Economics of Strategy 8th Edition Final Exam by
David Dranove |Questions and Answers
2024/2025 |Already Graded A+
Multiple choice:
QUESTION: What was a key contribution to the dominance of the family-run small business
in 1840? ✓✓Correct Answer: b
a) Factories
b) Infrastructure
c) Raw Materials
d) Management
e) Laws
QUESTION: Matchmakers between manufacturers and sellers are called: ✓✓Correct
Answer: c
a) Agents
b) Factors
c) Brokers
d) Merchants
e) None of the Above
QUESTION: What significant transportation event brought about the first significant growth
of the Great Lakes region? ✓✓Correct Answer: c
a) Harnessing of the steam engine
b) Invention of the screw propeller
c) Opening of the Erie Canal
d) Integration of railway system
e) Invention of the railway system
Page 1 of 59
,QUESTION: What is throughput? ✓✓Correct Answer: a
a) The movement of inputs and outputs through a production process
b) Assets that assist in the production or distribution of goods and services
c) A condition that determines the horizontal and vertical boundaries of business firms
d) An investment in the acquisition of raw materials
e) The amount of time for a good to travel between metropolitan areas
QUESTION: What mode of long-distance communication first laid the groundwork for
today's modern communication forms? ✓✓Correct Answer: d
a) U.S. Postal Service
b) Private mail service
c) Telegraph
d) Telephone
e) Railroad
QUESTION: What was the major role of private banks in the early 1800s? ✓✓Correct
Answer: b
a) Serve as an institution for deposits
b) Issue credit
c) Reduce the risk of price fluctuation
d) Create futures markets
e) Sell stocks
QUESTION: What was one of the first plant/factory types to use the "American System" of
manufacturing? ✓✓Correct Answer: a
a) Firearms
b) Steel
c) Oil
d) Automobiles
Page 2 of 59
,e) Chemicals
QUESTION: What economics game theory concept is demonstrated by the Erie Canal public
works project? ✓✓Correct Answer: e
a) Nash equilibrium
b) Lock-in
c) Backwards induction
d) Fair division
e) Prisoner's dilemma
QUESTION: What was the most significant development to the evolution of business circa
1910? ✓✓Correct Answer: d
a) Railroad integration
b) Telegraph communication expansion
c) Banking and accounting standard practices
d) Mass-production technology
e) Advent of steam technology in railroads and shipping
QUESTION: Which of the following led to overbuilding of railroads in the 1860's and 1870's?
✓✓Correct Answer: c
a) Reduction of taxes on railroads by the federal government
b) The success of railroads in Europe
c) The availability of financing due to public optimism
d) The low cost of labor to construct railroads
e) Increases in regulated freight rates by the Interstate commerce Commission
QUESTION: What does it mean for a manufacturing firm to vertically integrate? ✓✓Correct
Answer: c
a) Expand using established product technologies to offer a wider variety of products
Page 3 of 59
, b) Reorganize management into semi-autonomous divisions
c) Produce raw materials and distribute finished goods on their own
d) Geographic distance between buyers and sellers
e) Use management consultants to optimize processes
QUESTION: What caused railway transportation to remain the primary transportation
source over trucking until World War II? ✓✓Correct Answer: a
a) The country lacked of an interstate highway system
b) Rail consolidation was more extensive
c) Rail was faster, safer and more reliable
d) Railroads could carry goods a further distance
e) Companies preferred rail transportation for their goods
QUESTION: What form of communication was integral to the growth of multistory
headquarter buildings? ✓✓Correct Answer: c
a) Telegraph
b) Mail
c) Telephone
d) Morse code
e) Intercom
QUESTION: What caused the market conditions facing the telephone to be uncertain until
the 1880's? ✓✓Correct Answer: a
a) Patent conflicts
b) Technology problems due to unstable electricity supplies
c) Dissimilar technologies limiting interconnections between cities
d) Different state laws limiting interstate expansion
e) The high cost fo some components needed to manufacture telephones
Page 4 of 59
David Dranove |Questions and Answers
2024/2025 |Already Graded A+
Multiple choice:
QUESTION: What was a key contribution to the dominance of the family-run small business
in 1840? ✓✓Correct Answer: b
a) Factories
b) Infrastructure
c) Raw Materials
d) Management
e) Laws
QUESTION: Matchmakers between manufacturers and sellers are called: ✓✓Correct
Answer: c
a) Agents
b) Factors
c) Brokers
d) Merchants
e) None of the Above
QUESTION: What significant transportation event brought about the first significant growth
of the Great Lakes region? ✓✓Correct Answer: c
a) Harnessing of the steam engine
b) Invention of the screw propeller
c) Opening of the Erie Canal
d) Integration of railway system
e) Invention of the railway system
Page 1 of 59
,QUESTION: What is throughput? ✓✓Correct Answer: a
a) The movement of inputs and outputs through a production process
b) Assets that assist in the production or distribution of goods and services
c) A condition that determines the horizontal and vertical boundaries of business firms
d) An investment in the acquisition of raw materials
e) The amount of time for a good to travel between metropolitan areas
QUESTION: What mode of long-distance communication first laid the groundwork for
today's modern communication forms? ✓✓Correct Answer: d
a) U.S. Postal Service
b) Private mail service
c) Telegraph
d) Telephone
e) Railroad
QUESTION: What was the major role of private banks in the early 1800s? ✓✓Correct
Answer: b
a) Serve as an institution for deposits
b) Issue credit
c) Reduce the risk of price fluctuation
d) Create futures markets
e) Sell stocks
QUESTION: What was one of the first plant/factory types to use the "American System" of
manufacturing? ✓✓Correct Answer: a
a) Firearms
b) Steel
c) Oil
d) Automobiles
Page 2 of 59
,e) Chemicals
QUESTION: What economics game theory concept is demonstrated by the Erie Canal public
works project? ✓✓Correct Answer: e
a) Nash equilibrium
b) Lock-in
c) Backwards induction
d) Fair division
e) Prisoner's dilemma
QUESTION: What was the most significant development to the evolution of business circa
1910? ✓✓Correct Answer: d
a) Railroad integration
b) Telegraph communication expansion
c) Banking and accounting standard practices
d) Mass-production technology
e) Advent of steam technology in railroads and shipping
QUESTION: Which of the following led to overbuilding of railroads in the 1860's and 1870's?
✓✓Correct Answer: c
a) Reduction of taxes on railroads by the federal government
b) The success of railroads in Europe
c) The availability of financing due to public optimism
d) The low cost of labor to construct railroads
e) Increases in regulated freight rates by the Interstate commerce Commission
QUESTION: What does it mean for a manufacturing firm to vertically integrate? ✓✓Correct
Answer: c
a) Expand using established product technologies to offer a wider variety of products
Page 3 of 59
, b) Reorganize management into semi-autonomous divisions
c) Produce raw materials and distribute finished goods on their own
d) Geographic distance between buyers and sellers
e) Use management consultants to optimize processes
QUESTION: What caused railway transportation to remain the primary transportation
source over trucking until World War II? ✓✓Correct Answer: a
a) The country lacked of an interstate highway system
b) Rail consolidation was more extensive
c) Rail was faster, safer and more reliable
d) Railroads could carry goods a further distance
e) Companies preferred rail transportation for their goods
QUESTION: What form of communication was integral to the growth of multistory
headquarter buildings? ✓✓Correct Answer: c
a) Telegraph
b) Mail
c) Telephone
d) Morse code
e) Intercom
QUESTION: What caused the market conditions facing the telephone to be uncertain until
the 1880's? ✓✓Correct Answer: a
a) Patent conflicts
b) Technology problems due to unstable electricity supplies
c) Dissimilar technologies limiting interconnections between cities
d) Different state laws limiting interstate expansion
e) The high cost fo some components needed to manufacture telephones
Page 4 of 59
