Test Bank for Economics of Strategy 7th Edition by David Dranove, David Besanko Mark & Scott Schaefer | 9781119042310 |QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW!!

,File: gch01, gChapter g1: gThe gPower gof gPrinciples: gA gHistorical gPerspective



Multiple gChoice



1. Which gof gthe gfollowing gdid gnot gcontribute gto gthe ghigh gtransaction grelated grisks gfor gU.S. gpotato gsales
gin g1840?

a) Infrequency gof gtransactions
b) Changing gtransaction gpartners
c) Lack gof gavailability gof gsales gand gprices gfor gcomparable ggoods
d) Competition gfrom gEuropean gmerchants
e) Geographic gdistance gbetween gbuyers gand gsellers

Ans: gd
Heading: gThe gWorld gin g1840 g– gDoing gBusiness gin g1840
gLevel: gMedium




2. What gwas ga gkey gcontribution gto gthe gdominance gof gthe gfamily-run gsmall gbusiness gin g1840?
a) Factories
b) Infrastructure
c) Raw gMaterials
d) Management
e) Laws

Ans: gb
Heading: gThe gWorld gin g1840 g– gConditions gof gBusiness gin g1840: gLife gwithout ga gModern gInfrastructure
gLevel: gEasy




3. Matchmakers gbetween gmanufacturers gand gsellers gare gcalled:
a) Agents
b) Factors
c) Brokers
d) Merchants
e) None gof gthe gAbove

Ans: g c
Heading: g Doing gBusiness gin g1840
gLevel: g Easy




4. What gsignificant gtransportation gevent gbrought gabout gthe gfirst gsignificant ggrowth gof gthe gGreat
gLakes gregion?

a) Harnessing gof gthe gsteam gengine
b) Invention gof gthe gscrew gpropeller

,c) Opening gof gthe gErie gCanal
d) Integration gof grailway gsystem
e) Invention gof gthe grailway gsystem

Ans: gc
Heading: gThe gWorld gin g1840 g– gConditions gof gBusiness gin g1840: gLife gwithout ga gModern gInfrastructure g–
gTransportation

Level: gMedium



5. What gis gthroughput?
a) The gmovement gof ginputs gand goutputs gthrough ga gproduction gprocess
b) Assets gthat gassist gin gthe gproduction gor gdistribution gof ggoods gand gservices
c) A gcondition gthat gdetermines gthe ghorizontal gand gvertical gboundaries gof gbusiness gfirms
d) An ginvestment gin gthe gacquisition gof graw gmaterials
e) The gamount gof gtime gfor ga ggood gto gtravel gbetween gmetropolitan gareas

Ans: ga
Heading: gExample g4.1 g– gThe gEmergence gof gChicago
gLevel: gHard




6. What gmode gof glong-distance gcommunication gfirst glaid gthe ggroundwork gfor gtoday’s
gmodern gcommunication gforms?

a) U.S. gPostal gService
b) Private gmail gservice
c) Telegraph
d) Telephone
e) Railroad

Ans: gd
Heading: gThe gWorld gin g1840 g– gConditions gof gBusiness gin g1840: gLife gwithout ga gModern gInfrastructure g–
gCommunications

Level: gEasy



7. What gwas gthe gmajor grole gof gprivate gbanks gin gthe gearly g1800s?
a) Serve gas gan ginstitution gfor gdeposits
b) Issue gcredit
c) Reduce gthe grisk gof gprice gfluctuation
d) Create gfutures gmarkets
e) Sell gstocks

Ans: gb
Heading: gThe gWorld gin g1840 g– gConditions gof gBusiness gin g1840: gLife gwithout ga gModern gInfrastructure g–
gFinance

Level: gMedium

, 8. What gwas gone gof gthe gfirst gplant/factory gtypes gto guse gthe g“American gSystem” gof gmanufacturing?
a) Firearms
b) Steel
c) Oil
d) Automobiles
e) Chemicals

Ans: ga
Heading: gThe gWorld gin g1840 g– gConditions gof gBusiness gin g1840: gLife gwithout ga gModern gInfrastructure g–
gProduction gTechnology

Level: gMedium



9. What geconomics ggame gtheory gconcept gis gdemonstrated gby gthe gErie gCanal gpublic gworks gproject?
a) Nash gequilibrium
b) Lock-in
c) Backwards ginduction
d) Fair gdivision
e) Prisoner’s gdilemma

Ans: ge
Heading: gThe gWorld gin g1840 g– gConditions gof gBusiness gin g1840: gLife gwithout ga gModern gInfrastructure g-
gGovernment

Level: gEasy



10. What gwas gthe gmost gsignificant gdevelopment gto gthe gevolution gof gbusiness gcirca g1910?
a) Railroad gintegration
b) Telegraph g communication gexpansion
c) Banking gand gaccounting gstandard gpractices
d) Mass-production gtechnology
e) Advent gof gsteam gtechnology gin grailroads gand gshipping

Ans: gd
Heading: gThe gWorld gin g1910 g– gDoing gBusiness gin g1910
gLevel: gMedium




11. Which gof gthe gfollowing gled gto goverbuilding gof grailroads gin gthe g1860’s gand g1870’s?
a) Reduction gof gtaxes gon grailroads gby gthe gfederal ggovernment
b) The gsuccess gof grailroads gin gEurope
c) The gavailability gof gfinancing gdue gto gpublic goptimism
d) The glow gcost gof glabor gto gconstruct grailroads
e) Increases gin gregulated gfreight grates gby gthe gInterstate gcommerce

Commission gAns: gc
g