111-123

Increases in unemployment, reduced demand, falling household incomes and low business confidence and investment are associated most strongly with which of the following?

• High interest rates

• Increase in the money supply

• Recession

• A budget deficit

Equilibrium' is the selling price above which the number of units demanded by the market starts to decline

• True

• False

Porter's five forces model identifies external factors that determine the potential profitability and therefore attractiveness of a particular industry. Which of the following is one of these forces?

• Bargaining power of buyers

• Government regulation of the industry

• Fiscal policy

• Technological innovation

An increasingly high rate of unemployment of country A may lead to a decrease in government spending on social security

• True

• False

Which of the following is the name given to unemployment which is the result of aggregate demand in the economy being too small to create employment opportunities for all those willing, and able to work

• Structural unemployment

• Cyclical unemployment

• Frictional unemployment

• Real wage unemployment

Hofstede looked for national differences in an attempt to find aspects of culture that might influence business behavior. Which of the following is one of Hofstede's key dimensions of national differences?

• Position-Power

• Uncertainty avoidance

• Work-relaxation

• Task-people

F operates in a market where it has only two major rivals - each of whom is roughly the same size as F. What type of market is F operating in?

• Oligopoly

• Monopolistic competition

If golf clubs and golf balls are complements, an increase in the price of golf clubs will decrease the demand for golf balls.

• True

• False

Which of the following orientations places the customer at the center of organizational activity?

• Sales orientation

• Production orientation

• Marketing orientation

• Product orientation