Global Economics - C211
Preassessment.
A company is looking for a location with an abundance of ground-breaking individuals,
firms, and universities. Which type of strategic goal is this company demonstrating? -
ANSWER-Innovation Seeking
A Competitive firm's demand curve? - ANSWER-More elsatic than a monopoly's
demand curve
A nation ends a tariff on bananas, which is an imported product. What will be the effect
on banana prices within that nation? - ANSWER-The price will match the global market
price
A painter spends $200 on paint. He then bills the homeowner $1,000 to cover his time
and his expenses. What is the amount of these transactions that is added to gross
domestic product (GDP)? - ANSWER-1,000
A U.S. state purchases a fleet of new highway patrol vehicles manufactured in Japan.
Which two statements correctly describe how the components of U.S. gross domestic
product (GDP) are affected? - ANSWER-Net Exports decrease and Government
expenditures increase
Economic gains come from international trade because one country's exported goods,
services, or other items are unique, valuable, and difficult to duplicate to the importing
countries. Which view does this statement portray? - ANSWER-Resource Based Vew
Economic profit of a competitive firm? - ANSWER-The difference between total revenue
and total cost
How does the prisoner's dilemma help in understanding company behavior in an
oligopoly? - ANSWER-People and firms are concerned with their self interests
How is consumer surplus represented on a graph? - ANSWER-The area below the
demand curve and above price
In addition to encouraging efficiency, why might a government intervene in a market? -
ANSWER-To promote equality
In which type of political system do citizens elect representatives to govern the country
on their behalf? - ANSWER-Democracy
maximize profits perfectly competitive market - ANSWER-Quantity where price equals
the farmer's marginal cost
Preassessment.
A company is looking for a location with an abundance of ground-breaking individuals,
firms, and universities. Which type of strategic goal is this company demonstrating? -
ANSWER-Innovation Seeking
A Competitive firm's demand curve? - ANSWER-More elsatic than a monopoly's
demand curve
A nation ends a tariff on bananas, which is an imported product. What will be the effect
on banana prices within that nation? - ANSWER-The price will match the global market
price
A painter spends $200 on paint. He then bills the homeowner $1,000 to cover his time
and his expenses. What is the amount of these transactions that is added to gross
domestic product (GDP)? - ANSWER-1,000
A U.S. state purchases a fleet of new highway patrol vehicles manufactured in Japan.
Which two statements correctly describe how the components of U.S. gross domestic
product (GDP) are affected? - ANSWER-Net Exports decrease and Government
expenditures increase
Economic gains come from international trade because one country's exported goods,
services, or other items are unique, valuable, and difficult to duplicate to the importing
countries. Which view does this statement portray? - ANSWER-Resource Based Vew
Economic profit of a competitive firm? - ANSWER-The difference between total revenue
and total cost
How does the prisoner's dilemma help in understanding company behavior in an
oligopoly? - ANSWER-People and firms are concerned with their self interests
How is consumer surplus represented on a graph? - ANSWER-The area below the
demand curve and above price
In addition to encouraging efficiency, why might a government intervene in a market? -
ANSWER-To promote equality
In which type of political system do citizens elect representatives to govern the country
on their behalf? - ANSWER-Democracy
maximize profits perfectly competitive market - ANSWER-Quantity where price equals
the farmer's marginal cost
