Mid-term Exam 2021

Question 1

The origin of the word economy is derived from a Greek word “oikonomia” which means:

Accepted Answer

Household management.

Question 2

The dollar auction game was designed by:

Accepted Answer

Martin Shubik.

Question 3

Which of the following could not possibly be included in the same market as Coke?

Accepted Answer

Milka

Question 4

Why is market definition important for economic decision making?

Accepted Answer

Both Red and Yellow

Question 5

Which of the following is not a leading cause of business failure?

Accepted Answer

Production of high valued-added products.

Question 6

Which of the following is not an example of a way in which microecon analysis can help in designing environmental pol?

Accepted Answer

Lobbying consumers and firms to reduce consumption of energy

Question 7

Which of the following is a positive statement?

Accepted Answer

When a country imports more than it exports, its balance of trade is <0

Question 8

Use the following two statements to answer this questions (question 29)

Accepted Answer

Statement 1 is true and statement 2 is false

Question 9

Which of the following is not an ex of ways in which microecon analysis can help Toyota MC in its corporate decision

Accepted Answer

Forecasting the effect of T’s hiring patterns on the U.S. unemploymt rate

Question 10

Which of the following is a normative statement? Question 19

Accepted Answer

Statements A, B, C and D.

Question 11

In a competitive market:

Accepted Answer

No single buyer or seller can significantly affect the market price.

Question 12

Firms face trade-offs in production including decisions related to:

Accepted Answer

All of the above.

Question 13

Which of the following is not an element of Porter’s 5 Forces Model?

Accepted Answer

The threat of complementary goods.

Question 14

Which of the following is not an element of Porter’s 5 Forces Model?

Accepted Answer

The firm’s macroeconomic environment.

Question 15

A market dominated by two or three producers is:

Accepted Answer

An oligopoly.

Question 16

The problem of scarcity means that people face trade-offs. Which of the following trade-offs are concern of microecon?

Accepted Answer

All of the above.

Question 17

"You can't always get what you want". Which of the following statements is the best example of a microeconomic theme?

Accepted Answer

C must take the best purchasing decisions they can given their limited I.

Question 18

The price of prescription medicine is high partly because when someone is sick there is no real alternative ...

Accepted Answer

Threat of substitutes.

Question 19

What is the definition of “utility” in economics?

Accepted Answer

The pleasure gained from the consumption of a good or a service.

Question 20

For the hospitality industry, the development of price comparators on web represents:

Accepted Answer

A change in bargaining power of consumers.

Question 21

Banks and insurance companies are gathered in the institutional sector of:

Accepted Answer

Financial corporations.

Question 22

Which of the following is a service?

Accepted Answer

An economic course at ESSCA

Question 23

System of free competition where prices are determined by supply and demand:

Accepted Answer

Market Economy.

Question 24

Taylor Swift’s success has led Apple to pay royalties to artists on Apple Music. It illustrates:

Accepted Answer

The bargaining power of suppliers.

Question 25

The percentage of drivers who rated themselves as above the average was about (in Svenson's study):

Accepted Answer

93%

Question 26

You're in charge of product pricing strat for a company. You will have greater ability to independendently set prices if

Accepted Answer

There are no close substitutes for your product.

Question 27

Which institutional sector it is: produce non-market g&s and whose resources mainly come from compulsory contributions

Accepted Answer

General government.

Question 28

Thinking system 2 is the thinking system that leads to reflective decision making. This statement is (see lecture 3):

Accepted Answer

True

Question 29

The basic premise behind worker trade-offs in a market economy is that: (w stands for workers or work and l for leisure)

Accepted Answer

Workers decide how to allocate their time between work and leisure.

Question 30

Porter’s Five Forces Model helps to do what?

Accepted Answer

Analyse the potential attractiveness and profitability of specific industry

Mid-term Exam 2021

Questions 30

Mid-term Exam 2021

Questions 30