Q1: The longer the forecast horizon, the more accurate the forecast is
Answer: Wrong – FalseAnswer
Q2: Aggregate forecasts are more accurate
Answer: Correct – TrueAnswer
Q3: Long-term forecasts are usually more accurate than short-term forecasts
Answer: Wrong – FalseAnswer
Q4: Short-term forecast is employed to handle seasonality in demand across a time period of 6 months to 1 year
Answer: Wrong – FalseAnswer
Q5: Long-term forecasts are used for facility location selection, capacity planning, and process selection decisions
Answer: Correct – TrueAnswer
Q6: Qualitative forecasting methods are more suitable when there is little historical data available
Answer: Correct – TrueAnswer
Q7: Level is one of the elements of the systematic component of demand which measures the rate of growth or decline in demand for the next period
Answer: Wrong – FalseAnswer
Q8: In adaptive forecasting, the estimates of level, trend, and seasonality are updated after each demand observation
Answer: Wrong – FalseAnswer
Q9: Moving average method is one of the methods of static forecasting
Answer: Wrong – FalseAnswer
Q10: Simple exponential method is employed when the demand has no observable trend or seasonality
Answer: Correct – TrueAnswer
Q11: Market structure refers to the competitive environment in which the buyers and sellers of a product operate
Answer: Correct – TrueAnswer
Q12: Economists define a market as a place where buyers go to purchase units of a commodity
Answer: Wrong – FalseAnswer
Q13: A market structure is defined in terms of the number and sizes of buyers and sellers on a market, the type of product traded on the market, the mobility of resources, and the amount of knowledge economic agents have about market conditions
Answer: Correct – TrueAnswer
Q14: If a market is perfectly competitive, then the market demand curve must be infinitely price elastic
Answer: Wrong – FalseAnswer
Q15: If the firms in an industry are price takers, then every firm in the industry faces a horizontal demand curve
Answer: Correct – TrueAnswer
Q16: Firms that sell commodities on markets that are imperfectly competitive face downward-sloping demand curves
Answer: Correct – TrueAnswer
Q17: Monopoly is a market structure in which there is only one buyer of a product for which there are no close substitutes
Answer: Wrong – FalseAnswer
Q18: Oligopoly is a market structure in which there are few sellers of a product and additional sellers cannot easily enter the industry
Answer: Correct – TrueAnswer
Q19: Monopsony is a market structure in which there is a single buyer of a commodity or input for which there are no close substitutes
Answer: Correct – TrueAnswer
Q20: Under perfect competition, changes in market supply do not affect market price
Answer: Wrong – FalseAnswer
Q21: Commodities that sell for the same price are referred to as homogeneous
Answer: Wrong – FalseAnswer
Q22: Most commodities are traded on perfectly competitive markets
Answer: Wrong – FalseAnswer
Q23: The combination of product homogeneity and perfect knowledge ensure that a single price will prevail on a perfectly competitive market
Answer: Correct – TrueAnswer
Q24: Product price on a competitive market is determined by the intersection of the market demand curve with the market supply curve
Answer: Correct – TrueAnswer
Q25: If a firm in a perfectly competitive industry charges a higher price than that charged by other firms in the industry it will be unable to sell any of its output
Answer: Correct – TrueAnswer
Q26: The demand curve faced by a perfectly competitive firm is horizontal
Answer: Correct – TrueAnswer
Q27: A perfectly competitive firm’s demand curve is above its marginal revenue curve
Answer: Wrong – FalseAnswer
Q28: If profit maximizing firms in a perfectly competitive industry are producing 14,000 units per day, but can only sell 12,000 units per day at the current market price of $23, then the market equilibrium price must be greater than $
Answer: Wrong – FalseAnswer
Q29: If profit maximizing firms in a perfectly competitive industry will produce 14,000 units per day if the market price is $23 and consumers will purchase 14,000 units per day if the market price is $20, then the market equilibrium quantity must be greater than 14
Answer: Wrong – FalseAnswer
Q30: The efficient market hypothesis asserts that the price of a share of a firm’s stock reflects the value implied by available information about the profitability of the firm
Answer: Correct – TrueAnswer
Q31: The only choice available to a perfectly competitive firm that is producing efficiently is what price to charge in order to maximize profits
Answer: Wrong – FalseAnswer
Q32: Every profit-maximizing firm should produce a level of output where marginal revenue is equal to marginal cost
Answer: Correct – TrueAnswer
Q33: A perfectly competitive firm maximizes profit by producing a level of output where marginal cost is equal to price
Answer: Correct – TrueAnswer
Q34: If a perfectly competitive firm is producing a level of output where its marginal cost is greater than market price, it should raise its price
Answer: Wrong – FalseAnswer
Q35: If a perfectly competitive firm is producing a level of output where price is equal to marginal cost and greater than average variable cost, then it should cease production in the short run
Answer: Wrong – FalseAnswer
Q36: The shut-down pointof a perfectly competitive firm is at the minimum point on its short-run average variable cost curve
Answer: Correct – TrueAnswer
Q37: The supply curve of a perfectly competitive firm is identical to the portion of its marginal cost curve that is above its average total cost curve
Answer: Wrong – FalseAnswer
Q38: If a perfectly competitive firm is in long-run equilibrium, then it is earning an economic profit of zero
Answer: Correct – TrueAnswer
Q39: If a perfectly competitive firm is in long-run equilibrium, then market price is equal to short-run marginal cost, short-run average total cost, long-run marginal cost, and long-run average total cost
Answer: Correct – TrueAnswer
Q40: If firms in a perfectly competitive industry are earning economic profits greater than zero, then more firms will enter the industry
Answer: Correct – TrueAnswer
Q41: If more firms enter a perfectly competitive industry, market equilibrium price will increase
Answer: Wrong – FalseAnswer
Q42: A perfectly competitive firm is in long-run equilibrium when all inputs are earning their opportunity costs
Answer: Correct – TrueAnswer
Q43: Depreciation of a country’s currency tends to make imports more expensive
Answer: Correct – TrueAnswer
Q44: Appreciation of a country’s currency tends to increase the demand for the country’s exports
Answer: Wrong – FalseAnswer
Q45: An increase the number of U.S. dollars required to purchase one British pound would be a depreciation of the U.S. dollar and an appreciation of the British pound
Answer: Correct – TrueAnswer
Q46: An increase in the U.S. demand for British products would tend to cause an appreciation of the British pound
Answer: Correct – TrueAnswer
Q47: A monopolist’s marginal revenue is below market price
Answer: Correct – TrueAnswer
Q48: A natural monopoly is one that results from exclusive control of a crucial natural resource
Answer: Wrong – FalseAnswer
Q49: All monopoly power that is based on barriers to entry is subject to decay in the long run that based on government franchise
Answer: Correct – TrueAnswer
Q50: Monopolists always make economic profits
Answer: Wrong – FalseAnswer
Q51: Monopolists are price takers
Answer: Wrong – FalseAnswer
Q52: If a monopolist earns $5,000 when it sells 100 units of output and $5,025 when it sells 101 units of output, then the marginal revenue of the 101st unit is $
Answer: Correct – TrueAnswer
Q53: If a monopolist has a linear demand curve, then it has a linear marginal revenue curve
Answer: Correct – TrueAnswer
Q54: A profit-maximizing monopolist will never produce a quantity that corresponds to a point on the inelastic portion of its demand curve
Answer: Correct – TrueAnswer
Q55: A monopolist will shut down in the short run if price is everywhere less than average total cost
Answer: Wrong – FalseAnswer
Q56: A monopolist that is earning a profit in the short run can be expected to earn at least as much profit in the long run
Answer: Correct – TrueAnswer
Q57: If a monopolist is in short-run equilibrium, it must be in long-run equilibrium
Answer: Wrong – FalseAnswer
Q58: In general, if a perfectly competitive industry is taken over by a monopolist, it will charge a lower price and produce a larger quantity of output
Answer: Wrong – FalseAnswer
Q59: When compared to perfect competition, monopoly results in a deadweight loss
Answer: Correct – TrueAnswer
Q60: The difference between the total amount that consumers would be willing to pay for a given level of consumption and the amount that they actually have to pay is called consumers’ surplus
Answer: Correct – TrueAnswer
Q61: Most markets are either perfectly competitive or monopolized
Answer: Wrong – FalseAnswer
Q62: If a firm is small, produces a differentiated good for which there are many close substitutes, and it is easy to enter and exit the industry, then the firm is a monopolistic competitor
Answer: Correct – TrueAnswer
Q63: Monopolistic competition is most common in the manufacturing sector
Answer: Wrong – FalseAnswer
Q64: The short-run supply curve for a monopolistically competitive firm is identical to the upward-sloping portion of the firm’s marginal cost curve above average variable cost
Answer: Wrong – FalseAnswer
Q65: Monopolistically competitive firms are price takers
Answer: Wrong – FalseAnswer
Q66: Monopolistically competitive firms face a downward-sloping demand curve
Answer: Correct – TrueAnswer
Q67: If an imperfectly competitive firm has a linear demand curve, then its marginal revenue curve has the same price intercept as its demand curve
Answer: Correct – TrueAnswer
Q68: If an imperfectly competitive firm has a linear demand curve, then its marginal revenue curve has a quantity intercept that is half that of the demand curve
Answer: Correct – TrueAnswer
Q69: As more firms enter a monopolistically competitive industry, the market supply curve shifts to the right
Answer: Wrong – FalseAnswer
Q70: As firms leave a monopolistically competitive industry, the remaining firms’ demand curves shift to the right and become less elastic
Answer: Correct – TrueAnswer
Q71: If a monopolistically competitive firm is in long-run equilibrium, then its short-run average total cost curve is tangent to its demand curve
Answer: Correct – TrueAnswer
Q72: A market that is monopolistically competitive will tend to have fewer firms than would be the case if the same market was perfectly competitive
Answer: Wrong – FalseAnswer
Q73: Monopolistically competitive firms operate with excess capacity
Answer: Correct – TrueAnswer
Q74: In the long run, monopolistically competitive firms earn zero economic profit
Answer: Correct – TrueAnswer
Q75: Product variation is the result of quality control problems
Answer: Wrong – FalseAnswer
Q76: Monopolistically competitive firms attempt to minimize selling expenses
Answer: Wrong – FalseAnswer
Q77: Selling expenses include any marketing expenditures that are intended to increase the demand for a product
Answer: Correct – TrueAnswer
Q78: A firm should increase expenditures on marketing and product variation up to the point where an additional dollar spent generates a marginal revenue of no less than one dollar
Answer: Correct – TrueAnswer
Q79: One problem with the theory of monopolistic competition is that it is difficult to define a market and to identify the firms that comprise it
Answer: Correct – TrueAnswer
Q80: In most cases, a monopolistically competitive market can be adequately approximated by the perfectly competitive model or the oligopoly model
Answer: Correct – TrueAnswer
Q81: Decisions relating to production scheduling involve
Answer: short-term forecasting.Answer
Q82: Decisions relating to the sales and operations planning (aggregate planning) involve
Answer: medium-term forecasting.Answer
Q83: Which one of the following does not fall under qualitative forecasting method
Answer: Moving average methodsAnswer
Q84: For which of the following situation(s) is the market research method of forecasting suitable
Answer: when a firm is working with stable technology, planning moderate changes on product innovations or market testing one of its new offerings.Answer
Q85: Which of the following forecasting method is suitable for launching new products
Answer: Judgmental methodsAnswer
Q86: Which of the following method(s) is(are) suitable for forecasting the demand of a product
Answer: Delphi method and judgmental methodAnswer
Q87: What is the measure of forecast error which calculates the average forecast error over n time periods known as
Answer: Mean error (Mean absolute percentage error)Answer
Q88: The measure of forecast error which calculates the average of absolute differences between the actual and the forecast demand over n time periods is known as
Answer: mean absolute deviationAnswer
Q89: The measure of forecast error which calculates the average of square of the forecast errors is known as
Answer: mean-square errorAnswer
Q90: The measure of forecast error which calculates the average of absolute forecast errors as a percentage of the actual demand is known as
Answer: mean absolute percentage errorAnswer
Q91: In order to better serve its customers, a retail store will need to have information on the
Answer: store inventory level, customer demand data and supply lead timeAnswer
Q92: Which functional role does IT not play in SCM
Answer: Supply chain restructuringAnswer
Q93: IT in supply chain transaction execution is concerned with
Answer: collection, generation, and storage of vast data and tracking of the same through automated means.Answer
Q94: IT in supply chain decision support is concerned with
Answer: enabling managers to process and evaluate SCM-related decisions using different optimization techniques.Answer
Q95: IT in supply chain measurement and reporting is concerned with
Answer: measurement of the supply chain performance through data analysis tools.Answer
Q96: Which of the following cannot be categorized under supply chain transaction execution
Answer: Customer relationship managementAnswer
Q97: An ERP system falls under
Answer: Supply chain transaction executionAnswer
Q98: Which of the following does CPFR fall under
Answer: Supply chain collaboration and coordinationAnswer
Q99: Which of the following does not characterize ERP II
Answer: ERP II systems are monolithic and closed.Answer
Q100: DSS in a supply chain helps managers in taking decisions of
Answer: both strategic, tactical and operational levelAnswer
