Semester 1 Practice Exam #3

Front

What kind of management structure is it when a CEO makes all the big decisions without much input from her team?

Back

Hierarchical Structure

Answer explanation

In a Hierarchical Structure, decision-making flows from the top down, with upper management making decisions and lower levels having minimal input. This contrasts with Flat or Matrix Structures, which encourage more collaboration.

Front

Imagine you're on a board of directors with Noah, Jackson, and Abigail. What exciting role do you all get to play?

Back

Making decisions on issues

Answer explanation

The board of directors is primarily responsible for making decisions on key issues affecting the organization, such as strategic direction and governance, making 'Making decisions on issues' the correct choice.

Front

Imagine you're in a communication class with Nora, Lily, and Maya. Which of the following is NOT a form of communication? Written, Laissez-faire, Verbal and nonverbal, Listening skills

Back

Laissez-faire

Answer explanation

Laissez-faire refers to a hands-off approach in management or decision-making, not a form of communication. In contrast, written, verbal, nonverbal communication, and listening skills are all active forms of communication.

Front

Which of the following is NOT a phase of the business cycle?
Contraction, Expansion, Deprived, Peak

Back

Deprived

Answer explanation

The business cycle consists of four main phases: contraction, expansion, peak, and trough. 'Deprived' is not a recognized phase of the business cycle, making it the correct answer.

Front

Which phase of the business cycle is like reaching the highest peak of the ride, where the excitement and economic activity are at their maximum?

Back

Peak

Answer explanation

The 'Peak' phase of the business cycle is the highest point of economic activity, where growth reaches its maximum before transitioning into a downturn. This distinguishes it from 'Expansion', 'Recession', and 'Trough' phases.

Front

Imagine Oliver, Daniel, and Rohan are running a lemonade stand. Which of the following best describes how they can measure their productivity in economics? The total profit made by their lemonade stand, The number of lemonade cups produced, The efficiency of resource use in producing lemonade and serving customers, The total revenue generated by selling lemonade

Back

The efficiency of resource use in producing lemonade and serving customers

Answer explanation

Productivity in economics refers to the efficiency of resource use in producing goods and services. It measures how effectively inputs are converted into outputs, making this choice the most accurate definition.

Front

What is the mystical economic phenomenon called where prices of everything from unicorn rides to dragon feed keep rising?

Back

Inflation

Answer explanation

A general increase in the cost of goods and services over time is known as inflation. It reflects the decrease in purchasing power of money, making inflation the correct answer.

Front

Imagine you're on an adventure with Ethan, Scarlett, and Avery, exploring the 7-Step Guide to Ethical Decision Making. Which step encourages you to gather all the treasure, I mean, relevant information?

Back

Step 3

Answer explanation

Step 3 in the 7-Step Guide to Ethical Decision Making emphasizes the importance of gathering relevant information to make informed decisions. This step ensures that all necessary facts are considered before proceeding.

Front

What business management structure is MOST likely to use cross-functional teams?

Back

Flat (Horizontal structure)

Answer explanation

A flat (horizontal) structure promotes collaboration across departments, making it ideal for cross-functional teams. Unlike hierarchical or top-down structures, it encourages communication and teamwork between different areas of the organization.

Front

What does inflation measure in a magical economy where prices of goods and services are like balloons?

Back

Increase in the cost of goods and services

Answer explanation

Inflation measures the increase in the cost of goods and services in an economy. It indicates how much prices are rising over time, affecting purchasing power.