not change output
The kinked demand curve is associated with the analysis of
Oligopoly
Which type of market structure is most apt to demonstrate "price leadership" by a major firm followed by other firms in the industry?
Oligopoly
Economic markets that are characterized by monopolistic competition have all of the following characteristics except
One seller of the product
Which of the following instruments of monetary policy is the most important means by which the money supply is controlled?
Open market operations
Holly is a highly motivated professional who likes to take on new tasks and makes certain that everything she does is done to perfection. In which two of the Big Five personality traits would Holly most likely score high?
Openness to experience and emotional stability
_ influences employees' behavior so strongly that organizations have started employing specific employees to preserve the status quo of the company
Organizational culture
Which of the following statements is true regarding perception?
Our perception of reality can be different from the objective reality
What are the two primary objectives of aggregate planning?
Output rate and workforce size
What term describes the process of obtaining goods or services from an outside provider?
Outsourcing
Which of the following options describes the phases of business cycle, in order of occurrence?
Peak, recession, trough, recovery
Which of the following statements is true regarding the degree to which people experience emotions across cultures?
People in China report experiencing fewer positive and negative emotions as compared to people in other cultures
In the context of Fiedler's model, the situational dimension termed _ relates to the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases
Position power
Which of the following indicates that the economy is in a recessionary phase?
Potential national income exceeds actual national income
Job candidates who prefer _ are likely to seek out and take employment in mechanistic structures, and those who want _ are more likely to end up in an organic structure
Predictability; autonomy
One issue that does seem to differ between men and women, especially when the employee has preschool-age children, is
Preference for work schedules
A supply curve illustrates the relationship between
Price and quantity supplied
According to several studies, what are the three most important criteria for selecting suppliers?
Price, quality, on-time delivery
Product demand increases and product supply decreases. Which of the following statements is correct regarding resulting market changes? Price: ? Quantity: ?
Price: Increases, Qty: Uncertain
All of the following actions are valid tools that the Federal Reserve Bank uses to control the supply of money except
Printing money when the level of M1 appears low
According to JIT, by eliminating inventory we can clearly identify _ and work on eliminating them.
Problems
A university is an example of which layout type?
Process
Which of the following is not a characteristic of organizational culture?
Process orientation
Computer-aided manufacturing is an example of what?
Process technology
Compared with firms in a perfectly competitive market, a monopolist tends to
Produce substantially less but charge a higher price
The Malcolm Baldrige Award criteria include categories for all of the following except
Product design
Which of the following is correct sequence for relating product design, process selection, and arrangement of equipment in the factory?
Product design determines process selection which determines arrangement of equipment
One disadvantage of using undertime is
Product labor cost increases
Evaluating a product idea to determine its likelihood of success is
Product screening
Diana has noticed that many of her coworkers at Bubble, Inc., have been laid off over the past year due to low profits. Also, prices were lowered recently due to economic conditions. Even though Diana is worried about her future at Bubble, she has noticed that employment has risen over the past month and that prices are slowly increasing. Because other companies have had the same experience, what phase of the business cycle is the economy currently in?
Recovery
A business cycle is a record of the
Recurrent fluctuations that occur in time series data for key macro variables such as real GDP
An economy is at the peak of the business cycle. Which of the following policy packages is the most effective way to dampen the economy and prevent inflation?
Reduce government spending, increase taxes, reduce money supply, and increase interest rates
According to fiscal policy principles, a tax increase will
Reduce spending and reduce aggregate demand
Which of the following Federal Reserve policies would increase the money supply?
Reduce the discount rate
At its core, reinforcement theory contends that _ condition(s) _
Reinforcement; behavior
The strength of the relationship between customer requirements and product characteristics is shown in the _ matrix
Relationship
If a product has a price elasticity of demand of 2.0, the demand is said to be
Relatively elastic
When a 5% fall in the price of athletic shoes causes the quantity demanded to increase by 10%, the demand for athletic shoes is said to be
Relatively elastic
Monopolistic competition is characterized by a
Relatively large group of sellers who produce differentiated products
9) Which of the following is not an action characteristic of an organization in flux?
Replacing temporary workers with permanent ones
The manner in which cartels set and maintain price above the competitive market price is to
Require cartel members to restrict output
The Waymand family typically ate hamburger as a staple in their diet. In the last few years, the family's income has doubled, and they have now replaced hamburger with steak as a staple in their diet. This is an example in which the demand for hamburger
Responds as an inferior good
According to the two-factor theory, _ is a motivating factor.
Responsibility
Falser Co. increases all of its input factors by 100%, resulting in increased output of 90%. Which of the following statements identifies the effect of this change?
Returns to scale decrease
When designing the Taurus model, what did Ford Motor Company do with regard to BMW and Toyota?
Reverse engineering
Jill is an excellent technical writer. She has never missed a deadline and all her projects are of superior quality. She now wants to telecommute two days a week, so that she can spend more time with her family. She feels that she has proven her reliability. However, her boss is unable to comply with her request and gives her a substantial raise instead. Jill's disappointment demonstrates a breakdown in the _ relationship.
Rewards-personal goals
Zach is devout and very active in his church. He is also a very dedicated employee. His manager offers him a promotion but the new role will require him to work Sundays. Zach would like the promotion, but realizes that it would force him to miss some church activities. In such a situation, Zach is most likely to experience
Role conflict
According to JIT, workers should perform
Routine preventive maintenance activities
If we consider Maslow's hierarchy of needs in the context of Japan, Greece, and Mexico, where uncertainty-avoidance characteristics are strong, then _ needs would be on top of the hierarchy
Security
The "Big Five" personality traits include all but which of the following?
Self-confidence
The main difference between the ideas of self-efficacy and self-esteem is _
Self-efficacy refers specifically to tasks
In break-even analysis, in order to make a profit the company must
Sell above the break-even point
According to the Myers-Briggs Type Indicator (MBTI) classification, people belonging to the "_" type are practical and prefer routine and order
Sensing
Which of the following is
Services
A decrease in the price of a complementary good will
Shift the demand curve of the other commodity to the right
If the Federal Reserve raises the discount rate, which of the following effects is likely to occur?
Short-term interest rates will likely increase
Individuals high in self-monitoring _
Show considerable adaptability in adjusting their behavior to external situational factors
An industry that is oligopolistic would be best characterized by
Significant barriers to entry
Local electric utilities are considered to be natural monopolies because, for these firms,
Significant economies of scale are present
Economic growth can be depicted as all of the following except:
Simultaneous inward shifts in both the aggregate supply and aggregate demand curves
Nunya is a computer software company that employs highly intelligent, but somewhat unusual people. Every Friday, free lollipops, toys, or other treats are given out to encourage employees to remember how creative they were when they were children. All the new members of the organization are told about the founders who were three young people who "got lucky" and sold a video game that they invented. The employees are allowed to dress informally and can set their own working hours. Informing employees about the founders is an example of which technique for transmitting culture?
Stories
Which of the following is not one of the characteristics of a spiritual organization?
Strong religious foundation
Which of the following types of unemployment typically results from technological advances?
Structural
In a capitalistic society, it is not considered possible to have 100% employment of the labor force. Therefore, full employment is defined as something less than 100% employment because of the existence of
Structural and frictional unemployment
Which of the following categories best describes auto workers whose jobs have been replaced by computer-driven robots and are actively seeking employment in new industries?
Structural unemployment
The rate of unemployment caused by changes in the composition of employment opportunities over time is referred to as the
Structural unemployment rate
Unemployment that is caused by a mismatch between the composition of the labor force (in terms of skills, occupation, industries, or geographic location) and the makeup of the demand for labor is called
Structural unemployment.
Participative management is a method of management where _
Subordinates share a significant degree of decision-making power with their immediate superiors
The definition of economic cost is
The sum of all explicit and implicit costs of the business firm
Which one of the following scenarios related to Music For You, Inc., who manufactures headphones, is not considered an illegal pricing practice?
The company allows customers who spend over a hundred dollars to purchase another set of headphones for half the price. The price for other customers who don't spend over a hundred dollars remains the same
Derived demand can best be described as
The demand for an input generated by the demand for the final product
Which of the following is least likely to be a consideration in facility location?
The design of the production process
Which of the following statements is correct regarding an economy at the peak of the business cycle?
The economy will be at the natural rate of unemployment
Which of the following statements is correct if there is an increase in the resources available within an economy?
The economy will be capable of producing more goods and services
An increase in the federal debt may create inflationary pressures for which of the following reasons?
The economy's money supply may increase
The elasticity of resource demand tends to be high when
The elasticity of product demand is high
Service design differs from product design by including
The esthetic and psychological benefits of the product
All of the following are characteristics of monopolistic competition except that
The firms sell a homogeneous product
If a rent control law in a competitive housing market establishes a maximum or ceiling rent that is above the market or equilibrium rent,
The law has no effect on the rental market
Which of the following conditions is the primary cause of fluctuations in business activity resulting in the alternating rise and fall of economic growth?
The level of total spending
Which of the following statements is correct regarding the variety and price of products produced under monopolistic competition as compared to production under perfect competition?
The monopolistically competitive industry produces a greater variety of products at a higher cost per unit
In JIT a Kanban card is used to signal
The need for more parts
According to the financial calculations of the make-or-buy decision, if we need fewer units than the indifference point, then which option should we definitely choose?
The option with the higher variable costs
Online retailing, or B2C, has shifted:
The power from the suppliers to the consumers
Which one of the following changes will cause the demand curve for gasoline to shift to the left?
The price of cars increases
Which of the following is correct regarding the consumer price index (CPI) for measuring the estimated decrease in a company's buying power?
The products a company buys should differ from what a consumer buys
The discount rate of the Federal Reserve System is
The rate that the central bank charges for loans granted to commercial banks
Loud people are more likely to be noticed in a group than quiet ones. So, too, are extremely attractive or unattractive individuals. Which of the following statements best explains the reason behind this fact?
The relationship of a target to its background influences our perception of the target
For the current month using JIT
The same amount of each product is produced in the same order each day
Which of the following statements is true regarding oral communication?
The sender can quickly obtain feedback from the receiver
Because of economies of scale, as output from production expands,
The short-run average cost of production decreases
Which of the following is a reason capacity and location decisions are usually made simultaneously?
The size of a new facility may affect its location
Evidence suggests that people tend to default to cooperative strategies in interpersonal interactions unless there is a clear signal that
They are faced with a competitive person
Why are agreeable people usually less successful in their careers?
They don't negotiate well
What are the two key components of the operations strategy of Federal Express?
They own their own fleet of airplanes, and they use a sophisticated bar code technology
Which of the following statements is true about people with positive core self-evaluations?
They set ambitious goals
The key to a successful bonus plan is that the reward needs to be _
Tied to a recent performance
The important thing in Quality Function Deployment competitive evaluation is
To identify customer requirements that should be pursued and how we fare relative to our competitors
If the Federal Reserve Banks sell $20 million in government securities to commercial banks and the required reserve ratio is 25%, the effect will be
To reduce the potential money supply by $80 million
In national income terms, aggregate demand is
Total expenditure on consumer goods and investment, including government and foreign expenditure, during a given period
Suppose that a stairway manufacturer's price elasticity of demand was relatively inelastic. If this manufacturer decided to increase the price of its stairways, what should have been the result?
Total revenues increased
With JIT there are two types of Kanban cards, production Kanban and _ Kanban.
Withdrawal
Which of the following statements is true about the difference between men and women when it comes to emotional reactions?
Women tend to "hold onto" emotions longer than men
_, the most widely used intelligence test in hiring decisions, takes only 12 minutes to complete
Wonderlic Cognitive Ability Test
The two most common forms of representative participation are _ and board representatives
Work councils
Highly conscientious individuals may tend to do all but which of the following?
Work to create new and more effective methods
What is the Hawthorne effect?
Workers responding to the attention they are given
Your fellow employees have a terrible work situation. They work in an old, run-down building with an antiquated heating system. The work itself is tedious and the supervisor is rarely available and only shows up to give reprimands for production shortfalls. Nobody has received a promotion in two years. The work is boring, repetitious, and unrewarding. You are trying to improve this situation with the help of Herzberg's two-factor theory. You decide that your first job should be to improve the hygiene factors. Which of the following would you consider a hygiene factor?
Working conditions
11. Which of the following is not a consequence of discrimination for employers?
Workplace diversity
All of the following are high in channel richness except _
Writing
