1 | Page
Wal-Mart Effect test Questions and
Correct Answers/ Latest Update /
Already Graded
Economies of scale
Ans: Benefitting from volume
Ex: Wal-Mart benefits from economies of scale because of its thin profit
margin
Raw material
Ans: Basic material used to make something
Ex: wood
Predatory pricing
Ans: 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)
, 2 | Page
Outsourcing
Ans: Sending work to be done outside of the company (doesn't have to
be international)
Ex: salmon, sprinkler company
Social contract
Ans: 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
Ans: Long term, doing business that won't exhaust
Correlation
Ans: indicates a relationship between 2 variables
Causation
Wal-Mart Effect test Questions and
Correct Answers/ Latest Update /
Already Graded
Economies of scale
Ans: Benefitting from volume
Ex: Wal-Mart benefits from economies of scale because of its thin profit
margin
Raw material
Ans: Basic material used to make something
Ex: wood
Predatory pricing
Ans: 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)
, 2 | Page
Outsourcing
Ans: Sending work to be done outside of the company (doesn't have to
be international)
Ex: salmon, sprinkler company
Social contract
Ans: 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
Ans: Long term, doing business that won't exhaust
Correlation
Ans: indicates a relationship between 2 variables
Causation
