Int'l Biz Ch02 Quiz

What is the first step in the decision-making process?

• Make a Choice

• Define the Problem

• Review the Decision

• Identify the Alternatives

What is an example of identifying alternatives in decision-making for a business?

• A person choosing a college to attend

• A company reviewing the success of a new product

• A company deciding between different suppliers for raw materials

• A person calculating the per capita GNP of a country

What is a possible solution to the problem of not having enough money for college expenses?

• Apply for scholarships and financial aid

• Delay attending college for a year

• Take out a large loan

• Drop out of college and find a job

How can a company address the need to manufacture more of a successful product?

• Reduce the price of the product

• Ignore the demand for the product

• Stop manufacturing the product

• Increase production capacity

What can a company do to create new interest in a product and increase sales?

• Launch a new marketing campaign

• Discontinue the product

• Reduce the quality of the product

• Increase the price of the product

What is a possible solution to the problem of equipment breakdown affecting sales?

• Reduce the workforce

• Ignore the issue and continue as is

• Invest in better equipment maintenance

• Increase the price of the product

What are the factors of production needed to produce a hamburger and fries?

• Human resources, natural resources

• Natural resources, capital

• Human resources, capital

• Natural resources, human resources, capital

Which economic system allows consumers complete freedom of choice in the marketplace?

• None of the above

• Mixed Economy

• Command Economy

• Market Economy

How does infrastructure affect the economic development of a country?

• It improves transportation and communication

• It decreases the standard of living

• It has no impact on economic development

• It only affects utility systems

What is a potential long term strategy for a company facing a decrease in market share?

• Invest in research and development to innovate

• Decrease the price of the product

• Ignore the market trends

• Discontinue the product