Test Bank for Economics of Strategy, 7th Edition by David Dranove, David Besanko, Mark Shanley & Scott Schaefer | 9781119042310 |Complete test bank with all Chapters| Latest Test Bank 100% Verified Answers | LATEST

,File: qch01, qChapter q1: qThe qPower qof qPrinciples: qA qHistorical qPerspective



Multiple qChoice



1. Which qof qthe qfollowing qdid qnot qcontribute qto qthe qhigh qtransaction qrelated qrisks qfor qU.S. qpotato qsales
qin q1840?

a) Infrequency qof qtransactions
b) Changing qtransaction qpartners
c) Lack qof qavailability qof qsales qand qprices qfor qcomparable qgoods
d) Competition qfrom qEuropean qmerchants
e) Geographic qdistance qbetween qbuyers qand qsellers

Ans: qd
Heading: qThe qWorld qin q1840 q– qDoing qBusiness qin q1840
qLevel: qMedium




2. What qwas qa qkey qcontribution qto qthe qdominance qof qthe qfamily-run qsmall qbusiness qin q1840?
a) Factories
b) Infrastructure
c) Raw qMaterials
d) Management
e) Laws

Ans: qb
Heading: qThe qWorld qin q1840 q– qConditions qof qBusiness qin q1840: qLife qwithout qa qModern qInfrastructure
qLevel: qEasy




3. Matchmakers qbetween qmanufacturers qand qsellers qare qcalled:
a) Agents
b) Factors
c) Brokers
d) Merchants
e) None qof qthe qAbove

Ans: q c
Heading: q Doing qBusiness qin q1840
qLevel: q Easy




4. What qsignificant qtransportation qevent qbrought qabout qthe qfirst qsignificant qgrowth qof qthe qGreat
qLakes qregion?

a) Harnessing qof qthe qsteam qengine
b) Invention qof qthe qscrew qpropeller

,c) Opening qof qthe qErie qCanal
d) Integration qof qrailway qsystem
e) Invention qof qthe qrailway qsystem

Ans: qc
Heading: qThe qWorld qin q1840 q– qConditions qof qBusiness qin q1840: qLife qwithout qa qModern qInfrastructure q–
qTransportation

Level: qMedium



5. What qis qthroughput?
a) The qmovement qof qinputs qand qoutputs qthrough qa qproduction qprocess
b) Assets qthat qassist qin qthe qproduction qor qdistribution qof qgoods qand qservices
c) A qcondition qthat qdetermines qthe qhorizontal qand qvertical qboundaries qof qbusiness qfirms
d) An qinvestment qin qthe qacquisition qof qraw qmaterials
e) The qamount qof qtime qfor qa qgood qto qtravel qbetween qmetropolitan qareas

Ans: qa
Heading: qExample q4.1 q– qThe qEmergence qof qChicago
qLevel: qHard




6. What qmode qof qlong-distance qcommunication qfirst qlaid qthe qgroundwork qfor qtoday’s
qmodern qcommunication qforms?

a) U.S. qPostal qService
b) Private qmail qservice
c) Telegraph
d) Telephone
e) Railroad

Ans: qd
Heading: qThe qWorld qin q1840 q– qConditions qof qBusiness qin q1840: qLife qwithout qa qModern qInfrastructure q–
qCommunications

Level: qEasy



7. What qwas qthe qmajor qrole qof qprivate qbanks qin qthe qearly q1800s?
a) Serve qas qan qinstitution qfor qdeposits
b) Issue qcredit
c) Reduce qthe qrisk qof qprice qfluctuation
d) Create qfutures qmarkets
e) Sell qstocks

Ans: qb
Heading: qThe qWorld qin q1840 q– qConditions qof qBusiness qin q1840: qLife qwithout qa qModern qInfrastructure q–
qFinance

Level: qMedium

, 8. What qwas qone qof qthe qfirst qplant/factory qtypes qto quse qthe q“American qSystem” qof qmanufacturing?
a) Firearms
b) Steel
c) Oil
d) Automobiles
e) Chemicals

Ans: qa
Heading: qThe qWorld qin q1840 q– qConditions qof qBusiness qin q1840: qLife qwithout qa qModern qInfrastructure q–
qProduction qTechnology

Level: qMedium



9. What qeconomics qgame qtheory qconcept qis qdemonstrated qby qthe qErie qCanal qpublic qworks qproject?
a) Nash qequilibrium
b) Lock-in
c) Backwards qinduction
d) Fair qdivision
e) Prisoner’s qdilemma

Ans: qe
Heading: qThe qWorld qin q1840 q– qConditions qof qBusiness qin q1840: qLife qwithout qa qModern qInfrastructure q-
qGovernment

Level: qEasy



10. What qwas qthe qmost qsignificant qdevelopment qto qthe qevolution qof qbusiness qcirca q1910?
a) Railroad qintegration
b) Telegraph q communication qexpansion
c) Banking qand qaccounting qstandard qpractices
d) Mass-production qtechnology
e) Advent qof qsteam qtechnology qin qrailroads qand qshipping

Ans: qd
Heading: qThe qWorld qin q1910 q– qDoing qBusiness qin q1910
qLevel: qMedium




11. Which qof qthe qfollowing qled qto qoverbuilding qof qrailroads qin qthe q1860’s qand q1870’s?
a) Reduction qof qtaxes qon qrailroads qby qthe qfederal qgovernment
b) The qsuccess qof qrailroads qin qEurope
c) The qavailability qof qfinancing qdue qto qpublic qoptimism
d) The qlow qcost qof qlabor qto qconstruct qrailroads
e) Increases qin qregulated qfreight qrates qby qthe qInterstate qcommerce

Commission qAns: qc
q