©THEBRIGHT 2024/2025 ALL RIGHTS RESERVED 10:15AM A+
Wal-Mart Effect test Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Economies of scale - Answer✔Benefitting from volume
Ex: Wal-Mart benefits from economies of scale because of its thin profit margin
Raw material - Answer✔Basic material used to make something
Ex: wood
Predatory pricing - Answer✔Pricing something lower than usual, temporarily, to drive out other
competition (Wal-Mart's intention isn't really to drive other business out of competition)
Outsourcing - Answer✔Sending work to be done outside of the company (doesn't have to be
international)
Ex: salmon, sprinkler company
Social contract - Answer✔Unspoken set of rules that society agrees on to be not acceptable
(how we're going to interact with each other)
Ex: child labor, food safety expectations
Sustainability - Answer✔Long term, doing business that won't exhaust
Correlation - Answer✔indicates a relationship between 2 variables
Causation - Answer✔Connection between 2 events or states such that one produces or brings
about the other
Economies of efficiency - Answer✔goods are produced at their lowest possible cost, as are the
variable inputs of production
Economies of competition - Answer✔
Competitive advantage - Answer✔a condition or circumstance that puts a company in a
favorable or superior business position
1
Wal-Mart Effect test Exam Questions And
Answers |Latest 2025 | Guaranteed Pass.
Economies of scale - Answer✔Benefitting from volume
Ex: Wal-Mart benefits from economies of scale because of its thin profit margin
Raw material - Answer✔Basic material used to make something
Ex: wood
Predatory pricing - Answer✔Pricing something lower than usual, temporarily, to drive out other
competition (Wal-Mart's intention isn't really to drive other business out of competition)
Outsourcing - Answer✔Sending work to be done outside of the company (doesn't have to be
international)
Ex: salmon, sprinkler company
Social contract - Answer✔Unspoken set of rules that society agrees on to be not acceptable
(how we're going to interact with each other)
Ex: child labor, food safety expectations
Sustainability - Answer✔Long term, doing business that won't exhaust
Correlation - Answer✔indicates a relationship between 2 variables
Causation - Answer✔Connection between 2 events or states such that one produces or brings
about the other
Economies of efficiency - Answer✔goods are produced at their lowest possible cost, as are the
variable inputs of production
Economies of competition - Answer✔
Competitive advantage - Answer✔a condition or circumstance that puts a company in a
favorable or superior business position
1
