Business Administration Textbook Exam Questions - 693 Verified Questions

Business Administration

Textbook Exam Questions

Course Introduction

Business Administration is a multidisciplinary field that equips students with foundational knowledge and practical skills in managing organizations, making effective decisions, and leading teams. This course explores key areas such as management principles, marketing, finance, human resources, operations, and strategic planning. Through case studies, real-world examples, and collaborative projects, students develop critical thinking and problem-solving abilities essential for navigating the complexities of todays dynamic business environments. Emphasis is placed on ethical practices, global perspectives, and the innovative use of technology to address contemporary business challenges.

Recommended Textbook

Managerial Economics Theory Applications and Cases 8th Edition by W. Bruce Allen

Available Study Resources on Quizplus

19 Chapters

693 Verified Questions

693 Flashcards

Source URL: https://quizplus.com/study-set/1265 Page 2

Chapter 1: Introduction

Available Study Resources on Quizplus for this Chatper

24 Verified Questions

24 Flashcards

Source URL: https://quizplus.com/quiz/24971

Sample Questions

Q1) Which of the following would be likely to reduce the demand for residential housing?

A) High prices for residential housing units.

B) High mortgage interest rates.

C) High prices for lumber and other construction materials.

D) Low unemployment rates.

E) Low prices for residential housing units.

Answer: B

Q2) J.D.Power,the big management consulting firm,extols the reliability of Dell computers; this causes the:

A) demand for Dell computers to increase.

B) supply of Dell computers to increase.

C) quantity supplied of Dell computers to increase.

D) quantity supplied of Dell computers to decrease.

E) demand and supply of Dell computers to remain unchanged.

Answer: A

To view all questions and flashcards with answers, click on the resource link above. Page 3

Chapter 2: Demand Theory

Available Study Resources on Quizplus for this Chatper

51 Verified Questions

51 Flashcards

Source URL: https://quizplus.com/quiz/24972

Sample Questions

Q1) Total revenue decreases as output increases whenever:

A) marginal revenue is less than average revenue.

B) marginal revenue is greater than average revenue.

C) average revenue is decreasing.

D) marginal revenue is negative.

E) average revenue is negative.

Answer: D

Q2) Suppose that the demand curve for compact disks is given by P = 600 - Q and that the supply curve is given by P = 0.5Q,where Q is the quantity of compact disks and P is their price.What is the price elasticity of demand at the equilibrium price and quantity?

A) -0.05.

B) -0.02.

C) -0.20.

D) -0.50.

E) -2.00.

Answer: D

To view all questions and flashcards with answers, click on the resource link above.

4

Chapter 3: Consumer Behavior and Rational Choice

Available Study Resources on Quizplus for this Chatper

52 Verified Questions

52 Flashcards

Source URL: https://quizplus.com/quiz/24973

Sample Questions

Q1) In most cases,at the optimal consumption bundle:

A) the consumer cannot increase utility without some change in market conditions or preferences.

B) the last dollar spent on each good brings the same amount of satisfaction to the consumer.

C) the marginal rate of substitution is equal to the absolute values of the slope of the budget constraint.

D) the indifference curve is just tangent to the budget constraint.

E) all of the above

Answer: E

Q2) Points along an indifference curve represent bundles of goods that:

A) cost the same amount to buy.

B) consumers don't like very much.

C) decline in marginal utility.

D) deliver equal utility.

E) cannot be compared.

Answer: D

To view all questions and flashcards with answers, click on the resource link above.

Page 5

Chapter 4: Estimating Demand Functions

Available Study Resources on Quizplus for this Chatper

48 Verified Questions

48 Flashcards

Source URL: https://quizplus.com/quiz/24974

Sample Questions

Q1) In simple regression analysis (Y = a + bX),the estimate of the intercept coefficient a is equal to

A) Y_mean - bX_mean.

B) X_mean - bY_mean.

C) Y_mean + bX_mean.

D) X_mean + bY_mean.

E) Y_mean - X_mean / b.

Q2) If the Durbin-Watson statistic is near 0,we can conclude that there is:

A) positive serial correlation.

B) negative serial correlation.

C) no serial correlation.

D) a multicollinearity problem.

E) not enough data to estimate the regression.

Q3) If the Durbin-Watson statistic is 2,we can conclude that:

A) there is no serial correlation.

B) the error terms have constant variances.

C) there is negative serial correlation.

D) there is positive serial correlation.

E) there is multicollinearity.

To view all questions and flashcards with answers, click on the resource link above.

Page 6

Chapter 5: Production Theory

Available Study Resources on Quizplus for this Chatper

44 Verified Questions

44 Flashcards

Source URL: https://quizplus.com/quiz/24975

Sample Questions

Q1) The law of diminishing marginal returns is obvious because,if it didn't hold,it would be possible to:

A) feed everyone in the world by intensively cultivating one acre of land.

B) manufacture all of the cars in the world using just one of the world's existing factories.

C) increase total output of a product without employing additional inputs.

D) All of the above.

E) a and b.

Q2) The marginal product of labor can be illustrated geometrically as the:

A) slope of the total product curve with respect to labor.

B) slope of the total product curve with respect to capital.

C) slope of a chord from the origin out to the total product curve at the specified level of labor.

D) inverse of the slope of a chord from the origin out to the total product curve at the specified level of labor.

E) slope of the total product curve with respect to labor divided by the slope of the total product curve with respect to capital.

To view all questions and flashcards with answers, click on the resource link above.

Chapter 6: The Analysis of Costs

Available Study Resources on Quizplus for this Chatper

54 Verified Questions

54 Flashcards

Source URL: https://quizplus.com/quiz/24976

Sample Questions

Q1) Marginal cost is equal to the:

A) change in total variable cost divided by the change in output.

B) total variable cost divided by the level of output.

C) price of the input divided by the average product of the variable input.

D) price of the input divided by the total product of the variable input.

E) total variable cost divided by the change in output levels.

Q2) If average variable cost is increasing with increases in output,total fixed cost will:

A) increase with increases in output.

B) decrease with increases in output.

C) remain unchanged with increases in output.

D) increase initially and then decrease with increases in output.

E) decrease initially and then increase with increases in output.

Q3) Trudeau's Body Shop incurs total costs given by TC = 2,400 + 100Q.If the price it charges for a paint job is $120,what is its break-even level of output?

A) 20 paint jobs.

B) 40 paint jobs.

C) 60 paint jobs.

D) 90 paint jobs.

E) 120 paint jobs.

To view all questions and flashcards with answers, click on the resource link above.

Page 8

Chapter 7: Perfect Competition

Available Study Resources on Quizplus for this Chatper

39 Verified Questions

39 Flashcards

Source URL: https://quizplus.com/quiz/24977

Sample Questions

Q1) If a representative firm with long-run total cost given by TC = 2,000 + 20q + 5q² operates in a competitive industry where the market demand is given by Q_D = 10,000 - 40P,the long-run equilibrium output of the individual firm's will be:

A) 10 units.

B) 20 units.

C) 30 units.

D) 35 units.

E) 40 units.

Q2) If a representative firm with total cost given by TC = 20 + 20q + 5q² operates in a competitive industry where the short-run market demand and supply curves are given by Q_D = 1,400 - 40P and Q_S = -400 + 20P,the number of firms operating in the short run will be:

A) 100.

B) 140.

C) 200.

D) 280.

E) 240.

To view all questions and flashcards with answers, click on the resource link above. Page 9

Chapter 8: Monopoly and Monopolistic Competition

Available Study Resources on Quizplus for this Chatper

47 Verified Questions

47 Flashcards

Source URL: https://quizplus.com/quiz/24978

Sample Questions

Q1) If John produces joint products A and B and refuses to sell all the A he produces,then:

A) A is a high-demand good.

B) A is a low-demand good.

C) A is a high-cost good.

D) A is a low-cost good.

E) John is definitely not profit maximizing.

Q2) For the Minnie Mice Company,the elasticity of demand is -6,and the profit-maximizing price is 30.If MC is marginal cost and AVC is average variable cost,then:

A) MC = 25.

B) AVC = 25.

C) MC = 30.

D) AVC = 36.

E) MC = 36.

To view all questions and flashcards with answers, click on the resource link above.

10

Chapter 9: Managerial Use of Price Discrimination

Available Study Resources on Quizplus for this Chatper

27 Verified Questions

27 Flashcards

Source URL: https://quizplus.com/quiz/24979

Sample Questions

Q1) Gliberace's Fashion Accessories of Las Vegas produces gemstone-encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 6(Q_LA + Q_SF).Demand for Gliberace's stones in the two cities is given by Q_LA = 70 - 2P_LA and Q_SF = 50P_SF.If Gliberace cannot price discriminate between the two cities,and so charges the same price in each,how many stones will it sell in Los Angeles?

A) 12.

B) 15.

C) 18.

D) 21.

E) 24.

Q2) When Exxoff Oil Corporation offers discounts based on credit card records of gas quantities purchased,they are practicing:

A) first-degree price discrimination.

B) second-degree price discrimination.

C) third-degree price discrimination.

D) markup pricing.

E) tying.

To view all questions and flashcards with answers, click on the resource link above. Page 11

Chapter 10: Bundling and Intrafirm Pricing

Available Study Resources on Quizplus for this Chatper

26 Verified Questions

26 Flashcards

Source URL: https://quizplus.com/quiz/24980

Sample Questions

Q1) If a firm has a marketing division and a production division with increasing costs,and a competitive external market for the production division's output exists,then the marketing division should always buy:

A) from the production division at production's price.

B) all it wants at the external market price from the production division.

C) only externally.

D) all the production division can produce at the external price.

E) what it wants at the external market price, first from whatever the production division wishes to sell and then, if necessary, externally.

Q2) Transfer prices are needed when:

A) firms purchase raw materials from other firms.

B) consumers sell goods and services to one another.

C) markets must be simulated within firms.

D) products are bundled and sold as a package.

E) firms charge different prices to customers where there are no differences in production costs.

To view all questions and flashcards with answers, click on the resource link above.

12

Chapter 11: Oligopoly

Available Study Resources on Quizplus for this Chatper

41 Verified Questions

41 Flashcards

Source URL: https://quizplus.com/quiz/24981

Sample Questions

Q1) Two local ready-mix cement manufacturers,Here and There,have combined demand given by Q = 105 - P.Their total costs are given by TC_Here = 5Q_Here + 0.5Q²_Here and TC_There = 5Q_There + 0.5Q²_There.If they cannot successfully collude and instead produce where the market price equals marginal cost,each firm's profits will be:

A) $111.11.

B) $222.22.

C) $333.33.

D) $444.44.

E) $555.55.

Q2) The kinked demand model assumes firms will:

A) ignore the price increases of rivals.

B) follow the price decreases of rivals.

C) ignore all price changes of rivals.

D) follow all price changes of rivals.

E) a and b

To view all questions and flashcards with answers, click on the resource link above.

Page 13

Chapter 12: Game Theory

Available Study Resources on Quizplus for this Chatper

28 Verified Questions

28 Flashcards

Source URL: https://quizplus.com/quiz/24982

Sample Questions

Q1) The difference between game trees and decision trees is:

A) that game trees are not useful in strategic situations.

B) that decision trees describe actions that depend on the behavior of rivals.

C) that game trees have interactive payoffs.

D) that decision trees are a function of many individuals and the state of nature.

E) none of the above.

Q2) Radio City promises if you can find a lower advertised price for anything you bought at Radio City,anywhere in town within 30 days,it will return the difference plus 20%.A sophisticated game theoretic analysis suggests Radio City may be:

A) losing money in the long run.

B) colluding with other stores.

C) using a commitment to threaten competitors.

D) preempting competitors.

E) using price leadership.

To view all questions and flashcards with answers, click on the resource link above. Page 14

Chapter 13: Auctions

Available Study Resources on Quizplus for this Chatper

30 Verified Questions

30 Flashcards

Source URL: https://quizplus.com/quiz/24983

Sample Questions

Q1) Which of the following is an example of a descending-bid auction?

A) Sealed-bid auction.

B) Japanese auction.

C) Dutch auction.

D) Vickrey auction.

E) Rabbit auction.

Q2) The winner's curse occurs because:

A) competitors in auctions often make poor bids.

B) there are too many competitors in most auctions.

C) competitors in auctions usually make bids that are below the expected value of the prize.

D) sealed-bid auctions have too much uncertainty attached to them.

E) the winning competitor in an auction will make a bid that is greater than the average bid.

Q3) Regardless of the rules of an auction,the winner will pay:

A) his or her reservation price for the good at auction.

B) the true value of the good at auction.

C) the expected value of the good at auction.

D) the maximum amount that he or she is willing to pay for the good at auction.

E) the reservation price of the second highest bidder for the good at auction.

To view all questions and flashcards with answers, click on the resource link above. Page 15

Chapter 14: Risk Analysis

Available Study Resources on Quizplus for this Chatper

44 Verified Questions

44 Flashcards

Source URL: https://quizplus.com/quiz/24984

Sample Questions

Q1) If a coin were weighted so that heads had three times the chance [P(H)] of coming up as tails [P(T)],the probability distribution would be given by:

A) P(H) = 0.67 and P(T) = 0.33.

B) P(H) = 1 and P(T) = 3.

C) P(H) = 0.5 and P(T) = 0.5.

D) P(H) = 0.75 and P(T) = 0.25.

E) P(H) = 1 and P(T) = 0.33.

Q2) If expected profit is R and variance \(\sigma\) ² = 0,then:

A) R_i = 0 for all i

B) R - R_i is a positive constant for all i.

C) R - R_i is a negative constant for all i.

D) R_i = 0 for all i.

E) R_i = R for all i.

Q3) Using the coefficient of variation instead of the standard deviation accounts for the: A) timing of payoffs.

B) risk attendance of managers.

C) riskiness of different projects.

D) size of different projects.

E) use of a weighted average of different profits.

To view all questions and flashcards with answers, click on the resource link above.

Page 16

Chapter 15: Principalagent Issues and Managerial Compensation

Available Study Resources on Quizplus for this Chatper

24 Verified Questions

24 Flashcards

Source URL: https://quizplus.com/quiz/24985

Sample Questions

Q1) Principal-agent problems can exist between:

A) workers and managers.

B) workers and owners.

C) workers and customers.

D) owners and customers.

E) all the above.

Q2) Use the following profit function (per worker)for the Blue Delta Faucet Company to answer this question. P(e)= 40e - (2e² + 100)

Note that P = firm profits and e = worker-hours per day.Assume that effort is observed perfectly.At the profit-maximizing level of effort for the firm,daily per-worker compensation will be:

A) $100.

B) $200.

C) $300.

D) $340.

E) none of the above.

To view all questions and flashcards with answers, click on the resource link above. Page 17

Chapter 16: Adverse Selection

Available Study Resources on Quizplus for this Chatper

15 Verified Questions

15 Flashcards

Source URL: https://quizplus.com/quiz/24986

Sample Questions

Q1) Suppose that in Milford,Connecticut,owners of used cars that are lemons value their cars at $2,500,and owners of used cars that are reliable value their cars at $6,000.There are equal quantities of each type of car on the market.Buyers value low-quality cars at $1,500 and high-quality cars at $7,000.In this market:

A) only low-quality cars will be sold at a price of $1,500.

B) only low-quality cars will be sold at a price of $2,500.

C) all cars will sell at a price of $4,250.

D) only high-quality cars will be sold at a price of $6,000.

E) only high-quality cars will be sold at a price of $7,000.

Q2) Which of the following is the best example of adverse selection?

A) Smokers are more likely to obtain health insurance.

B) Safe drivers tend to get auto insurance.

C) All drivers are required to have auto insurance if they are to register their cars legally in Connecticut.

D) Both healthy and unhealthy people tend to buy life insurance.

E) Given the existence of government-funded flood insurance, people continue to build homes in floodplains.

To view all questions and flashcards with answers, click on the resource link above. Page 18

Chapter 17: Government and Business

Available Study Resources on Quizplus for this Chatper

35 Verified Questions

35 Flashcards

Source URL: https://quizplus.com/quiz/24987

Sample Questions

Q1) If there are two equal-sized firms in an industry,the Herfindahl-Hirschman index would be:

A) 50.

B) 100.

C) 2,500.

D) 5,000.

E) 250.

Q2) The market concentration ratio:

A) shows the percentage of total sales or production accounted for by the four largest firms in an industry.

B) is a widely used, reliable measure of an industry's market structure.

C) was developed by a Swedish and a German statistician in the late 1890s.

D) shows the percentage of total sales or production accounted for by the 10 largest firms in the United States.

E) is so flawed a measure of an industry's market structure that it is almost never used.

To view all questions and flashcards with answers, click on the resource link above. Page 19

Chapter 18: Optimization Techniques

Available Study Resources on Quizplus for this Chatper

55 Verified Questions

55 Flashcards

Source URL: https://quizplus.com/quiz/24988

Sample Questions

Q1) If Y = 12 - 6X + 8X^-1/2,then dY/dX is:

A) -6 - 4X^-3/2.

B) -4X^-3/2.

C) 6 - 4X^-3/2.

D) -6 - 4X^-1/2.

E) -6 - X^-3/2.

Q2) Maximum profit occurs wherever:

A) the slope of the total revenue function equals marginal revenue.

B) the slope of the total revenue function equals marginal cost.

C) the slope of the total revenue function is maximized.

D) the total revenue is maximized.

E) none of the above.

Q3) The constant rule of differentiation is:

A) Y = a + bX \(\rarr\) dY/dX = a + b

B) Y = a + bX \(\rarr\) dY/dX = a

C) Y = a + bX\(\rarr\)dY/dX = b

D) Y = a + bX \(\rarr\)dY/dX = ab

E) Y = a + bX\(\rarr\) dY/dX = ab

To view all questions and flashcards with answers, click on the resource link above.

Page 20

Chapter 19: Appendix Problems

Available Study Resources on Quizplus for this Chatper

9 Verified Questions

9 Flashcards

Source URL: https://quizplus.com/quiz/24989

Sample Questions

Q1) You've just won the $25 million lottery.You are going to receive a check for $1 million today and at the end of every year for the next 24 years.If the interest rate is 10%,the present value of your prize is:

A) $8,984,744.

B) $9,984,744.

C) $12,984,744.

D) $20,000,000.

E) $25,000,000.

Q2) Your mortgage requires that you pay $12,000 at the end of each of the next 30 years.If the annual interest rate is 12%,then you must have borrowed approximately: A) $117,660.

B) $96,660.

C) $78,660.

D) $63,660.

E) $133,660.

To view all questions and flashcards with answers, click on the resource link above.

21