1. A nation’s economy is considered to be in a recession when
The number of unemployed workers does not decline for three consecutive quarters.
the Chairman of the Federal Reserve makes the distinction.
GDP declines for two consecutive quarters.
All of the above.
2. A recession
hurts all industries, but some more than others.
hurts all industries equally.
may actually help some industries.
None of the above.
3. A recession has negative implications for all industries.
True
False
4. A recession occurs when GDP declines for
one quarter.
two consecutive quarters.
three consecutive quarters.
four consecutive quarters.
5. A recession occurs when GDP declines for four consecutive quarters.
True
False
6. Analysis of the macroenvironment includes an examination of industry forces.
True
False
7. At the global level, the period from World War II to the late 1980s was marked by increased trade protectionism.
True
False
8. Economic forces include such factors as the outcomes of elections, legislation, and judicial court decisions, as well as the decisions rendered by various commissions and agencies at every level of government.
True
False
9. External environmental analysis should first occur from the perspective of government regulators.
True
False
10. Factors such as the growth or decline in GDP and changes in exchange rates are classified as
international forces.
economic forces.
social forces.
None of the above.
11. Firms operating in multiple distinct markets may be affected in different ways by macroenvironmental forces in each market.
True
False
12. GDP refers to the value of the world’s annual total production of goods and services.
True
False
13. High inflation has negative implications for all industries.
True
False
14. High inflation rates
hurt all industries, but some more than others.
hurt all industries equally.
may actually help some industries.
None of the above.
15. Leaders in an industry always prefer less government regulation.
True
False
16. Less rigid governmental regulations for business activities are typically found in
China.
France.
the United States.
Venezuela.
17. Macroenvironmental analysis considers effects of forces on
a single firm.
industry leaders.
an entire industry.
None of the above.
18. Macroenvironmental forces are assessed in terms of their direct effects on a particular firm.
True
False
19. Opponents of anthropogenic climate change contend that
human activity is not a primary cause of changes in global climate patterns.
carbon dioxide produced by human activity results in substantial changes in global climate patterns.
U.S. manufacturers are primarily to blame for global warming.
None of the above.
20. Outcomes of elections, legislation, and judicial court decisions are considered to be
political-legal forces.
economic forces.
arbitrary forces.
None of the above.
21. Proponents of anthropogenic climate change contend that
sun spots are responsible for climate conditions.
carbon dioxide produced by human activity results in substantial changes in global climate patterns.
global cooling—not global warming—is a key concern.
None of the above.
22. Since the 1990s, the Chinese economy has
become more regulated.
adopted a more free market approach.
has remained stagnant.
None of the above.
23. The Chinese economy has become more regulated in the past ten years.
True
False
24. The Fair Labor Standards Act stops unfair methods of competition.
True
False
25. The U.S. regulation that forbids contracts which tie the sale of one product to the sale of another is known as the
Clayton Act.
Sherman Act.
Magnuson-Moss Act.
Webb-Pomerene Act.
26. The U.S. regulation that prohibits monopolistic activity is known as the
Clayton Act.
Sherman Act.
Magnuson-Moss Act.
CAN-SPAM Act.
27. The U.S. regulation that requires accuracy in product warranties is known as the
Clayton Act.
Sherman Act.
Magnuson-Moss Act.
Webb-Pomerene Act.
28. The movement in North America toward free trade is associated with
the EEU.
NAFTA.
GATT.
the U.S. cartel.
29. To foster free markets, the U.S. generally does not restrict the sale of nuclear and defense-related products to unfriendly nations.
True
False
30. U.S. legislation that increased regulation of financial markets and credit rating agencies is known as the
Car Allowance Rebate System (CARS).
Antitrust Verification Act (AVA).
Dodd-Frank Act.
Obama-Geithner Act.
31. When the U.S. dollar is strong,
U.S. manufacturers tend to make more purchases from foreign sources.
U.S. manufacturers tend to limit purchases from foreign sources.
U.S. manufacturers are more likely to close plants abroad.
None of the above.
32. When the U.S. dollar is weak,
U.S. manufacturers tend to make more purchases from foreign sources.
U.S. manufacturers tend to limit purchases from foreign sources.
U.S. manufacturers are more likely to open plants abroad.
None of the above.
33. When the U.S. dollar is weak, U.S. manufacturers tend to locate more of their plants abroad.
True
False
34. Which of the following is not an element within the macroenvironment?
industry forces
social forces
economic forces
political-legal forces
35. Which of the following is not an element within the macroenvironment?
social forces
technological forces
economic forces
None of the above