C211 Global Economics for Managers Practice Questions - Set 1 - Part 3

Correct Answer: b) Property rights

Property rights refer to the legal rights to use an economic resource and to benefit from the income it generates.

Correct Answer: b) Efficient scale

Efficient scale is the quantity of output at which average total cost is minimized, maximizing efficiency.

Correct Answer: c) Theocratic law

Theocratic law is a legal system where laws are based on religious teachings, and it is often found in countries with strong religious governance.

Correct Answer: c) Perfectly inelastic

When demand is perfectly inelastic, the quantity demanded remains constant regardless of price changes.

Correct Answer: c) Competitor analysis

Competitor analysis is the process of predicting a rival's actions and preparing strategies to respond effectively.

Correct Answer: c) Comparative advantage

Comparative advantage theory suggests that countries should trade based on their relative efficiency in producing certain goods compared to other nations.

Correct Answer: a) Cross-price elasticity of demand

Cross-price elasticity of demand measures how the quantity demanded of one good responds to a price change in another good, indicating if they are substitutes or complements.

Correct Answer: a) Common law, civil law, theocratic law

The three primary legal traditions globally are common law, civil law, and theocratic law, each with different foundations and applications.

Correct Answer: a) The availability of close substitutes

The availability of close substitutes is a major determinant of price elasticity of demand, as consumers can easily switch to alternatives when prices change.

Correct Answer: b) Tariff

A tariff is a tax imposed on imports to protect domestic industries and raise government revenue.