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1. What is a characteristic of a market economy?
A) Resources are allocated through quotas.
B) Factors of production are privately owned.
C) Prices are fixed by the government.
D) Central planning determines production decisions.
2. In a monopoly, which statements are likely true? (Choose TWO.)
A) Firms are price takers
B) One seller offers a unique good with no close substitutes
C) Entry is free in the long run
D) Marginal revenue equals price
E) There are barriers to entry into the market
3. Which mode of entry is an equity-based entry mode?
A) 50/50 joint ventures
B) Franchising
C) Licensing
D) Indirect exports
4. Which company has a natural resource-seeking strategic goal?
A) A company searching for a location with advanced technology clusters
B) A company searching for a location where labor costs are low
C) A company searching for a location with a large consumer market
D) A company searching for a location where there is an abundance of oil
5. When supply decreases and demand stays the same, what happens to the equilibrium point of price and quantity? Choose two answers.
A) Price remains the same.
B) Price increases.
C) Quantity decreases.
D) Quantity increases.
E) Price decreases.
F) Quantity remains the same.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B,E | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: B,C |
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