C211 OA Final EXAM Questions AND Correct Answers
________ indifference curves are preferred to ______ ones - ✔✔higher, lower
4 components of GDP - ✔✔1. consumption
2. investment
3. government purchases
4. net exports (exports minus imports)
a change in price will cause a large change in the quantity demanded -
✔✔elastic
a change in price will not cause a large change in the quantity demanded -
✔✔inelastic
a competitive firms demand curve is ______ elastic than a monopoly's demand
curve - ✔✔more
a curve that represents a consumers preferences - ✔✔indifference curve
a firm is a sole seller of a product with no close substitutes - ✔✔monopoly
a firm will produce the quantity where MR = MC as long as ________ - ✔✔price
> AVC
,a foreign exchange transaction where one currency is converted into another -
✔✔currency swap
a high degree of resource similarity but low market commonality = _______
intensity of rivalry - ✔✔highest
a market with only a few sellers offering similar or identical products -
✔✔oligopoly
a means of spreading out activities in different currency zones in order to offset
the currency losses in certain regions through gains in other regions -
✔✔strategic heding
a method used to restrict international trade by taxing imported goods -
✔✔tariff
A nation ends a tariff on bananas, which is an imported product. What will be
the effect on banana prices within that nation? - ✔✔the market price will match
the global market price
a non equity arrangement for a company contemplating entry into a foreign
market - ✔✔licensing
a piece of analysis that shows the combination of goods the consumer can
afford given their income and price of goods - ✔✔budget constraint
, a seller maximize profits in a perfectly competitive market by producing -
✔✔the quantity where P = MC
a tax on goods produced abroad and sold domestically - ✔✔tariff
abundance of innovative individuals, firms, and universities - ✔✔innovation
seeking
abundance of strong market demand and customers willing to pay - ✔✔market
seeking
allows participants to buy and sell currencies now for future delivery -
✔✔forward transactions
amount of resources committed to entering a foreign market - ✔✔scale of entry
an increase in income will shift the budget constraint ________ - ✔✔outward
an increase in the money supply will ______ interest rates and ______ AD -
✔✔decrease, increase
an MNE enters foreign markets via _______ modes through FDI - ✔✔equity
at which point does a monopoly maximize profit? - ✔✔where MC = MR
________ indifference curves are preferred to ______ ones - ✔✔higher, lower
4 components of GDP - ✔✔1. consumption
2. investment
3. government purchases
4. net exports (exports minus imports)
a change in price will cause a large change in the quantity demanded -
✔✔elastic
a change in price will not cause a large change in the quantity demanded -
✔✔inelastic
a competitive firms demand curve is ______ elastic than a monopoly's demand
curve - ✔✔more
a curve that represents a consumers preferences - ✔✔indifference curve
a firm is a sole seller of a product with no close substitutes - ✔✔monopoly
a firm will produce the quantity where MR = MC as long as ________ - ✔✔price
> AVC
,a foreign exchange transaction where one currency is converted into another -
✔✔currency swap
a high degree of resource similarity but low market commonality = _______
intensity of rivalry - ✔✔highest
a market with only a few sellers offering similar or identical products -
✔✔oligopoly
a means of spreading out activities in different currency zones in order to offset
the currency losses in certain regions through gains in other regions -
✔✔strategic heding
a method used to restrict international trade by taxing imported goods -
✔✔tariff
A nation ends a tariff on bananas, which is an imported product. What will be
the effect on banana prices within that nation? - ✔✔the market price will match
the global market price
a non equity arrangement for a company contemplating entry into a foreign
market - ✔✔licensing
a piece of analysis that shows the combination of goods the consumer can
afford given their income and price of goods - ✔✔budget constraint
, a seller maximize profits in a perfectly competitive market by producing -
✔✔the quantity where P = MC
a tax on goods produced abroad and sold domestically - ✔✔tariff
abundance of innovative individuals, firms, and universities - ✔✔innovation
seeking
abundance of strong market demand and customers willing to pay - ✔✔market
seeking
allows participants to buy and sell currencies now for future delivery -
✔✔forward transactions
amount of resources committed to entering a foreign market - ✔✔scale of entry
an increase in income will shift the budget constraint ________ - ✔✔outward
an increase in the money supply will ______ interest rates and ______ AD -
✔✔decrease, increase
an MNE enters foreign markets via _______ modes through FDI - ✔✔equity
at which point does a monopoly maximize profit? - ✔✔where MC = MR
