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| Section | Objectives |
|---|---|
| Competency 3: Economic Decision-Making by Firms and Customers | - Firm Behavior Under Different Market Structures (Perfect Competition, Monopoly, Oligopoly) - Consumer Behavior (Budget Constraint, Indifference Curves) |
| Competency 2: Political and Economic Forces | - Market Economy vs. Command Economy - Property Rights and the Rule of Law |
| Key Topics Across All Competencies | - Currency Appreciation and Depreciation - Foreign Direct Investment (FDI) Impacts - Global Business Strategies and Porter's Framework - Supply and Demand Shifts - Elastic vs. Inelastic Goods - International Trade Policies (Tariffs, Quotas) |
| Competency 1: International Trade and Currency Exchange | - Introduction to International Trade Theories - Impact of Interest Rates on Financial Flows and Exchange Rates - Currency Exchange Rate Determination |
1. What is one characteristic of a market surplus?
A) There is upward pressure on price
B) Quantity supplied exceeds quantity demanded
C) Quantity demanded exceeds quantity supplied
D) Price is below equilibrium
2. What are examples of equity modes of entry? (Choose THREE.)
A) Licensing
B) Franchising
C) Acquisitions
D) Greenfield investments
E) Strategic alliances
3. Which statement about Federal Reserve lending to banks is true?
A) The discount rate is changed annually.
B) Fed lending to banks follows an overall uptrend.
C) Banks pay the discount rate when borrowing funds from the Fed.
D) Banks set consumer interest rates at the discount rate.
4. When is it best for a firm to decrease production?
A) When the average variable cost is less than the price of a unit after a short-term stop.
B) When total revenue is greater than total cost.
C) When marginal cost is greater than marginal revenue.
D) When the price of a unit covers the average variable cost after a short-term stop.
5. When is it best for a firm to restart production?
A) When total variable costs are less than total revenue after a short-term stop
B) When total cost is greater than total revenue
C) When total revenue is less than total cost
D) When marginal cost is greater than marginal revenue
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C,D,E | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: A |
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