AUMGT 323 Exam Questions PDF

A person who monitors the production process and evaluates the productivity of workers is an employee. , Not Selected Correct answer: a manager. a self-proprietor. , Not Selected a shareholder. , Not Selected **Results for question 2.** 2 1 / 1 point The products in a monopolistically co...

A person who monitors the production process and evaluates the productivity of workers is an employee. , Not Selected Correct answer: a manager. a self-proprietor. , Not Selected a shareholder. , Not Selected **Results for question 2.** 2 1 / 1 point The products in a monopolistically competitive industry are homogeneous. , Not Selected uncompetitive. , Not Selected Correct answer: heterogeneous. competitive. , Not Selected **Results for question 3.** 3 1 / 1 point Costs that change as output changes are constant costs. , Not Selected fixed costs. , Not Selected sunk costs. , Not Selected Correct answer: variable costs. **Results for question 4.** 4 1 / 1 point When a manager enters the workplace from time to time to monitor workers, he is using Correct answer: spot checks. a profit-sharing plan. , Not Selected a revenue-sharing plan. , Not Selected a piece-rate payment plan. , Not Selected **Results for question 5.** 5 1 / 1 point Fixed costs exist only in Correct answer: the short run. labor-intensive markets. , Not Selected the long run. , Not Selected capital-intensive markets. , Not Selected **Results for question 6.** 6 1 / 1 point Conglomerate integration Correct answer: improves cash flow by exploiting the cyclical nature of different product lines. reduces the transaction costs of acquitting inputs, improves cash flow by exploiting different product lines, and exploit economies of scope by merging similar products. , Not Selected reduces the transaction costs of acquiring inputs. , Not Selected exploits economies of scope by merging the production of similar products. , Not Selected **Results for question 7.** 7 1 / 1 point Which of the following is *not* a means of acquiring product and process innovations? Correct answer: mass production of the existing product reverse engineering , Not Selected independent research and development , Not Selected hiring employees of innovating firms , Not Selected **Results for question 8.** 8 1 / 1 point Shirking can take the form of all of the following except Correct answer: working overtime without additional pay. surfing the internet while at work. , Not Selected reading the newspaper while at work. , Not Selected long lunch hours. , Not Selected **Results for question 9.** 9 1 / 1 point Pricing is an aspect of a firm\'s structure. , Not Selected performance. , Not Selected Correct answer: conduct. environment. , Not Selected **Results for question 10.** 10 1 / 1 point Which of the following integration types has the potential problem of increasing the firm\'s market power? conglomerate integration , Not Selected Correct answer: horizontal integration cointegration , Not Selected vertical integration , Not Selected **Results for question 11.** 11 1 / 1 point A drawback of separating ownership from control by creating a firm is synergies of team production. , Not Selected the losses of specialization. , Not Selected increased transaction costs. , Not Selected Correct answer: the principal-agent problem. **Results for question 12.** 12 1 / 1 point An incentive for managers to maximize profits is all of the following except Correct answer: a fixed annual salary. takeovers. , Not Selected performance bonuses. , Not Selected reputation. , Not Selected **Results for question 13.** 13 1 / 1 point Isoquants are normally drawn with a convex shape because inputs are perfectly complementary. , Not Selected Correct answer: inputs are not perfectly substitutable. inputs are not perfectly complementary. , Not Selected inputs are perfectly substitutable. , Not Selected **Results for question 14.** 14 1 / 1 point The Dansby-Willig index measures the potential for a change in production cost. , Not Selected firm\'s profit. , Not Selected Correct answer: social welfare. firm\'s revenue. , Not Selected **Results for question 15.** 15 1 / 1 point Oligopoly differs from monopoly as oligopoly involves free entry, while monopoly involves no free entry. , Not Selected Correct answer: oligopoly involves a few firms, while monopoly involves a single firm. oligopoly involves a few firms, while monopoly involves a single firm, and oligopoly involves free entry, while monopoly involves no free entry. , Not Selected oligopoly does use advertisement, while monopoly does not use advertisement. , Not Selected **Results for question 16.** 16 1 / 1 point The long run is defined as greater than one year. , Not Selected the horizon in which there are both fixed and variable factors of production. , Not Selected the horizon in which there are only fixed factors of production. , Not Selected Correct answer: the horizon in which the manager can adjust all factors of production. **Results for question 17.** 17 1 / 1 point In order for isoquants to have a diminishing marginal rate of substitution, they must be vertical. , Not Selected Correct answer: convex to the origin. L-shaped. , Not Selected straight lines. , Not Selected **Results for question 18.** 18 1 / 1 point The creation of a new product is referred to as independent research and development. , Not Selected process innovation. , Not Selected Correct answer: product innovation. patent disclosure. , Not Selected **Results for question 19.** 19 1 / 1 point The change in total output attributable to the last unit of an input is the total product. , Not Selected average product. , Not Selected marginal return. , Not Selected Correct answer: marginal product. **Results for question 20.** 20 1 / 1 point Shirking can take the form of all of the following except Correct answer: putting forth the maximum effort leaving work early. , Not Selected long lunch hours. , Not Selected sleeping at work. , Not Selected **Results for question 21.** 21 1 / 1 point An industry consists of 25 firms, each with an equal market share. What is the four-firm concentration ratio of this industry? Correct answer: 0.16 0.20 , Not Selected 0.25 , Not Selected 0.12 , Not Selected **Results for question 22.** 22 0 / 1 point When relationship-specific exchange occurs in complex contractual environments, the best way to purchase inputs is through Incorrect answer: long-term contracts. Correct Answer: **vertical integration.** short-term agency agreements. , Not Selected vertical integration. , Not Selected spot markets. , Not Selected **Results for question 23.** 23 1 / 1 point The Dansby-Willig index measures market conduct. , Not Selected Correct answer: performance. structure. , Not Selected behavior. , Not Selected **Results for question 24.** 24 1 / 1 point The short run is defined as the time frame Correct answer: in which there are fixed factors of production. less than three years. , Not Selected less than one year. , Not Selected in which there are no fixed factors of production. , Not Selected **Results for question 25.** 25 1 / 1 point The minimum average cost of producing alternate levels of output, allowing for optimal selection of all variables of production, is defined by the short-run average fixed cost curve. , Not Selected short-run marginal cost curve. , Not Selected long-run marginal cost curve. , Not Selected Correct answer: long-run average total cost curve. **Results for question 26.** 26 1 / 1 point A manager who tries to enhance worker effort by tying workers\' compensation to the profitability of the firm is using revenue sharing. , Not Selected spot checks. , Not Selected Correct answer: profit sharing. piece rates. , Not Selected **Results for question 27.** 27 1 / 1 point Variable factors of production are the inputs that a manager Correct answer: may adjust in order to alter production. may adjust in order to alter sales. , Not Selected cannot adjust in the long run. , Not Selected cannot adjust in the short run. , Not Selected **Results for question 28.** 28 1 / 1 point A negative side of a revenue-sharing plan is that it can be costly if revenues are low. , Not Selected Correct answer: gives no incentive for workers to minimize costs. does not induce hard or better work. , Not Selected can be difficult to manage from an accounting standpoint. , Not Selected **Results for question 29.** 29 1 / 1 point Which of the following is *not* used to measure market structure and performance? Dansby-Willig performance index , Not Selected four-firm concentration ratio , Not Selected Correct answer: advertising sales-ratio HHI (Herfindahl-Hirschman index) , Not Selected **Results for question 30.** 30 1 / 1 point Which of the following integration types aims at reducing transaction costs? cointegration , Not Selected conglomerate integration , Not Selected Correct answer: vertical integration horizontal integration , Not Selected **Results for question 31.** 31 1 / 1 point An agent hired by the owner of productive resources to control the production process is Correct answer: a firm manager. a self-proprietor. , Not Selected a laborer. , Not Selected an assembly worker. , Not Selected **Results for question 32.** 32 1 / 1 point The recipe that defines the maximum amount of output that can be produced with K units of capital and L units of labor is the research and development schedule. , Not Selected technological constraint. , Not Selected total product. , Not Selected Correct answer: production function. **Results for question 33.** 33 1 / 1 point In the absence of worker incentives, Correct answer: there is a natural tendency for workers to not give their maximum effort. workers have little or no control. , Not Selected managers have little or no control. , Not Selected everyone always gives maximum effort. , Not Selected **Results for question 34.** 34 1 / 1 point Which of the following are measures of industry concentration? four-firm concentration ratio and producer surplus , Not Selected Correct answer: Four-firm concentration ratio and HHI index Consumer surplus and producer surplus , Not Selected HHI and consumer surplus , Not Selected **Results for question 35.** 35 1 / 1 point A potential problem with piece-rate plans is that workers will produce a large quantity. , Not Selected Correct answer: workers may stress quantity instead of quality. it is difficult for managers to control. , Not Selected workers have no incentive to work hard. , Not Selected **Results for question 36.** 36 1 / 1 point An example of a job that usually involves a revenue-sharing plan would be all of the following except car salesman. , Not Selected waiters and waitresses. , Not Selected Correct answer: public school teachers. insurance agents. , Not Selected **Results for question 37.** 37 1 / 1 point Costs that are forever lost after they have been paid are fixed costs. , Not Selected production costs. , Not Selected variable costs. , Not Selected Correct answer: sunk costs. **Results for question 38.** 38 1 / 1 point The combinations of inputs that produce a given level of output are depicted by indifference curves. , Not Selected Correct answer: isoquants. budget lines. , Not Selected isocost curves. , Not Selected **Results for question 39.** 39 1 / 1 point Which of the following is *not* a type of integration? vertical mergers , Not Selected Correct answer: mega mergers conglomerate merger , Not Selected horizontal mergers , Not Selected **Results for question 40.** 40 1 / 1 point A relationship-specific exchange occurs when shareholders receive dividends. , Not Selected a partnership is initiated. , Not Selected Correct answer: specialized investments are important. a partnership is dissolved. , Not Selected **Results for question 41.** 41 1 / 1 point A payment plan that induces better worker effort by linking compensation to revenues of the firm is known as piece rate sharing. , Not Selected spot checking. , Not Selected Correct answer: revenue sharing. profit sharing. , Not Selected **Results for question 42.** 42 0 / 1 point Which of the following integration types exploits economies of scope? Incorrect answer: conglomerate integration Correct Answer: **horizontal integration** horizontal integration , Not Selected vertical integration , Not Selected cointegration , Not Selected **Results for question 43.** 43 1 / 1 point Spot markets are an efficient way for the firm to purchase inputs if Correct answer: opportunism is not a problem. profit sharing is used to compensate managers. , Not Selected suppliers engage in hold-up. , Not Selected the supplier needs specialized investment to produce the input. , Not Selected **Results for question 44.** 44 1 / 1 point Changes in the price of an input cause isoquants to become steeper. , Not Selected changes in both the isoquants and isocosts of equal magnitude. , Not Selected Correct answer: slope changes in the isocost line. parallel shifts of the isocost lines. , Not Selected **Results for question 45.** 45 1 / 1 point Monopolistic competition is characterized by no free entry. , Not Selected employing labor from a perfectly competitive labor market. , Not Selected Correct answer: heterogeneous products. large markets. , Not Selected **Results for question 46.** 46 1 / 1 point Which market structure has the most market power? Correct answer: monopoly monopolistic competition , Not Selected oligopoly , Not Selected perfect competition , Not Selected **Results for question 47.** 47 1 / 1 point A firm might choose to produce its own inputs if the exchange environment is not complex. , Not Selected specialized investment is not important. , Not Selected spot markets for the input exist. , Not Selected Correct answer: long-term contracts are costly to write. **Results for question 48.** 48 1 / 1 point Inputs a manager may adjust in order to alter production are Correct answer: variable factors. fixed factors. , Not Selected all factors. , Not Selected all short-run factors. , Not Selected **Results for question 49.** 49 1 / 1 point The absolute value of the slope of the isoquant is the marginal product of capital. , Not Selected value marginal product of labor. , Not Selected marginal rate of substitution. , Not Selected Correct answer: marginal rate of technical substitution. **Results for question 50.** 50 1 / 1 point Which of the following is *not* one class of a market structure? Correct answer: dictatorship monopolistic competition , Not Selected monopoly , Not Selected perfect competition