Test Bank for Economics for Managers 2nd Edition

Test Bank for Economics for Managers 2nd Edition. By and large, managerial decisions are not affected by either microeconomic or macroeconomic forces. 2. B) Managerial decisions are affected primarily by macroeconomic forces. 3. C) Managerial decisions are affected by both microeconomic and macroeconomic forces. 4. D) Managerial decisions are affected primarily by microeconomic forces. Walmartʹs decision in 1994 to continue operating stores in specific cities in Mexico when other firms were pulling out would be best classified as: 1. A) a microeconomic decision. 2. B) a macroeconomic decision. 3. C) both a microeconomic and a macroeconomic decision. 4. D) neither a microeconomic nor a macroeconomic decision. Which of the following would be considered an example of a macroeconomic problem? 1. A) Should Microsoft reduce the price of its Windows operating system? 2. B) Should JP Morgan Chase increase the interest rate it charges its credit card customers? 3. C) Should Mitsubishi eliminate one of its production shifts? 4. D) Should the federal government extend the eligibility period for unemployment benefits? Walmartʹs entry into the market in Mexico had the effect of: 1. A) reducing competition and raising the prices of many of the goods it sells. 2. B) increasing competition and raising the prices of many of the goods it sells. 3. C) increasing competition and lowering the prices of many of the goods it sells. 4. D) reducing competition and lowering the prices of many of the goods it sells. Which of the following statements is false? 1. A) While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the managerʹs control. 2. B) Price determination is the key element in any market system. 3. C) Input prices influence a firmʹs costs of production. 4. D) Output prices influence a firmʹs revenues. All else constant, the choice of whether to use a labor-intensive production process or a capital-intensive one is depends on: 1. A) the absolute prices of capital and labor. 2. B) whether the economy is growing or shrinking. 3. C) the relative prices of capital labor. 4. D) the type of market in which the firm operates. Which of the following is not a characteristic of a perfectly competitive market?