ETS MAJOR FIELD TEST IN BUSINESS LATEST 2024
COMPLETE EXAM 450 PRACTICE QUESTIONS WITH
CORRECT VERIFIED ANSWERS/ GRADED A+
Within the context of the capital asset pricing model (CAPM), the risk
measure known as beta is often computed by regressing the return of the
company's stock against the
(A) return on the company's bonds
(B) return on the market portfolio
(C) change in the gross domestic product
(D) change in the consumer price index - Correct Answer - (B) return on the
market portfolio
A project consists of 150 jobs. The expected completion time for each job is
given in days. The project has three critical paths with two jobs in common,
J and K. In order to finish the project one day early, the completion time
should be reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
(C) either Job J or Job K
(D) both Job J and Job K - Correct Answer - (C) either Job J or Job K
The Organization of the Petroleum Exporting Countries (OPEC) reduces
production by 10 percent, and the growth rate of the world economy begins
pg. 1
,to escalate. How will the simultaneous occurrence of these events affect
the equilibrium price and quantity in the world petroleum market?
(A) Price will increase, but quantity will remain unchanged.
(B) Price will increase, but quantity is indeterminate.
(C) Quantity will increase, but price is indeterminate.
(D) Both price and quantity will increase. - Correct Answer - (B) Price will
increase, but quantity is indeterminate.
Which of the following would most likely occur as a result of the United
States government's imposing tariffs on foreign steel imports?
(A) The price of steel produced in the United States would decrease.
(B) The price of imported steel in the United States would decrease.
(C) Employment in the United States steel industry would increase.
(D) Government tax revenue would fall. - Correct Answer - (C) Employment
in the United States steel industry would increase.
In an economy the unemployment rate is 10 percent and the inflation rate is
1 percent. An appropriate fiscal policy in this phase of the business cycle
would be to
(A) increase government spending
(B) increase income taxes
(C) decrease transfer payments
(D) decrease the money supply - Correct Answer - (A) increase
government spending
pg. 2
,Which of the following is an appropriate Federal Reserve action to
stimulate the United States economy?
(A) Selling government bonds on the open market
(B) Increasing the discount rate
(C) Reducing the reserve requirement
(D) Cutting taxes - Correct Answer - (C) Reducing the reserve requirement
If the spread between the spot and forward exchange rates of two
currencies equals the interest rate difference between the two countries,
this phenomenon is referred to as
(A) purchasing-power equality
(B) commodity arbitrage
(C) currency hedging
(D) interest-rate parity - Correct Answer - (D) interest-rate parity
A firm that would like to know whether it has enough cash to meet its bills
would be most likely to use which category of financial ratio?
(A) Liquidity
(B) Leverage
(C) Efficiency
(D) Profitability - Correct Answer - (A) Liquidity
pg. 3
, A small number of people with complementary skills who are committed to
a common purpose, a set of performance goals, and an approach for which
they hold themselves mutually accountable is referred to as a
(A) committee
(B) task force
(C) group
(D) team - Correct Answer - (D) team
A department manager telephoned two managers in other departments to
discuss a cost savings idea that would benefit their departments as well as
her own. Which of the following most accurately defines the communication
channel that the manager was using?
(A) Upward
(B) Lateral
(C) Downward
(D) Hierarchical - Correct Answer - (B) Lateral
Based on his scientific management theory, Frederick Taylor developed
what pay principle?
(A) Hourly pay
(B) Incentive pay
(C) Profit sharing
(D) Monthly salary with bonus - Correct Answer - (B) Incentive pay
pg. 4
COMPLETE EXAM 450 PRACTICE QUESTIONS WITH
CORRECT VERIFIED ANSWERS/ GRADED A+
Within the context of the capital asset pricing model (CAPM), the risk
measure known as beta is often computed by regressing the return of the
company's stock against the
(A) return on the company's bonds
(B) return on the market portfolio
(C) change in the gross domestic product
(D) change in the consumer price index - Correct Answer - (B) return on the
market portfolio
A project consists of 150 jobs. The expected completion time for each job is
given in days. The project has three critical paths with two jobs in common,
J and K. In order to finish the project one day early, the completion time
should be reduced one day for
(A) each of the 150 jobs
(B) each of the jobs on the three critical paths
(C) either Job J or Job K
(D) both Job J and Job K - Correct Answer - (C) either Job J or Job K
The Organization of the Petroleum Exporting Countries (OPEC) reduces
production by 10 percent, and the growth rate of the world economy begins
pg. 1
,to escalate. How will the simultaneous occurrence of these events affect
the equilibrium price and quantity in the world petroleum market?
(A) Price will increase, but quantity will remain unchanged.
(B) Price will increase, but quantity is indeterminate.
(C) Quantity will increase, but price is indeterminate.
(D) Both price and quantity will increase. - Correct Answer - (B) Price will
increase, but quantity is indeterminate.
Which of the following would most likely occur as a result of the United
States government's imposing tariffs on foreign steel imports?
(A) The price of steel produced in the United States would decrease.
(B) The price of imported steel in the United States would decrease.
(C) Employment in the United States steel industry would increase.
(D) Government tax revenue would fall. - Correct Answer - (C) Employment
in the United States steel industry would increase.
In an economy the unemployment rate is 10 percent and the inflation rate is
1 percent. An appropriate fiscal policy in this phase of the business cycle
would be to
(A) increase government spending
(B) increase income taxes
(C) decrease transfer payments
(D) decrease the money supply - Correct Answer - (A) increase
government spending
pg. 2
,Which of the following is an appropriate Federal Reserve action to
stimulate the United States economy?
(A) Selling government bonds on the open market
(B) Increasing the discount rate
(C) Reducing the reserve requirement
(D) Cutting taxes - Correct Answer - (C) Reducing the reserve requirement
If the spread between the spot and forward exchange rates of two
currencies equals the interest rate difference between the two countries,
this phenomenon is referred to as
(A) purchasing-power equality
(B) commodity arbitrage
(C) currency hedging
(D) interest-rate parity - Correct Answer - (D) interest-rate parity
A firm that would like to know whether it has enough cash to meet its bills
would be most likely to use which category of financial ratio?
(A) Liquidity
(B) Leverage
(C) Efficiency
(D) Profitability - Correct Answer - (A) Liquidity
pg. 3
, A small number of people with complementary skills who are committed to
a common purpose, a set of performance goals, and an approach for which
they hold themselves mutually accountable is referred to as a
(A) committee
(B) task force
(C) group
(D) team - Correct Answer - (D) team
A department manager telephoned two managers in other departments to
discuss a cost savings idea that would benefit their departments as well as
her own. Which of the following most accurately defines the communication
channel that the manager was using?
(A) Upward
(B) Lateral
(C) Downward
(D) Hierarchical - Correct Answer - (B) Lateral
Based on his scientific management theory, Frederick Taylor developed
what pay principle?
(A) Hourly pay
(B) Incentive pay
(C) Profit sharing
(D) Monthly salary with bonus - Correct Answer - (B) Incentive pay
pg. 4
