Question

1) Since 2001, several developments caused the process of globalization to slowdown. These include all but

A. Fragmentation of production globally
B. Financial crises and the impact they have on domestic economic policy and trade protectionism
C. Cyber attacks
D. Increased costs of security and insurance due to risks and uncertainty of terrorism
2) Which of the following is NOT a part of the five steps in the decision-making process?
A. Implement the decision
B. Identify competitors
C. Select the best possible solution
D. Define the problem
3) When rent controls are imposed below the current market price they can do all except
A. Reduce the level of supply of rental housing
B. Reduce the quality of rental housing
C. Create excess supply of rental housingD. Increase the quantity of rental housing demanded
4) True or False: A minimum wage set below the market equilibrium wage will result in higher unemployment.
5) True or False: Non-clearing markets often have spillover effects into related markets. For example, when a concert promoter deliberately sets the ticket price below the market equilibrium price, this may result in greater sales of the performer's recordings.
6) Risk and uncertainty associated with terrorism have caused all except
A. Caused security and insurance costs to increase
B. In a way created a "tariff" on many business activities
C. Redirected resources from directly productive activities
D. Reversed the process of globalization
7) At a price of $299.99, the manufacturer of a portable air conditioner is willing to produce 19,000 units per quarter. At a price of $349.99, it is likely that the manufacturer will be willing to produce
A. More than 19,000 units per quarter
B. Fewer than 19,000 units per quarter
C. It is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce
D. 19,000 units per quarter

Answer 1

1) C. Cyber attacks

2) B. Identify competitors

3) C. Create excess supply of rental housing

4) True

5) True

6) D. Reversed the process of globalization

7) It is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce (the information given only allows us to determine the quantity of units the manufacturer is willing to produce at specific prices, not the exact relationship between price and quantity supplied)