WorksheetsInternational Business – Muhammad Ghalih
Total questions: 14
Worksheet time: 14mins
What is not one of the “principles of economics” formulated by Gregory Mankiw?
People don't use rationality in the decision-making process.
People face trade-offs.
Rational people think at the margin.
The cost of something is what you give up to get it.
What does the classic trade-off example between “guns and butter” say?
Every day articles (butter) will always be cheaper than defense goods (guns).
Whereas the price of guns will always stay relatively constant, the price of butter will vary.
If society spends more on national defense (guns), then it will have less to spend on social programs (butter).
When the price of butter rises, there is a high probability that the price of guns will rise as well.
What it the “opportunity cost”?
The opportunity cost of an item is the current market price in dollars.
The opportunity cost of an item is whatever you give up to get that item.
The opportunity cost of an item is the cost of all resources that were necessary to produce it.
The opportunity cost of an item is the difference between the current market price and production costs.
Which statement (according to Mankiw) is true about governmental actions?
Governments can sometimes improve market outcomes.
Governments can never improve market outcomes.
Governments can always improve market outcomes.
None of the given answers is correct.
Which metaphor by Adam Smith describes social well-being resulting from individual actions?
The "invisible price" concept.
The "invisible bowl" concept.
The "invisible market" concept.
The "invisible hand" concept.
What is Microeconomics and Macroeconomics about?
Microeconomics is the study of small companies and Macroeconomics is the study of large companies.
Microeconomics is the study of small economic units and Macroeconomics looks at the way nations allocate resources.
Microeconomics focuses on individuals and Macroeconomics focuses at companies.
Microeconomics deals with small transactions and Macroeconomics is the study of large transaction processes.
What does the “law of supply and demand” state?
Prices are set by the intersection of the supply and the demand.
Demand rises as the price of a product falls and demand decreases as prices rise.
The higher the price, the more of a product or service that will be offered.
All products and services have different degrees of price elasticity.
What is true about most economies today?
The majority of economies that we see today are "mixed economies".
The majority of economies that we see today are "pure competition economies".
The majority of economies that we see today are "monopolistic competition economies".
The majority of economies that we see today are "planned economies".
What is the second stage in the “business cycle” model?
Depression.
Recovery.
Boom.
Recession.
What are good ways to measure an economic’s productivity?
Gross Domestic Product (GDP).
Consumer Price Index (CPI).
Income.
All three listed answers are correct.
What is “Hyperinflation”?
A period characterized by rapidly falling exports.
A period characterized by rapidly falling prices.
A period characterized by rapidly rising prices.
A period characterized by rapidly rising exports.
What is not a category that has been created to characterize an economy’s state of unemployment?
Seasonal unemployment.
Robust unemployment.
Frictional unemployment.
Structural unemployment.
What is the first step in a “country analysis”?
Analyzing a Country’s Context.
Making a Prediction.
Identifying the Country’s Strategy.
Analyzing the Past Performance.
How is a partnership called, when cooperating firms create an independent firm in which they both invest?
Franchising.
Licensing.
Exporting.
Joint Venture.
