2B - Market Influences on Business (1)
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? a. Quantity increases proportionally more than the price declines. b. Quantity increases proportionally less than the price declines. c. Price increases proportionally more than the quantity declines. d. Price increases proportionally less than the quantity declines.
a. Quantity increases proportionally more than the price declines. (Reducing price increases total revenue because quantity sold increases proportionally more than the price decreases.)
Which of the following characteristics would indicate that an item sold would have a high price elasticity of demand? a. The item has many similar substitutes. b. The cost of the item is low compared to the total budget of the purchasers. c. The item is considered a necessity. d. Changes in the price of the item are regulated by governmental agency.
a. The item has many similar substitutes.
Which statement best describes the concept of diminishing marginal utility? a. The more candy bars that a person eats, the less satisfaction derived from eating an additional candy bar. b. As the price of a candy bar increases, the purchase and consumption of candy bars will decrease. c. As income increases relative to the price of a candy bar, the purchase and consumption of candy bars will increase. d. The consumer will continue to purchase candy bars until the price of a substitute such as ice cream decreases.
a. The more candy bars that a person eats, the less satisfaction derived from eating an additional candy bar.
Which of the following formulas should be used to calculate the economic rate of return on common stock? a. (Dividends + Change in price) ÷ Beginning price b. (Net income - Preferred dividend) ÷ Common shares outstanding c. Market price per share ÷ Earnings per share d. Dividends per share ÷ Market price per share
a. (Dividends + Change in price) ÷ Beginning price
Which of the following is the most likely result of imposing tariffs to increase domestic employment? a. A long-run reallocation of workers from export industries to protected domestic industries b. A short-run increase in domestic employment in import industries from export industries c. A decrease in the tariff rates of foreign nations d. A decrease in consumer prices in the domestic market
a. A long-run reallocation of workers from export industries to protected domestic industries
Information regarding four aluminum manufacturers is as follows: A | B | C | D Average production cost 60 | 54 | 53 | 52 Mill price to domestic customers 56 | 49 | 54 | 49 Mill price to foreign customers 59 | 57 | 55 | 55 Spot aluminum price 56 | 56 | 56 | 56 According to international law, which of the following aluminum producers is dumping? a. Alpha b. Brighton c. Cobalt d. Driftwood
a. Alpha (Although none of the entities listed have an export price less than a domestic price, Alpha is the only entity that has set an export price below the average production cost.)
To address the problem of a recession, the Federal Reserve Bank most likely would take which of the following actions? a. Lower the discount rate it charges to banks for loans. b. Sell U.S. government bonds in open-market transactions. c. Increase the federal funds rate charged by banks when they borrow from one another. d. Increase the level of funds a bank is legally required to hold in reserve.
a. Lower the discount rate it charges to banks for loans.
How are the majority of new cryptocurrencies introduced to the market? a. Mining b. Issuance by a central bank or government c. Issuance by individual issuers similar to stocks or bonds d. Lottery
a. Mining
Which of the following is not a type of profit? a. Nominal profit b. Accounting profit c. Economic profit d. Normal profit
a. Nominal profit
Which of the following strategies would the Federal Reserve most likely pursue under an expansionary policy? a. Purchase federal securities and lower the discount rate b. Reduce the reserve requirement while raising the discount rate c. Raise the reserve requirement and lower the discount rate d. Raise the reserve requirement and raise the discount rate
a. Purchase federal securities and lower the discount rate
The phrase, "The use of a network of autonomous or semi-autonomous business entities collectively responsible for procurement, manufacturing, and distribution activities associated with one or more families of related products," is one possible definition for: a. TQM (total quality management) and continuous improvement. b. supply chain management. c. just-in-time inventory management. d. CAPM (capital asset pricing model) and net present value analysis.
b. supply chain management.
Globalization is a process by which nations of the world become integrated through global networks of communication. Its current success is tied to a number of socioeconomic effects, with one of the key effects being: a. an understanding that the success of the emerging economies is more than simply the cost advantage they have due to having relatively low-cost labor. b. the relatively large labor force in emerging markets and declining birth rates that have historically been associated with dynamic positive economic change. c. an undervalued currency in emerging economies that would stimulate exports and strong investment in infrastructure. d. the fact that innovation blowbacks as the low-priced, high-quality products developed for the emerging economics now will be effectively marketed and sold in the developed world.
b. the relatively large labor force in emerging markets and declining birth rates that have historically been associated with dynamic positive economic change.
In year 1, a large domestic manufacturer produces all of its motors domestically and sells them internationally. The company's management team is in the process of developing its year 2 budget, and copper costs represent a significant line item in the budget. In year 1, the company spent $1,000,000 in purchasing 250,000 pounds of copper. Economic data indicate that in year 1 copper costs had a price index of 120.0, and expectations are that the index will increase to 126.0 in year 2. Management anticipates a 5% increase in copper usage for year 2. What amount represents the year 2 budget for copper purchases? a. $1,000,000 b. $1,050,000 c. $1,102,500 d. $1,300,000
c. $1,102,500
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 121.3 10 years ago. After adjusting for inflation, what percentage change occurred in expenditures for emergency rescue services? a. 38.0% increase b. 13.8% increase c. 0.6% decrease d. 18.1% decrease
c. 0.6% decrease
How does a change in net investment affect the level of income? a. An increase in net investment will be offset directly by a decrease in the level of income. b. A decrease in net investment will be offset directly by an increase in the level of income. c. A decrease in net investment will cause a more than proportional decrease in the level of income. d. An increase in net investment will cause a more than proportional decrease in the level of income.
c. A decrease in net investment will cause a more than proportional decrease in the level of income.
Which of the following is not an impact of deflation? a. Recession b. Rising unemployment c. An increase in interest rates d. A decline in interest rates close to zero
c. An increase in interest rates
Which of the following situations more closely represents the law of demand? a. A decrease in the price of SUVs causes a decrease in the number of SUVs demanded. b. A decrease if the price of SUVs causes no change in the quantity of SUVs demanded. c. An increase in the price of SUVs causes a decrease in the quantity of SUVs demanded. d. An increase in the pump price of gasoline results in a decrease in the quantity of SUVs demanded.
c. An increase in the price of SUVs causes a decrease in the quantity of SUVs demanded.
Which of the following determinants will not cause a change in supply? a. Technology b. The price of other goods c. Consumer expectations d. The number of sellers in the market
c. Consumer expectations
What is a unique characteristic of cryptocurrency that is not applicable to traditional fiat currencies? a. Cryptocurrency is backed by the full faith and credit of a governmental entity. b. Cryptocurrency is transmissible without connection to the internet. c. Cryptocurrency is maintained on a blockchain. d. Cryptocurrency is issued by a central bank or financial institution.
c. Cryptocurrency is maintained on a blockchain.
A company increased the price of its products and noted subsequent decreases in demand as shown below: Price Increase | Demand Decrease Product A: 20% | 40% Product B: 30% | 20% The data above best support which of the following conclusions regarding the price elasticity of demand for the two products? a. Product A is treated by consumers as a necessity. b. Product B is treated by consumers as a luxury item. c. Substitutes are more readily available for Product A than for Product B. d. Substitutes are more readily available for Product B than for Product A.
c. Substitutes are more readily available for Product A than for Product B.
The demand curve for a product reflects which of the following? a. The impact of prices on the amount of product offered b. The willingness of producers to offer a product at alternative prices c. The impact that price has on the amount of a product purchased d. The impact that price has on the purchase amount of two related products
c. The impact that price has on the amount of a product purchased
Supply chain sustainability includes all of the following except: a. economic stability. b. environmental impact. c. political impact. d. stakeholder interest.
c. political impact.
All of the following are implicit costs except: a. opportunity costs. b. potential wages earned. c. purchasing new equipment. d. investments never taken.
c. purchasing new equipment.
A lender and a borrower signed a contract for a $1,000 loan for one 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? a. $1,060.90 b. $1,050.60 c. $1,019.80 d. $1,009.80
d. $1,009.80
Which of the following would not be a successful business strategy resulting from rebalancing due to the shifting balance of power in the international economy? a. Promoting the same standards of quality throughout the world while maintaining the flexibility to tailor product attributes to the customs and traditions of local markets b. Enhancing the use of R&D, integrating innovation, and devising new products at lower costs while developing a long-term customer focus c. Attempting to identify clusters of similar customers across a broad base of international markets to allow building revenue and/or profit streams that would support ongoing capital investment d. Engaging in specialized production for a significant number of local markets by constructing manufacturing facilities in several locations to ensure that products produced would meet local tastes and preferences
d. Engaging in specialized production for a significant number of local markets by constructing manufacturing facilities in several locations to ensure that products produced would meet local tastes and preferences
Providing an adequate supply of money to accommodate the needs of U.S. business is the task of the: a. United States Treasury. b. Comptroller of the Currency. c. Bureau of Printing and Engraving. d. Federal Reserve System.
d. Federal Reserve System.
Which of the following items represents a reduction in the balance of payment accounts for the United States? a. Exports of services to residents of foreign nations b. Loans to domestic entities by foreign commercial banks c. Foreign purchases of assets in the United States d. Imports of assets from foreign countries
d. Imports of assets from foreign countries
Product demand increases and product supply decreases. Which of the following statements is correct regarding resulting market changes? a. Price decreases and quantity increases. b. Price is uncertain and quantity increases. c. Price increases and quantity decreases. d. Price increases and quantity is uncertain.
d. Price increases and quantity is uncertain.
The Federal Reserve wishes to conduct expansionary monetary policy. Which of the following policy approaches will be most successful? a. Sell government securities and raise the required reserve ratio. b. Sell government securities and lower the discount rate. c. Purchase government securities and raise the required reserve ratio. d. Purchase government securities and lower the discount rate.
d. Purchase government securities and lower the discount rate.
An increase in the federal debt may create inflationary pressures for which of the following reasons? a. Businesses may have difficulty raising investment capital. b. The government may need to cut spending. c. Lenders may charge higher interest rates. d. The economy's money supply may increase.
d. The economy's money supply may increase. (An increase in federal debt means more money is being utilized by the Fed Gov relative to their inflows. For debt to increase, the Fed Gov must be running a deficit by spending more than it brings in.)
Which of the following is not a cause of modern economic globalization? a. Inexpensive, rapid, and reliable communication technologies b. The opening of world financial markets c. The dismantling of international tariffs d. The increase in state-sponsored enterprises
d. The increase in state-sponsored enterprises
Which of the following is a false statement about a long-run cost of production? a. All inputs are variable in the long run. b. The long run is also known as the planning period. c. Expanding or contracting plant capacity is the type of decision that would be made in the long run. d. The long run would concentrate on cutting costs.
d. The long run would concentrate on cutting costs.
Two companies make handcrafted wooden ducks and rocking horses. Information about each company's weekly production alternatives is as follows: Company | Ducks | Horses Treasure | 60 | 15 Gem | 24 | 12 Production possibilities are linear. The annual market for ducks in the relevant shipping range is saturated at 4,160 ducks. Treasure and Gem enter into a trade agreement. According to the principle of comparative advantage, which company should produce which product and why? a. Gem should produce horses because it only needs to sacrifice 4 ducks compared to Treasure's 10 ducks. b. Gem should produce ducks because it only needs to sacrifice 2 ducks compared to Treasure's 4 ducks. c. Treasure should produce horses because it only needs to sacrifice 1/2 of a horse compared to Gem's 1/4th of a horse. d. Treasure should produce ducks because it only needs to sacrifice 1/4th of a horse compared to Gem's 1/2 of a horse.
d. Treasure should produce ducks because it only needs to sacrifice 1/4th of a horse compared to Gem's 1/2 of a horse.
The U.S. balance of trade is decreased by: a. foreign investments in the United States. b. U.S. investments in foreign countries. c. U.S. exports. d. U.S. imports.
d. U.S. imports.
The Steelworkers Union argued that the standard-of-living for union members had declined through the life of the recently expired contract. The management negotiating team replied that this was not true since workers had received a 3% wage increase in each year of the 3-year contract. Could the union assertion be true? a. Yes, because the workers' real income might fall if price increases had been proportionally smaller that the wage increases received by the workers b. No, because the workers' real income might rise if price increases are proportionally greater than the wage increases received by the workers c. No, because the workers' real income might rise if price increases are proportionally greater than the decline in worker income d. Yes, because the workers' real income might fall if price increases are proportionally greater than the wage increases received by the workers
d. Yes, because the workers' real income might fall if price increases are proportionally greater than the wage increases received by the workers
Each of the following is an effect from opening markets to foreign investment, except: a. an increase in the correlation of emerging stock markets with world markets. b. a change in the volatility of emerging stock market returns. c. a decrease in local firms' cost of capital. d. a decrease in investment growth rates.
d. a decrease in investment growth rates.
If consumer income increases and as a result the demand for housing increases, we can conclude that housing is: a. a complementary good. b. an inferior good. c. a necessary good d. a normal good.
d. a normal good.
When implicit costs are greater than zero and economic profits in an industry equal zero: a. resources will be unproductive if they remain in the industry. b. there will be no production in the short run. c. resources will move to other industries d. accounting profits will be greater than zero.
d. accounting profits will be greater than zero.
All of the following statements on market equilibrium are true, except: a. market equilibrium is where supply meets demand. b. if there is a decrease in demand, equilibrium quantity and equilibrium price will fall. c. if there is an increase in demand, equilibrium price and equilibrium quantity will increase. d. if there is a decrease in supply, equilibrium quantity falls and equilibrium price also falls.
d. if there is a decrease in supply, equilibrium quantity falls and equilibrium price also falls.
All other things being equal, movement along a supply curve occurs if: a. the number of sellers increases or decreases. b. the price of resources needed in the production of the product is expected to increase. c. technology in the production of the product improves. d. the price for the product increases or decreases.
d. the price for the product increases or decreases.
Technology is constantly changing. An improvement in production techniques that allows for a larger output for a given amount of inputs would result in: a. a shift of the supply curve to the right resulting in more of the product being offered at each price. b. movement along the supply curve resulting in a lower equilibrium quantity and price given the current level of demand for that product. c. a shift of the supply curve to the left resulting in fewer units offered for sale at each price. d. no change in the supply curve but a decrease in price along with an increase in quantity supplied.
a. a shift of the supply curve to the right resulting in more of the product being offered at each price.
Economists and economic policy makers are interested in the multiplier effect because the multiplier explains why: a. a small change in investment can have a much larger impact on gross domestic product. b. consumption is always a multiple of savings. c. the money supply increases when deposits in the banking system increase. d. the velocity of money is greater than one.
a. a small change in investment can have a much larger impact on gross domestic product.
The government has a number of policy options designed to stabilize the level of aggregate demand. If policy makers expected a recession, it might be expected that the government would pursue: a. an expansionary monetary policy and an expansionary fiscal policy. b. an expansionary monetary policy and a contractionary fiscal policy. c. an expansionary fiscal policy and a contractionary monetary policy. d. a contractionary monetary policy and a contractionary fiscal policy.
a. an expansionary monetary policy and an expansionary fiscal policy.
A best-cost producer can gain a competitive advantage: a. by delivering a superior product at a lower price than the competition. b. when buyers are more concerned about price than value. c. when they can do a better job of controlling cost driver activities. d. when they can concentrate on low-cost alternatives that provide product differentiation.
a. by delivering a superior product at a lower price than the competition.
A rise in price levels may result when costs of raw materials or labor increase. This type of price increase is called ________ inflation. a. cost-push b. demand-pull c. intrinsic d. structural
a. cost-push
Firm A received an order for 110 units of specialized pieces of equipment and estimated that their cost of production would be $58,000 per unit. Then they received an order for an additional 120 units of the same equipment. Management recognized that they would need to expand plant production to be able to fulfill both orders. They estimated that their cost of production would fall to $50,000 per unit. The change in cost per unit can best be explained by: a. economies of scale. b. the law of diminishing returns. c. an increase in fixed costs. d. increasing short-run average total costs.
a. economies of scale.
A niche (focus) strategy based on differentiation can be attractive if: a. the market has distinctive buyer groups who have specific needs in product attributes or have different uses for the product. b. the firm has superior vertical integration and can perform all of the value chain activities necessary to serve the customer. c. the buyers are price sensitive and will quickly switch brands in order to obtain the highest perceived value. d. the industry is quickly expanding into new markets.
a. the market has distinctive buyer groups who have specific needs in product attributes or have different uses for the product.
Joan quit her job where she earned $50,000. She started a business by using $100,000 that she had just inherited instead of investing the money that could have earned 10% a year. The business had sales that equaled $250,000 the first year and expenses equal to $160,000. The economic profit for business for the first year was: a. $90,000. b. $30,000. c. $40,000. d. $80,000.
b. $30,000.
Consumers in Microlandia buy only three general types of products, X, Y, and Z. Each product type is weighted in the consumers market-basket based on the quantity of the item that is purchased. Changes in the prices of these items on a year-to-year basis are given below: Average Price per Unit Product | Quantity | Year 1 | Year 2 X | 20 | $15 | $18 Y | 18 | $25 | $28 Z | 6 | $40 | $38 Using Year 1 as the base year, the country's CPI for Year 2 is: a. 1.05. b. 110.3. c. 90.7. d. 107.8.
b. 110.3.
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? a. 1,000 b. 4,000 c. 4,500 d. 6,000
b. 4,000
Which of the following is not a determinant of price elasticity of demand? a. A large number of substitutes b. A small number of substitutes c. Luxury items versus necessities d. Price change
b. A small number of substitutes
Which of the following statements is incorrect regarding blockchain? a. Once completed, a block goes into the blockchain as a permanent database. b. Blockchain technology (which uses what is known as machine-learning technology (MLT)) is primarily used to verify transactions within digital currencies. c. The blockchain has complete information about different user addresses and their cryptocurrency balances from the genesis block to the most recently completed block. d. Documents can be digitized, coded, and inserted into the blockchain, creating a record that cannot be changed.
b. Blockchain technology (which uses what is known as machine-learning technology (MLT)) is primarily used to verify transactions within digital currencies.
A company currently sells 100,000 units of product A at $10 per unit. The company also sells 100,000 units of product B at the same price. The company raises the price of both products by 10%. Product A has an elasticity of 1.5. Product B has an elasticity of 3.0. Which of the following effects will the price increase most likely have on company revenues? a. Company revenues will increase for both products. b. Company revenues will decrease for both products. c. Company revenues will increase for product A but not product B. d. Company revenues will increase for product B but not product A.
b. Company revenues will decrease for both products.
All other things being equal, what is the most likely impact of imposing import tariffs? a. Overallocation of resources to relatively efficient industries b. Contraction of relatively efficient industries c. Underallocation of resources to relatively inefficient industries d. Increase in exports of domestically produced goods
b. Contraction of relatively efficient industries
Which of the following methods may the Federal Reserve use to reduce inflationary pressures? a. Decrease reserve requirements b. Increase margin requirements c. Increase the money supply d. Decrease the target interest rate
b. Increase margin requirements
Which of the following actions is the acknowledged preventive measure for a period of deflation? a. Increasing interest rates b. Increasing the money supply c. Decreasing interest rates d. Decreasing the money supply
b. Increasing the money supply
Who is helped by inflation? a. Individuals on fixed pension b. People with fixed-rate mortgages c. People on fixed annuities d. Creditors
b. People with fixed-rate mortgages
Which of the following is correct regarding the consumer price index (CPI) for measuring the estimated decrease in a company's buying power? a. The CPI is measured only once every 10 years b. The products a company buys differ from those a consumer buys and therefore the CPI is not the appropriate index for estimating the decrease in a company's purchasing power. c. The CPI measures what consumers will pay for items. d. The CPI is skewed by foreign currency translations.
b. The products a company buys differ from those a consumer buys and therefore the CPI is not the appropriate index for estimating the decrease in a company's purchasing power.
If average household income increases, then the housing market will experience: a. movement along the demand curve. b. a rightward shift in the demand curve. c. movement along and a shift in the demand curve d. there will be no change in the demand curve or movement along the demand curve
b. a rightward shift in the demand curve.
The supply chain business process includes all of the following except: a. customer relationship management. b. credit terms and methodologies. c. customer service management. d. customer orders.
b. credit terms and methodologies.
Diamond Co. uses a material that cost $195 per ton at the beginning of the year and $200 per ton at the end of the year. The industry experienced 4% inflation during the year. What is the change in the real cost of Diamond's material? a. $5.00 per ton decrease b. $7.80 per ton increase c. $2.80 per ton decrease d. $8.00 per ton increase
c. $2.80 per ton decrease
Which of the following is not part of the M1 money supply? a. Checkable deposits b. Coins c. Debt d. Currency
c. Debt
Globalization suggests that firms need to take a serious look at the variety of implications of globalization for business strategies. Among the major factors that need to be considered are: a. the need for scenario planning, which causes the firm to look at a number of different future possibilities for the firm under varying conditions of high uncertainty. b. a plan with how to deal with the expected shifts in labor arbitrage opportunities that will shift geographically over time. c. the fact that the failure of exchange rates to adjust freely caused the first phase of global labor arbitrage to shift service sector jobs to India and the second phase caused manufacturing jobs to shift to China d. the consequences of the fact that emerging economies are becoming drivers in consumption with respect to worldwide growth in demand as well their current position as drivers in production with respect to worldwide production of output.
a. the need for scenario planning, which causes the firm to look at a number of different future possibilities for the firm under varying conditions of high uncertainty.
A company manufactures several lines of automobiles including basic family passenger cars, recreational vehicles, sports cars, small trucks, and luxury cars. As part of its annual planning process, managers of each product line are required to submit estimates for the next five years for sales; changes in staffing levels; radio, television, and newspaper advertising requirements; equipment and building replacements; and new equipment and building needs. Which of the following are you most likely to use to help you estimate the price at which goods might be sold in future years? a. CPM (critical path method) b. PERT (program evaluation review method) c. Current CPI d. Current PPI
c. Current CPI (Although the consumer price index (CPI) does not have any forecasting capability itself, a forecast of price levels is a necessary component of any business plan. Extrapolating the CPI is often used as an estimate of future prices since it is more stable than the producer price index (PPI).)
How does inflation distort reported income? a. Wages are not reflective of current labor rates. b. Sales are not reflective of current product prices. c. Depreciation is not reflective of current fixed-asset replacement costs. d. Interest expense is not reflective of current borrowing rates.
c. Depreciation is not reflective of current fixed-asset replacement costs. (As time passes during a period of inflation, the replacement cost of fixed assets increases while the historical cost remains unchanged.)
Which of the following set of economic variables or factors would not be characteristic of emerging market economies? a. Low-cost labor and high savings rates b. Large currency reserves and high investment in infrastructure c. High debt-to-GDP (gross domestic product) ratios and decreasing trade among and between emerging market countries d. Significant growth in the number of middle-class consumers and improving supply-chain effectiveness
c. High debt-to-GDP (gross domestic product) ratios and decreasing trade among and between emerging market countries
Which of the following changes would most effectively halt a period of inflation? a. Decreasing interest rates by a large amount b. Decreasing savings by a small amount c. Increasing interest rates by a large amount d. Increasing savings by a small amount
c. Increasing interest rates by a large amount
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? a. Increase government spending, reduce taxes, increase money supply, and reduce interest rates b. Reduce government spending, increase taxes, increase money supply, and increase interest rates c. Reduce government spending, increase taxes, reduce money supply, and increase interest rates d. Reduce government spending, reduce taxes, reduce money supply, and reduce interest rates
c. Reduce government spending, increase taxes, reduce money supply, and increase interest rates
Which of the following statements about a short-run cost of production is false? a. At least one input is fixed. b. A change in the amount of labor is possible. c. Short run must be less than two years. d. Short run is also referred to as the operating period.
c. Short run must be less than two years.
Which of the following is not one of the key objectives of supply chain management? a. To reduce the supplier base while developing supplier relationships b. To standardize parts to reduce inventory level c. To ensure that internal transfer prices comply with IRS regulations d. To improve communications at levels of the organization to create an uninterrupted flow of materials and products
c. To ensure that internal transfer prices comply with IRS regulations (Key objectives of the supply chain do not to relate the manner in which a company calculates its transfer prices.)
Variable rate loans reduce the potential interest rate risk of: a. borrowers. b. lenders. c. both borrowers and lenders. d. neither borrowers nor lenders.
c. both borrowers and lenders.
Supply chain metrics are created to measure the performance of the supply chain. If a firm developed metrics to measure things such as fill rates and on-time delivery, we would assume that they are trying to measure: a. manufacturing flexibility. b. supplier relationships. c. customer service. d. the flexibility the firm has to respond to environmental changes.
c. customer service.
Inflation may be measured using each of the following measures, except: a. consumer price index. b. gross domestic product deflator. c. gross domestic product inflator. d. wholesale price index.
c. gross domestic product inflator.
In relation to the balance of trade, all international transactions involving the purchase or sale of physical products between domestic and foreign countries are reflected in: a. the balance of the capital account. b. the official financing account. c. the trade balance in the current account. d. the capital account surplus.
c. the trade balance in the current account.