Module 1 quiz
Question 1
The example of Enron shows that:
large incentives are the keys to
getting people moving in a corporation.
business success is possible in a
regulatory environment.
selection of people is the key to
organizational success or failure.
organizational
structure is extremely important in business success.
Question 2
If the technology, the nature of competition, or the
regulatory environment changes in an industry, then:
organizations are created by
random events, just like markets.
a good organizational
architecture is always able to cope with changes.
the
appropriate organizational architecture will change too.
organizational architecture is
able to restore the former market environment.
Question 3
Economics provides a theory to explain:
how managers can cheat and get
away with it.
how a successful business can be
started.
how to
compete in the market.
how
people make choices.
Question 4
Benchmarking means:
copying
from the best so as to become better.
blind copying.
looking at yourself and telling
yourself you are the greatest.
looking at yourself and telling
others what to do.
Question 5
A risk-averse agent:
only
cares about expected payoff.
always prefers a certain payoff
to a risky one.
cares
about expected payoff, as well as the variability of a payoff.
only cares about the variability
of a payoff.
Question 6
If employees conform to the economist’s view of behavior,
managers will be most effective if they can:
influence
the costs and benefits of employee actions.
fire bad employees.
improve employee satisfaction
with the job.
communicate
goals and objectives effectively to their employees.
Question 7
Marginal utility is the:
total amount spent to purchase
one additional unit.
total happiness obtained from a
consumption bundle.
additional
utility obtained by consuming one additional unit.
additional utility obtained by
lowering the price of a good.
Question 8
Assume the market for ceiling fans is perfectly competitive
and currently in equilibrium. If the demand increases while the supply
decreases, then:
Correct Answer
we can
be certain the equilibrium price will increase.
both price and quantity will
decrease.
we can be certain the equilibrium
quantity will increase.
both
price and quantity will increase.
Question 9
Assume the government introduces a $0.50 per gallon tax on
gasoline. Which of the following is true?
The quantity of gasoline sold is
likely to increase.
The
quantity of subway and bus tickets sold is likely to increase.
The quantity supplied by
producers will decrease.
The quantity of cars sold is
likely to increase.
Question 10
According to Ronald Coase, for a free-market economy to work
efficiently, there needs to be:
a well-developed tax code.
an
allocation of private property rights with low transactions costs.
an allocation of private property
rights with high transactions costs.
a low cost of malpractice
insurance.
Question 11
Based on the following diagram if there was a $3.00 price
floor:
there would be a surplus of 30.
the quantity demanded would be 65.
there would be a shortage of 30.
the quantity demanded would be 30.
Question 12
Assume D1 represents the current demand curve for skis.
Which of the following would be likely to cause D1 to shift to D2?
A decrease in the price of skis.
An increase in the price of skis.
An increase in the price of snowboards.
An increase in the price of ski boots and clothing.
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