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1. In a monopoly, which statements are likely true? (Choose TWO.)
A) One seller offers a unique good with no close substitutes
B) Entry is free in the long run
C) Firms are price takers
D) There are barriers to entry into the market
E) Marginal revenue equals price
2. What measures how the quantity demanded of one good responds to a change in the price of another good?
A) Quantity elasticity of demand
B) Equilibrium elasticity of demand
C) Price elasticity of demand
D) Cross-price elasticity of demand
3. What are examples of equity modes of entry? (Choose THREE.)
A) Licensing
B) Franchising
C) Acquisitions
D) Greenfield investments
E) Strategic alliances
4. What is a characteristic of a market economy?
A) Prices are fixed by the government.
B) Factors of production are privately owned.
C) Central planning determines production decisions.
D) Resources are allocated through quotas.
5. Who are the primary and largest participants in the foreign exchange market?
A) Individual currency traders
B) Central banks
C) Multinational manufacturing firms
D) Large international banks
Solutions:
| Question # 1 Answer: A,D | Question # 2 Answer: D | Question # 3 Answer: C,D,E | Question # 4 Answer: B | Question # 5 Answer: D |
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