PART 1

1. Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention prices. The server takes their order, and both Betty and Fred enjoyed the meal immensely. When the bill comes, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance. The server said, “Are you ready to order?” and when Fred said “Yes,” the server merely asked, “What may I get you tonight?”
   Fred must pay based on a promissory estoppel theory.
   Fred must pay based on expressed contract theory.
   Fred is correct because no contract was formed.
   Fred must pay based on an implied-in-fact contract theory.
2. The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will:
   Be equal to the average total cost of diamonds.
   Exceed the marginal cost of diamonds but equal to the average total cost of diamonds.
   Be equal to the marginal cost of diamonds.
   Exceed both the marginal cost and the average total cost of diamonds
3. Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store. He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store. This pipeline is actually a__________.
   marketing tunnel
   consumer market
   marketing channel
   distribution matrix
4. A monopoly firm is different from a perfectly competitive firm in that:
   A monopolist’s demand curve is perfectly inelastic whereas a perfectly competitive firm’s demand curve is perfectly elastic.
   A monopolist can influence market price whereas a perfectly competitive firm cannot.
   A competitive firm has a u-shaped average cost curve whereas a monopolist does not.
   There are many substitutes for a monopolist’s product whereas there are no substitutes for a competitive firm’s product.
5. A 911 emergency response service needs operators who are bilingual in English and Spanish. A few applicants of Spanish origin are rejected due to poor English-speaking skills. They file a complaint on the grounds of discrimination based on nationality. Their complaint is squashed. Here, the defense of the federal government is on the grounds of:
   Circumstantial evidence
   Inculpatory evidence
   Exclusionary rule
   Bona fide occupational qualifications
6. In order to focus your presentation on people, you should______. 
   avoid using presentation software or other technology
   use a lot of “I” statements
   make individuals and groups the subject of your sentences
   include as many photographs as possible in your slides
7. Which of the following is typically included in the drafting stage of writing an effective business message?
   Setting a positive and other-oriented tone
   Sending the message to be proofread
   Double-checking everything
   Identifying the primary message and key points
8. Marketing refers to__________.
   the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large
   the process of identifying target market segments for a product or service
   the activity involved in getting a product or service from the manufacturer to ultimate consumers and organizational buyers
   the production of products or services that will generate the highest return on investment
9. Lori is using secondary research to develop a business report. How can she write her report in a way that demonstrates originality in thought? 
   Cite all her research sources
   Use the most current documentation guidelines
   Generate her own conclusions and recommendations
   Adopt a methodical approach to decision making
10. Annie, an employee who often attributes her team failures to bad luck, attributes other teams’ failures to personal shortcomings. Which of the following cognitive biases do Annie’s attributions exemplify?
    Self-deception bias
    Belief bias
    In-group bias
    Hindsight bias
11. When does the straw man fallacy occur?
    When a person tries to disprove a claim based on its source.
    When a person falsifies or overstates an adversary’s position.
    When a person considers only 2 alternatives even when other options are available.
    When a decision maker dismisses an alternative that fails to solve the issue completely.
12. Which of the following types of unemployment is considered to be the most controllable through demand-side macroeconomic policy?
    Cyclical unemployment
    Natural unemployment
    Structural unemployment
    Frictional unemployment
13. Microeconomics and macroeconomics are:
    Interrelated because both are often taught by the same instructors
    Interrelated because what happens in the economy as a whole is based on individual decisions
    Virtually identical, though one is much more difficult than the other
    Not related because they are taught separately
14. Article 6 of the Treaty on European Union called the Maastricht Treaty states the EU is “founded” on:
    specific performance
    stare decisis
    private markets
    rule of law
15. Which of the following is the path through which contractionary monetary policy works?
    Money down implies interest rate up implies investment up implies income down
    Money down implies interest rate up implies investment down implies income down
    Money down implies interest rate down implies investment down implies income down
    Money down implies interest rate down implies investment up implies income down
16. The depreciation of currency will:
    improve a country’s comparative advantage.
    worsen a country’s comparative advantage.
    balance a trade surplus.
    have no impact on a country’s comparative advantage.
17. Marketing research refers to__________.
    The use of information technology to find objective solutions to a marketing problem
    the process of systematically collecting and analyzing information in order to define a marketing problem
    the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions
    the science of using observable human behavior in order to identify and solve marketing problems
18. _ is the process of converting meaning into messages composed of words and nonverbal signals.
    Translating
    Decoding
    Encoding
    Filtering
19. If a population is known to be normally distributed, what can be said of the sample distribution of the sample mean drawn from this population? 
    For a sample size n < 30, the sampling distribution of the sample mean is normally distributed. For a sample size n > 30, the sampling distribution of the sample mean is normally distributed.
    For any sample size n, the sampling distribution of the sample mean is normally distributed.
    For a sample size n < 50, the sampling distribution of the sample mean is normally distributed.
20. Sam, a marketing manager, often makes ethical decisions based on what others feel about those decisions. He often considers opinions from other managers and employees. Which of the following ethical systems do Sam’s decisions follow?
    Consequentialism
    Utilitarianism
    Relativism
    Egoism
21. Federal law and business leaders alike favor __ as a means of governing private business ethics.
    Self-regulation by companies
    Establishment of federal regulators in all private companies to establish and enforce ethical standards.
    Giving the federal government exclusive jurisdiction regarding ethics and ethics violation enforcement.
    Creating uniform statutes of business ethics.
22. Which of the following statements is true of the WARN Act?
    It requires employers to give notice to an “at will” employee that he/she is being fired.
    It requires employers to give notice of a scheduled mass layoff.
    It requires employers to give notice to employees that they are being subjected to polygraph tests.
    It requires employers to give notice to employees that an unscheduled drug test will be conducted for all employees.
23. According to the Ajzen model, the strongest predictor of an employee’s behavior is/are__________. 
    social norms
    the employee’s values
    the employee’s attitudes
    the employee’s intentions
24. The interdisciplinary field dedicated to understanding and managing people at work is called:
    management dynamics
    management theory
    organizational behavior
    organizational dynamics