Business Economics Exam Review

Your total revenue for one product is $10.00. Your total revenue for two products is $20.00. What is your marginal revenue?

$10.00

Which of the following is a political influence that an affect currency value?

Change in executive leadership

Even though gasoline prices increase 15 cents per gallon as the result of the new gas tax, Alice continued to buy gas so that she could make her 20-mile drive to work. This is an example of what type of demand?

Inelastic

Which of the following is an advantage of strong currency?

It boosts consumer confidence

Which of the following is a common risk of innovation>?

Loss of jobs

A company decides to start marketing its health food bar as a candy bar. Which type of innovation is taking place?

Positioning

Which of the following is an example of excess supply?

Price = $700, Demand = 300, Supply = 500

Which of the following is a category of innovation?

Product

Yvonne wants her innovation to succeed, so she makes sure that there's a market for her innovation and that she has plenty of money and resources on hand. Which step of achieving innovation is Yvonne demonstrating?

Reducing risk

Your business is selling more large-screen televisions each month. Applying the law of supply and demand, what do you expect to happen to the price and supply of these televisions over the next few months?

The price will increase, and supply will increase

The biggest traders of currency on the foreign exchange market are _________.

commercial and investment banks

A 12-screen movie theater recently opened up in your neighborhood. Just a couple of months after it opened for business,the old-single-screen drive-in movie theater nearby went out of business. This is an example of ____________.

creative destruction

When less expensive substitutes for a product are readily available, then demand for that product is likely to be more __________.

elastic

Another term for quality is __________.

excellence

After a mild, dry winter, the supply of sleds should be __________ than demanded. Therefore, the price would be __________.

greater; decreased

Currency speculation is risky because _________.

it can lead to high inflation

A disadvantage to companies of unionization is that _____________.

job promotions are based on seniority rather than ability

Marginal cost is inversely related to _________.

marginal product

A country's standard of living can be calculated by dividing goods and services its people have by ________.

population

In the exchange-rate quotation GBP/JPY = 171.93, JPY is the ______ currency.

quote