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| Section | Objectives |
|---|---|
| Foundations of Economics | - Scarcity, opportunity cost, and economic reasoning - Market systems and economic models |
| Global Economics | - Exchange rates and currency systems - Global economic institutions and trade policy - International trade and comparative advantage |
| Managerial Economic Decision-Making | - Risk and uncertainty in global markets - Cost-benefit analysis in business contexts |
| Microeconomics for Managers | - Supply and demand analysis - Market structures and competition - Elasticity and pricing decisions |
| Macroeconomic Environment | - GDP, inflation, and unemployment - Fiscal and monetary policy |
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NEW QUESTION # 46
What are features shared by monopolies and perfect competition? (Choose TWO.)
Answer: E,F
Explanation:
InGlobal Economics for Managers, monopolies and perfectly competitive firms share two important features:
profit maximization at MR = MCand the ability toearn economic profits in the short run, making options E and F correct.
Option E applies universally: all firms maximize profit wheremarginal revenue equals marginal cost, regardless of market structure. This decision rule guides output choices in both monopoly and perfect competition.
Option F is also correct because firms in both structurescan earn economic profits in the short run. In perfect competition, short-run profits attract new entrants, while monopolies may sustain profits longer due to entry barriers.
Options A and B distinguish the two structures. Option C applies only to monopoly. Option D applies only to monopoly, not perfect competition.
Thus, options E and F correctly identify shared features.
NEW QUESTION # 47
What are examples of fixed costs? (Choose TWO.)
Answer: A,D
Explanation:
InGlobal Economics for Managers,fixed costsare costs that do not vary with the level of output in the short run, making optionsC and Dcorrect.
Option C, astate license fee, is fixed because it must be paid regardless of how much output is produced.
Option D,monthly internet service, is also fixed since the cost remains constant even if production rises or falls.
Options A, B, and E arevariable costsbecause they increase as output increases. Sales commissions depend on sales volume, flour usage depends on bread production, and parts costs rise with the number of devices produced.
Understanding fixed costs is essential for break-even analysis and short-run production decisions. Thus, C and D are correct.
NEW QUESTION # 48
Which characteristics are attributed to a democracy? (Choose THREE.)
Answer: A,C,E
Explanation:
InGlobal Economics for Managers, democracies are characterized bycivil liberties, economic freedoms, and relatively lower political risk, making options A, C, and D correct.
Democracies protect freedom of expression and organization, allow domestic and foreign firms to operate, and provide stable institutional environments with predictable rules.
Options B and E describe authoritarian systems, not democracies.
Thus, A, C, and D correctly describe democratic systems.
NEW QUESTION # 49
Which statement is true for a monopoly firm, but not for a competitive firm?
Answer: A
Explanation:
In Global Economics for Managers , a key distinction between monopolies and perfectly competitive firms is the relationship between price and marginal revenue . For a monopoly, marginal revenue is less than price
, making option C correct.
A monopoly faces a downward-sloping demand curve , meaning that to sell an additional unit, the firm must lower the price not only for the marginal unit but also for all previous units sold. As a result, marginal revenue declines faster than price and always lies below the demand curve.
In contrast, a perfectly competitive firm is a price taker . It can sell as much output as it wants at the market price, so marginal revenue equals price.
Options A and B describe competitive firms, not monopolies. Option D is incorrect because monopolies can earn economic profits in the long run due to entry barriers.
Thus, option C correctly identifies a feature unique to monopoly firms.
NEW QUESTION # 50
Which changes increase demand? (Choose TWO.)
Answer: A,D
Explanation:
InGlobal Economics for Managers, demand for a good increases when factors other than its own price change in a favorable direction. Two such changes arean increase in the price of a substituteanda decrease in the price of a complement, making options A and B correct.
When the price of asubstituterises, consumers switch toward the relatively cheaper alternative, increasing demand for the good in question. For example, if the price of coffee increases, demand for tea may rise.
When the price of acomplementfalls, consumers are more likely to purchase both goods together, increasing demand. For instance, a decrease in the price of printers raises demand for printer ink.
Options C and D reduce demand rather than increase it.
Thus, A and B correctly identify changes that increase demand.
NEW QUESTION # 51
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