C211 OA Questions And Answers Verified 100% Correct }|Latest Updates|

C211 OA Questions And Answers Verified 100% Correct }|Latest Updates| What is a non-equity mode involving some type of contractual agreement? - ANSWER -Licensing After the Lehman Brothers collapse, the federal Reserve stood ready to lend financial institutions funds. When the Federal reserve did this, it was acting in its role as a lender of last resort. Which type of group has this role? - ANSWER Informal institution What is the comprehensive free-trade settlement among Canada, US, and Mexico, that addresses issues of protecting workers rights, the environment and reducing tariffs and non-tariff trade barriers? - ANSWER -NAFTA What is one of the core propositions underpinning an institution-based view of global business? - ANSWER -If formal constraints are not in place, the informal constraints will guide decision making What is one of the core propositions underpinning an institution-based view of global business? - ANSWER -Managers and corporations make rational decisions within their formal and informal framework Which type of system allows businesses to be privately owned with a strong individualistic profit orientation? - ANSWER -Market Economy Which legal system is based on a religious document and religious teachings? - ANSWER -Theocratic Law Which type of good has well-established property rights? - ANSWER -Private goods Which activity disregards basic property rights? - ANSWER -Students play loud music in the open area between dorms What is one type of economy that uses the market system? - ANSWER -Mixed economy Which kind of outcome was Adam Smith referring to when describing the invisible hand? - ANSWER -Market outcomes What does the value of the marginal product of labor for a perfectly competitive, profit-maximizing firm equal? - ANSWER -Rate What is the change in total cost equal to? - ANSWER -Marginal cost multiplied by change in quantity Which condition must be satisfied for a competitive firm to shut down in a short run - ANSWER -Total variable costs are greater than total revenue What will a competitive firm do in the short run if its average variable cost exceeds price? - ANSWER -It will shut down What is a characteristic of a monopoly's demand curve? - ANSWER -It is the same as the market demand curve - downward sloping Which statement describes a monopoly demand curve? - ANSWER -It is less elastic than a perfectly competitive firms demand curve What is the profit maximization condition for a monopoly? - ANSWER -Where marginal revenue equals marginal cost What is a characteristic of monopolistic competition? - ANSWER -Many firms sell differentiated products How does self-interest influence each prisoner's decision in the prisoner's dilemma? - ANSWER -Both prisoners will likely confess Why is studying the prisoner's dilemma applicable to business? - ANSWER -It demonstrates the value of mapping out a potential strategy given actions of rivals What does an indifference curve illustrate? - ANSWER -The preferences of a consumer What happens to an individual's budget constraint if the budget decreases and prices remain the same? - ANSWER -The budget constraints line shifts parallel inward What happens to the nominal interest rate and the quantity of money if the Federal Reserve increases the reserve requirement? Choose 2 ANSWERs - ANSWER -The interest rate increases The quantity of money decreases What will happen to the equilibrium in the market for a good if demand and supply increase simultaneously? - ANSWER -Equilibrium quantity will always increase What concept measures how much the quantity supplied responds to change in price? - ANSWER -Price elasticity of supply Which elasticity of demand measures how the quantity demanded of one good responds to a change in price of another good? - ANSWER -Cross-price elasticity of demand What is the interest rate on a loan borrowed by banks from the federal reserves? - ANSWER -Discount rate Which target rate would the federal reserve lower in order to stimulate the economy and avoid a recession - ANSWER -The federal funds rate Which action would the federal reserve rate take to expand the money supply and lower the equilibrium interest rate? - ANSWER -Purchase government bonds on the open market What happens when the price of a good increases holding everything else constant? - ANSWER -Consumer surplus decreases Which activity will result in an increase in gross domestic product (GDP) other things being equal? - ANSWER -A law passes making the sale of recreational marijuana legal Which two types of investment are included in gross domestic product (GDP) 2 ANSWERs - ANSWER -Spending to build new factories Spending on consumer durable goods A nation begins applying a tariff on bananas which is imported product -