2nd Quarter Applied Economics Quiz

Which of the following is NOT part of the microenvironment?

• Suppliers

• Competitors

• Economic conditions

• Customers

Which of the following factors is part of the macroeconomic environment?

• Employees

• Technological changes

• Distributors

• Customers

Which macroeconomic factor refers to changes in government policies and regulations?

• Social environment

• Political environment

• Economic environment

• Legal environment

In a microenvironment, suppliers are crucial because they provide:

• Labor

• Raw materials

• Policies

• Investments

Demographic factors belong to which type of environment?

• Microenvironment

• Macro environment

• Internal environment

• Competitor environment

Which of the following is NOT one of Porter's Five Forces?

• Threat of new entrants

• Bargaining power of suppliers

• Competitive rivalry

• Government regulation

High buyer power typically results in:

• Higher industry profits

• Lower industry profitability

• Reduced product innovation

• Increased supplier prices

The threat of substitutes is highest when:

• There are few substitute products available

• Substitute products are cheaper and of similar quality

• Switching costs for consumers are high

• Substitute products are difficult to find

The bargaining power of suppliers is strong when:

• There are many alternative suppliers available

• Suppliers are highly concentrated

• Suppliers have little control over pricing

• Substitute inputs are widely available

A highly competitive industry is characterized by:

• Many competitors offering undifferentiated products

• Low entry barriers

• Few competitors

• Low customer power