C211 OA Exam Questions & Answers 2024 Graded A+., Exams of Community Corrections

Download C211 OA Exam Questions & Answers 2024 Graded A+. and more Exams Community Corrections in PDF only on Docsity! C211 OA Exam Questions & Answers 2024 Graded A+. 1) View that claims phenomenon of globalization was initially driven by the desire of Western economies to exploit their power through MNE's - Correct answer new 2) View that claims globalization is a long-run historical evolution since the dawn of humanity. Says it is nothing new and that it will always exist - Correct answer evolutionary 3) View that claims globalization is swinging from one extreme to another from time to time - Correct answer pendulum 4) Investment in, controlling, and managing value-added activities in other countries - Correct answer foreign direct investment 5) Political view hostile to FDI. Believes it is an instrument of imperialism and vehicle for exploitation of domestic resources by foreign capitalists and firms - Correct answer radical 6) Suggests that FDI, unrestricted by government intervention, will enable countries to tap into their absolute or comparative advantages by specializing in the production of certain goods and services - Correct answer free market 7) Views FDI as having pros and cons and only approving FDI when its benefits outweigh costs - Correct answer pragmatic nationalist 8) What benefits exist to a country receiving FDI? - Correct answer capital inflow, technology spillovers, advanced management know-how, creates jobs 9) What costs exist to a country receiving FDI? - Correct answer loss of sovereignty, adverse effects on competition, net outflow in the capital account 10)The aggregation of importing and exporting that leads to the country-level trade surplus or deficit. - Correct answer balance of trade 11)Firms with a _____ degree of resource similarity are likely to have similar competitive actions - Correct answer high 12)A high degree of resource similarity but low market commonality = _______ intensity of rivalry - Correct answer highest 13)Little resource similarity but high market commonality = _____ intensity of rivalry - Correct answer lowest 14)Mercantilism, absolute advantage and comparative advantage belong to what theory of international trade - Correct answer classical 15)Theory of international trade that relies on more realistic product life cycles and first mover advantages - Correct answer modern 16)Under free trade, a nation gains by specializing in economic activities in which it has _____advantage - Correct answer absolute 17)Focuses on the idea that if a country does not have absolute advantage, they can still choose to specialize in the production of one good where it has ______ advantage - Correct answer comparative 18)Comparative advantage and absolute advantage stem from - Correct answer factor endowments 19)Theory that the wealth of the world is fixed and that a nation that imports more and exports less will be richer - Correct answer mercantilism 20)Stage of the product life cycle where production of a new product that commands a price premium will concentrate in the US - Correct answer new 21)Stage of the product life cycle where demand and ability to produce grow in other developed nations - Correct answer maturing 22)Stage of the product life cycle where the previously new product is commoditized and production will now move to low-cost developing nations - Correct answer standardized 23)Comparative advantage may change over time because patterns of ______ change over time - Correct answer trade 24)Theory that suggests that intervention by governments in certain industries can enhance their odds for international success - Correct answer strategic trade 53)The economic system of most countries - Correct answer mixed economy 54)A curve that represents a consumers preferences - Correct answer indifference curve 55)________ Indifference curves are preferred to ______ ones - Correct answer higher, lower 56)Indifference curves are bowed ______ - Correct answer inward 57)the rate at which a consumer is willing to substitute one good for another - Correct answer marginal rate of substitution 58)The limit on consumption bundles that a consumer can afford - Correct answer budget constraint 59)A piece of analysis that shows the combination of goods the consumer can afford given their income and price of goods - Correct answer budget constraint 60)An increase in income will shift the budget constraint ________ - Correct answer outward 61)The slope of the indifference curve equals the slope of the - Correct answer budget constraint 62)The consumer chooses consumption of the two goods so that the marginal rate of substitution equals the - Correct answer relative price 63)The increase in total cost that results from adding an additional unit of production - Correct answer marginal cost 64)Formula to calculate marginal cost - Correct answer change in total cost / change in quantity 65)A firm will produce the quantity where MR = MC as long as ________ - Correct answer price > AVC 66)When price falls below the AVC, what will a firm do? - Correct answer shut down temporarily 67)Someone who has to take the market price of a product and accept it as their own price - Correct answer price taker 68)The demand curve for a perfectly competitive firm is - Correct answer horizontal 69)The demand curve for a monopolistic market is - Correct answer downward sloping 70)Where do firms with market power determine the quantity of product/service they will produce? - Correct answer quantity where MR = MC, quantity where P = MC 71)Where will firms with price setting capacity maximize profits? - Correct answer intersection between the marginal cost curve and the marginal revenue curve 72)A market with only a few sellers offering similar or identical products - Correct answer oligopoly 73)A firm is a sole seller of a product with no close substitutes - Correct answer monopoly 74)Many firms sell similar products but not identical. Many firms compete for the same customers, free entry and exit - Correct answer monopolistic competition 75)Many buyers and sellers, identical products, free entry and exit, perfect information, price taker - Correct answer perfectly competitive 76)What may rare, precious, and hard-to-duplicate resources and capabilities lead to for a firm? - Correct answer sustained comparative advantage 77)Company strategies must consider actions by rival firms is a lesson learned from what - Correct answer prisoners dilemma about oligopoly 78)What prevents oligopolistic firms from behaving like monopolies? - Correct answer antitrust laws 79)Oligopolies are best off when producing a ______ quantity of output and charging a price ______ marginal cost - Correct answer small, above 80)Decrease in income _______ demand for normal goods - Correct answer decreases 81)Decrease in income ______ demand for inferior goods - Correct answer increases 82)Increase in income _____ demand for inferior goods - Correct answer decreases 83)Increase in income ______ demand for normal goods - Correct answer increases 84)Good in which people will purchase more of as their income increases - Correct answer normal good 85)Good in which people will purchase less of as their income increases - Correct answer inferior good 86)Coke and Pepsi are examples of - Correct answer substitutes 87)Hot dogs and hot dog buns are examples of - Correct answer complements 88)Normal and inferior goods, complements and substitutes, expectations about the future and tastes and number of buyers influence the position of the - Correct answer demand curve 89)Demand that is greater than one - Correct answer elastic 90)Demand that is less than one - Correct answer inelastic 91)How is income elasticity measured? - Correct answer percentage change in quantity demanded / percentage change in income 92)A change in price will cause a large change in the quantity demanded - Correct answer elastic 93)A change in price will not cause a large change in the quantity demanded - Correct answer inelastic 94)The percentage change in price is equal to the percentage change in quantity demanded - Correct answer unit-elastic 95)Necessities have a _____ income elasticity - Correct answer small 123) Gross domestic product measures what two things? - Correct answer total amount of expenditures and total income of everyone in the economy 124) 4 components of GDP - Correct answer 1. Consumption 125) 2. Investment 126) 3. Government purchases 127) 4. Net exports (exports minus imports) 128) Which payments are not counted in government expenditures? - Correct answer transfer payments, social security 129) A tax on goods produced abroad and sold domestically - Correct answer tariff 130) A method used to restrict international trade by taxing imported goods - Correct answer tariff 131) The fall in total surplus that results from a tax - Correct answer deadweight loss 132) Financial environment in which exchange rates and payments for goods and services are conducted - Correct answer international monetary system 133) what happens to a country's real exchange rate and nominal interest rate as the price level increases - Correct answer exchange rates depreciate, interest rates increase 134) Easiest method non-financial companies use to handle currency fluctuations - Correct answer currency diversification 135) Strategy that minimizes the risk of unanticipated changes in future exchange rates - Correct answer currency swap 136) A non-equity arrangement for a company contemplating entry into a foreign market - Correct answer licensing 137) What size commitment is required for a non-equity mode of entry into a foreign market? - Correct answer small 138) Two supportive pillars of an informal institution - Correct answer normative and cognitive 139) Reducing uncertainty is the key role of an institution according to which view - Correct answer institution based view 140) The rules, enforcement mechanisms, and organizations that support market transactions are referred to as _____. - Correct answer institutions 141) Two polar types of economies - Correct answer centrally planned and market 142) In addition to improving efficiency, why might a government intervene in a market? - Correct answer to promote equality 143) What is the relationship between marginal cost and total cost? - Correct answer marginal cost is the change in total cost divided by the change in quantity 144) A seller maximize profits in a perfectly competitive market by producing - Correct answer the quantity where P = MC 145) The economic profit of a competitive firm is the difference between _______ and _______ - Correct answer total revenue and total cost 146) When average variable costs are above the price, what should a firm do? - Correct answer temporarily shut down 147) What is the producers demand curve when the producer sells a differentiated product? - Correct answer downward sloping 148) A competitive firms demand curve is ______ elastic than a monopoly's demand curve - Correct answer more 149) At which point does a monopoly maximize profit? - Correct answer where MC = MR 150) Many firms and differentiated products - Correct answer monopolistic competition 151) If the consumer’s budget constraint has shifted inwards, the consumer will buy ______ normal goods and ______ inferior goods - Correct answer fewer normal goods and more inferior goods 152) If there is an increase in market demand in a perfectly competitive market, equilibrium price will ______ and equilibrium quantity will ______ - Correct answer they will both increase 153) If both demand and supply decrease, what will happen to equilibrium price and quantity? - Correct answer quantity will decrease, but price can either increase or decrease 154) The positive or negative numbers of cross price elasticity of demand represent what? - Correct answer complements and substitutes 155) Enacting a permanent income tax cut is what kind of policy? - Correct answer fiscal 156) An increase in the money supply will ______ interest rates and ______ AD - Correct answer decrease, increase 157) A nation ends a tariff on bananas, which is an imported product. What will be the effect on banana prices within that nation? - Correct answer the market price will match the global market price 158) Implementing a new tariff does what for the government? - Correct answer increases tax revenues 159) The idea that governments should actively protect domestic industries from imports and vigorously promote exports - Correct answer modern day protectionism 160) The classic single-shot exchange of one currency for another. - Correct answer spot transactions 161) Allows participants to buy and sell currencies now for future delivery - Correct answer forward transactions 162) A foreign exchange transaction where one currency is converted into another - Correct answer currency swap