2011 Midterm MCQ.pdf

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Management (MGT)
Chris Bovaird

University Of Toronto at Scarborough MGTA03 - Introduction to Management I Mid-Term Test – March 12, 2011 MULTIPLE CHOICE QUESTIONS BOOK – VERSION 1 Family Given Name Name (Please print NEATLY) Student Number INSTRUCTIONS 1. On the SCANTRON answer sheet: PRINT your family name, PRINT your given name PRINT your student number 2. On the SCANTRON answer sheet fill in all the appropriate bubbles corresponding to your name, fill in all the appropriate bubbles corresponding to your student number 3. Instructions 1 and 2 (above) are an integral part of the examination. Failure to comply with these simple instructions causes additional work, delay and confusion. If you fail to complete the relevant sections of the SCANTRON sheet correctly and fully, you will have 5 marks deducted from your grade on this exam! 4. When recording your answers on the SCANTRON sheet, make sure you: a) Use a pencil b) Fill in the SCANTRON bubbles neatly and completely c) Erase any changes as completely as possible d) Be very careful to place each answer in the correct space 5. You have 90 minutes to write the exam. This booklet consists of 44 multiple-choice questions. MGTA03 – Midterm Test – March 12, 2011 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is the version of the exam you are writing? (Correct Answer is A) a) Version 1 b) Version 2 2) Which one of the following is not a characteristic of an oligopoly? a) great product differentiation b) prices differ greatly c) few sellers d) many buyers 3) Of the following, which is a way in which monopolistic competition differs from perfect competition? a) There are more sellers in a market characterized by monopolistic competition. b) It is easier for sellers to enter a market/industry characterized by monopolistic competition. c) In a market characterized by monopolistic competition, a few firms have some control over price. d) None of the above. 4) Entrepreneurs are important because they: a) provide all of the capital to start new businesses b) assemble and organise the resources to start new businesses c) both a and b are true. d) neither a nor b is true. 5) The price of cooking oil rises 5%. Tim Hortons then raises the price of its donuts by 9%. At the same time, the Highland Creek Bakery raises the price of its donuts by 5%. This kind of pricing strategy would suggest these businesses are engaged in: a) perfect competition b) a monopoly c) an oligopoly d) monopolistic competition Version 1 Page 2 of 11 MGTA03 – Midterm Test – March 12, 2011 6) Labour includes: a) all the workers involved with the business b) only workers who do work directly to product or service c) only people who are not managers d) only employees who must be paid 7) When is an industry likely to be dominated by small business firms? a) where a lot of resources are needed b) where few resources are needed c) where machine, materials, employees, and money are needed d) where considerable resources, a distribution network, and advertising are needed 8) Mario's Pizzeria sells only two kind of pizza: plain and all-dressed. Last year, Mario's Pizzeria sold 2,000 all-dressed pizzas, selling them for $10 each. Mario's sold 10,000 plain pizzas at $5 each. The cost of the ingredients, the box, and all of the electricity and utilities to make the pizzas came to $20,000. In addition, Mario paid $10,000 rent for the store. Finally, Mario paid a total of $10,000 to a couple of students who worked part time, helping out on busy Friday and Saturday nights. Mario paid himself no salary, but took home all of the profits. Last year, Mario made a profit of a) $40,000 b) $30,000 c) $60,000 d) loss of -$10,000 9) This year, Mario Pizzeria decided to reduce the price of its all dressed pizza from $10 down to $8. Mario thought that this might increase the volume of sales. He was correct. The lower price increased demand for all-dressed pizzas from 2,000 to 3,000 during the year. The extra pizzas meant that Mario spent an additional $2,000 to make the additional pizzas. His rent and the cost of employing the two part time workers did not change. Since Mario lives off of the profit from his business, the decision to lower the price of his pizzas was: a) a good idea – the business made a larger profit. b) a bad idea – the business made a lower profit. c) neither a good nor bad idea – the profit stayed the same. d) we don't have enough information to know. 10) Which of the following is not a characteristic of a typical entrepreneur? a) Preference for taking risks. b) Desire for responsibility. c) Desire for immediate feedback. d) Confidence in their ability to succeed. Version 1 Page 3 of 11 MGTA03 – Midterm Test – March 12, 2011 11) The primary motivating force behind entrepreneurs is: a) money. b) fame. c) achievement. d) recognition. 12) A factor that contributes directly to improving labour as a factor of production is: a) creation of more part-time jobs b) programs that decrease unemployment c) better education for more of the population d) programs which lower the rate of inflation 13) Which of the following would be included in the gross domestic product of Canada a) the profits earned by a Canadian-owned automobile plant in Brazil b) the wages paid to Peruvian workers producing coffee for a Canadian company c) the wages paid to Brazilian workers producing coffee for sale in Canada d) the profits earned by a Brazilian coffee company operating in Canada 14) The ________ rate is the percentage change in prices from one year to the next. a) inflation b) RPI c) CPI d) exchange 15) Inflation rates in Africa for 2007 covered a wide range. They run from -8.8% in Chad to 10,453% in Zimbabwe. This means: a) What cost $1 U.S. in Zimbabwe a year ago now costs $10,453 U.S. b) Cash payments in the local currency in Chad must be spent immediately to be of any value c) The standard of living in rose in Chad in 2007 d) Workers in Zimbabwe would prefer to be paid in U.S. dollars (or any other currency) rather than in their own currency 16) The standard of living increases when: a) the real growth rate of GDP is higher than the nominal growth rate of GDP b) the real growth rate of GDP exceeds the population growth rate c) the rate of inflation is lower than the real growth rate of GDP d) the real growth rate of GDP is less than the growth rate of the trade deficit Version 1 Page 4 of 11 MGTA03 – Midterm Test – March 12, 2011 17) Which of the following did not occur as result of the recent (2008-2009) recession in the United States? a) GDP fell b) unemployment rose c) GDP per capita fell d) interest rates rose e) government deficits increased 18) Why is it difficult to compare the CPI for 1919 with the CPI for 2009? a) the First World War led to large price increases that distort the 1919 CPI b) the basket of items in 1919 is very different from the basket in 2009 c) the base year has changed since 1919 d) Canadians are wealthier in 2009 than they were in 1919 Question Omitted 19) How do most people start a new business? a) start it themselves b) buy out the other partner d) buy an existing business e) inherit the business 20) The extent to which people believe either internal or external events determine outcomes is called: a) external/internal orientation. b) locus of control. c) an interdependent sense of self. d) an independent sense of self. 21) The number of Canadian employed by small businesses is approximately: a) 10% of the total workforce b) 20% of the total workforce c) 50% of the total workforce d) 98% of the total workforce Version 1 Page 5 of 11 MGTA03 – Midterm Test – March 12, 2011 22) Why is China 4th in overall GDP but 109th in GDP per capita? a) There are many people living in China b) The Chinese are not very innovative c) Many foreign firms have invested in China and repatriate profits d) The Chinese lack modern labour protections and safety standards 23) Unemployment is the level of joblessness among a) people over the age of 18 and under the age of 65 actively seeking work in a given economy b) people over the age of 18 and under the age of 65 in a given economy. c) people over the age of 18 and under the age of 65 able to work in a given economy. d) people actively seeking work within a given economy. 24) Statistics Canada has published the following figures for the CPI: Year 2008 2009 Toronto 110.8 113.1 Montreal 110.3 112.5 From these figures, we can conclude: a) Prices in Toronto are higher than in Montreal b) Consumers in Montreal purchased slightly less in 2009 than those in Toronto c) From 2008 to 2009, prices rose by about 2% in both Toronto and Montreal d) It is more expensive to live in Montreal than in Toronto 25) Socialism is best described as: a) an economy that is free from any regulation or plann
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