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| Section | Objectives |
|---|---|
| Managerial Economic Decision-Making | - Risk and uncertainty in global markets - Cost-benefit analysis in business contexts |
| Foundations of Economics | - Market systems and economic models - Scarcity, opportunity cost, and economic reasoning |
| Global Economics | - Exchange rates and currency systems - Global economic institutions and trade policy - International trade and comparative advantage |
| Macroeconomic Environment | - Fiscal and monetary policy - GDP, inflation, and unemployment |
| Microeconomics for Managers | - Market structures and competition - Elasticity and pricing decisions - Supply and demand analysis |
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질문 # 68
Which term best describes a market structure of limited competition in which the market is shared by a small number of sellers?
정답：D
설명：
In Global Economics for Managers , an oligopoly is defined as a market structure characterized by limited competition in which a small number of sellers dominate the market , making option C the correct answer. These firms collectively control a large share of total market output, and each firm's actions significantly influence the behavior and profitability of the others.
Oligopolistic markets are common in industries with high barriers to entry, such as automobiles, airlines, telecommunications, and energy. Barriers may include economies of scale, high capital requirements, technological advantages, or government regulation. Because only a few firms operate in the market, strategic decision making becomes critical.
Option A, monopoly, involves a single seller. Option B, monopolistic competition, includes many sellers offering differentiated products. Option D, perfect competition, involves many sellers with no market power.
Global Economics for Managers emphasizes that oligopolies are marked by strategic interaction, where firms must anticipate competitors' reactions when setting prices, output, advertising, or investment levels. This interdependence distinguishes oligopoly from other market structures.
Thus, option C accurately describes a market structure with limited competition and a small number of sellers.
질문 # 69
Which methods does the Federal Reserve use to alter reserve quantities? Choose three answers.
정답：A,D,F
설명：
The Federal Reserve alters bank reserve quantities through monetary policy tools such as changing the discount rate and conducting open market operations. Option A is correct because raising the discount rate makes borrowing from the Fed more expensive, which can reduce bank reserves and lending. Option B is correct because buying bonds injects reserves into the banking system; the Fed pays for bonds, increasing bank reserves. Option E is correct because selling bonds removes reserves from the banking system as banks and investors pay the Fed. Raising inflation is not a direct Fed operating tool. Selling stock shares is not how the Fed manages reserves. Raising income tax rates is fiscal policy controlled by government taxation authorities, not the Federal Reserve's reserve-management tool.
질문 # 70
Which entrant is able to erect significant barriers for other entrants?
정답：A
설명：
InGlobal Economics for Managers, afirst moveris a firm that enters a market early and is often able toerect significant barriers to entry, making option B correct.
First movers can secure scarce resources, establish strong brand recognition, achieve economies of scale, and set technological or industry standards. These advantages make it difficult for later entrants to compete effectively.
Late movers benefit from reduced uncertainty but rarely control key assets. Contenders and dodgers are strategic responses to multinational enterprises, not timing-based entry categories.
Therefore, option B correctly identifies the entrant most capable of erecting significant entry barriers.
질문 # 71
What are characteristics of monopolistic competition? (Choose THREE.)
정답：C,D,E
설명：
InGlobal Economics for Managers,monopolistic competitionis characterized bymany sellers,product differentiation, andfree entry and exit, making options A, B, and C correct.
Firms sell products that are similar but not identical, allowing them some degree of pricing power. Examples include restaurants, clothing brands, and personal services. Because entry is relatively easy, economic profits tend to be eliminated in the long run.
Options D and E describe monopoly or perfect competition, not monopolistic competition.
Thus, A, B, and C correctly describe monopolistic competition.
질문 # 72
What is a key feature of an oligopoly?
정답：C
설명：
InGlobal Economics for Managers, oligopolies are often modeled as aprisoner's dilemma, making option B correct.
Firms face incentives to cooperate for mutual gain but also incentives to cheat to maximize individual profit.
This tension explains price rigidity, collusion instability, and strategic behavior.
Other options describe competitive markets or are not universally true.
Thus, option B is correct.
질문 # 73
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