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| Section | Objectives |
|---|---|
| Topic 1: Microeconomics for Managers | - Supply and demand analysis - Elasticity and pricing decisions - Market structures and competition |
| Topic 2: Macroeconomic Environment | - Fiscal and monetary policy - GDP, inflation, and unemployment |
| Topic 3: Foundations of Economics | - Market systems and economic models - Scarcity, opportunity cost, and economic reasoning |
| Topic 4: Managerial Economic Decision-Making | - Cost-benefit analysis in business contexts - Risk and uncertainty in global markets |
| Topic 5: Global Economics | - Exchange rates and currency systems - International trade and comparative advantage - Global economic institutions and trade policy |
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質問 # 72
What is one of the elements of the Porter Diamond in the theory of national competitive advantage of industries?
正解：A
解説：
InGlobal Economics for Managers, one of the four core elements ofPorter's Diamond Model of National Competitive Advantageisdomestic demand conditions, making option C the correct answer. Michael Porter' s framework explains why certain industries within particular countries achieve international competitiveness, emphasizing the role of the national environment in shaping firm performance.
Domestic demand conditions refer to thenature, size, and sophistication of demand in the home market.
When domestic consumers are demanding, quality-conscious, and forward-looking, firms are pressured to innovate, improve product quality, and adopt advanced production methods. These pressures help firms develop capabilities that later become advantages in international markets. For example, firms accustomed to serving sophisticated domestic buyers are better prepared to compete globally.
Option A is incorrect because firm opportunity costs are a general microeconomic concept and are not part of the Porter Diamond. Option B is incorrect because the model emphasizesdomestic factor conditions, not foreign supply markets. Option D, trade deficits, is a macroeconomic outcome and does not explain the structural sources of competitive advantage within industries.
Global Economics for Managershighlights that Porter's Diamond consists of four interrelated determinants:
factor conditions, domestic demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Among these, domestic demand conditions are particularly important because they influence the direction and pace of innovation. Strong home demand encourages firms to anticipate global trends rather than merely react to them.
For managers, understanding domestic demand conditions helps explain why firms from certain countries dominate specific global industries. Therefore, option C accurately identifies a key element of the Porter Diamond theory.
質問 # 73
What is opportunity cost?
正解：C
解説：
InGlobal Economics for Managers,opportunity costis defined asthe lost potential from pursuing one activity at the expense of another, given the available alternatives, making option B correct. Opportunity cost reflects the value of the next best alternative that is foregone when a decision is made.
This concept is central to economic decision making because resources-such as time, capital, and labor-are scarce. Choosing one option necessarily means giving up another. Opportunity cost includes both monetary and non-monetary factors and applies to individuals, firms, and governments alike.
For firms, opportunity cost may involve using capital for one investment rather than another. For consumers, it may involve spending money on one good instead of saving it or purchasing a different good. Managers must account for opportunity costs to make efficient and rational decisions.
Option A refers only to explicit costs, which are incomplete. Options C and D describe different cost and benefit concepts.
Thus, option B correctly defines opportunity cost.
質問 # 74
What is true about producer surplus?
正解：B
解説：
InGlobal Economics for Managers,producer surplusmeasures thewell-being of sellers, making option B correct.
Producer surplus is the difference between the price producers receive and the minimum price they are willing to accept. It reflects profits plus fixed costs and indicates how much sellers benefit from participating in a market.
Options A and D confuse producer surplus with consumer or total surplus. Option C is incorrect because producer surplus is not total revenue.
Therefore, option B is correct.
質問 # 75
Which company has a natural resource-seeking strategic goal?
正解：A
解説：
In Global Economics for Managers , a natural resource-seeking strategy refers to firms that engage in foreign direct investment to access specific natural resources that are unavailable or costly in their home country. Option C correctly reflects this motive.
Companies in industries such as oil, gas, mining, agriculture, and timber often locate operations where resources are naturally abundant. The primary objective is to secure reliable and cost-effective access to essential inputs for production.
Option A describes a cost-seeking strategy, option B a market-seeking strategy, and option D a strategic asset- seeking strategy.
Thus, option C correctly identifies a natural resource-seeking strategic goal.
質問 # 76
Which goods have a positive cross-price elasticity?
正解：D
解説：
InGlobal Economics for Managers,substitute goodshave apositive cross-price elasticity of demand, making option C correct. Cross-price elasticity measures how the quantity demanded of one good responds to a change in the price of another good.
For substitutes, an increase in the price of one good leads consumers to switch to the alternative, increasing demand for the substitute. This positive relationship results in a positive cross-price elasticity. Examples include tea and coffee or butter and margarine.
Complements have negative cross-price elasticity, normal goods relate to income elasticity, and "shortage goods" is not an elasticity classification.
Thus, option C is correct.
質問 # 77
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