MCQOPTIONS
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MCQOPTIONS
This section includes 20 Mcqs, each offering curated multiple-choice questions to sharpen your Economics Mcqs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
When firm build in Organizational slack they do this in order to ? |
| A. | cope with unforeseen changes |
| B. | maximize growth. |
| C. | minimize conflict within the firm |
| D. | both options one and three |
| Answer» E. | |
| 2. |
Behavioral theories of the firm concentrate on the _______ interests of _______? |
| A. | common; different parts of the firm |
| B. | common; mangers |
| C. | conflicting; managers |
| D. | conflicting; different parts of the firm |
| Answer» E. | |
| 3. |
The merger of two clothing firms would be a ____ merger? |
| A. | horizontal |
| B. | vertical |
| C. | homogeneous |
| D. | conglomerate |
| Answer» B. vertical | |
| 4. |
Identify below those who are not stakeholders in a company ? |
| A. | Owners |
| B. | Customers |
| C. | Employees |
| D. | None of the above |
| Answer» E. | |
| 5. |
The merger of fiber producer and a clothing firm would be _____ merger? |
| A. | horizontal |
| B. | vertical |
| C. | conglomerate |
| D. | homogeneous |
| Answer» C. conglomerate | |
| 6. |
Firms that engage in satisficing behavior are likely to be ? |
| A. | Like other firms in their industry. |
| B. | growth maximisers. |
| C. | leading firms in their industry |
| D. | unlike other firms in their industry |
| Answer» B. growth maximisers. | |
| 7. |
Which of the following is NOT a common reason for a merger? |
| A. | To increase competition |
| B. | To reduce uncertainty |
| C. | To achieve faster growth |
| D. | To achieve economies of scale |
| Answer» B. To reduce uncertainty | |
| 8. |
Sales maximization is likely to take place in markets that are ? |
| A. | contestable |
| B. | perfectly competitive |
| C. | oligopolistic |
| D. | export-oriented |
| Answer» D. export-oriented | |
| 9. |
Galbraith’s idea that firms are controlled by a technostructure supports _________ theories? |
| A. | Williamson’s |
| B. | classical economic |
| C. | Marxist |
| D. | monetarist |
| Answer» B. classical economic | |
| 10. |
If firms satisfice this means that ? |
| A. | managers need to be paid enough to stop them leaving the company |
| B. | objectives such as profit are not maximized |
| C. | short-run profits are maximized |
| D. | long-run profits are maximized |
| Answer» C. short-run profits are maximized | |
| 11. |
Fear to take-overs will lead firms to maximize ? |
| A. | growth. |
| B. | sales revenue |
| C. | managers utility |
| D. | profits. |
| Answer» E. | |
| 12. |
The merger of a clothing firm and a software producer would be a _______ merger? |
| A. | horizontal |
| B. | vertical |
| C. | conglomerate |
| D. | homogeneous |
| Answer» D. homogeneous | |
| 13. |
A sale maximizing firm will produce where ? |
| A. | AR minus AC is maximized |
| B. | MC = MR |
| C. | quantity sold is maximized |
| D. | sales revenue is maximized |
| Answer» E. | |
| 14. |
Growth maximization is the same as ? |
| A. | sales revenue maximization |
| B. | maximization the growth of sales revenue. |
| C. | Sales maximization |
| D. | long-run profit maximization. |
| Answer» C. Sales maximization | |
| 15. |
Public limited companies may not maximize their profits because ? |
| A. | they are afraid of encouraging takeovers. |
| B. | shareholders have little control over managers. |
| C. | shareholders want higher dividends. |
| D. | both the first and third option. |
| Answer» C. shareholders want higher dividends. | |
| 16. |
The divorce of ownership and control tends to occur in ? |
| A. | sole proprietors |
| B. | partnerships |
| C. | public limited companies |
| D. | monopolies |
| Answer» D. monopolies | |
| 17. |
A firm may be unable to maximize profits because it ? |
| A. | does not know its MC and MR |
| B. | has too much information |
| C. | has too little information |
| D. | The first and third option |
| Answer» E. | |
| 18. |
Williamson suggests that managers might NOT try to achieve ? |
| A. | respect of other managers. |
| B. | maximum profits. |
| C. | job security |
| D. | a large number of subordinates |
| Answer» C. job security | |
| 19. |
The divorce of owner ship and control causes a problem usually referred to by economists as ? |
| A. | profit myopia |
| B. | principal-agent problem. |
| C. | merger mania. |
| D. | moral hazard |
| Answer» C. merger mania. | |
| 20. |
The traditional profit-maximizing theory of the firm has been criticized by some economists because ? |
| A. | firms do not know how to maximize profits. |
| B. | firms have other aims |
| C. | it does not explain monopolistic competition |
| D. | Both the first and second option |
| Answer» E. | |