1) Transaction costs include 2) Financial risk is associated with changes in 3) ________ risk involves variation in returns due to the ups and downs of the economy, the industry and the firm. 4) A firm's “normal profit” is best characterized by the 5) A firm earns a normal profit when its total revenues just offset both the ________ cost and ________ cost. 6) How long is the “short-run” time period in the economic analysis of the market? 7) The “law” of demand can be best described by 8) All of the following are non-price determinants of demand except? 9) Which of the following refers to a shift in the demand curve? 10) Two goods are ________ if the quantity consumed of one increases when the price of the other decreases. 11) Economists consider which of the following costs to be irrelevant to a short-run business decision? 12) Costs of production that change with the rate of output are 13) Which of the following is most likely a fixed cost? 14) The distinction between sunk and incremental costs is most helpful in answering which question? 15) The main factor that explains the difference between accounting cost and economic cost is 16) Which of the following markets comes closes to the model of perfect competition? 17) Which of the following characteristics is most important in differentiating between perfect competition and all other types of markets? 18) If a perfectly competitive firm incurs an economic loss, it should 19) Which of the following correctly completes this statement? The monopolist’s marginal revenue 20) Monopoly is characterized by 21) Which of the following industries is most likely to represent the Monopolistic competition market structure? 22) Which of the following represents a good example of an Oligopoly? 23) Mutual interdependence means that 24) In which of these markets would the firms be facing the least elastic demand curve? 25) The four-firm concentration ratio 26) What term describes when a firm is using the least-cost production process? 27) Why are the current health care systems on the rise being built around the integration of clinical information technology and disease management systems? 28) What concept describes the situation where the owner of an asset grants another party the right to use that asset, but the owner retains all controlling rights that are not explicitly stipulated in the contract? 29) What happens when the process by which governance develops exhibits path dependence? 30) What type of strategic alliance involves two or more firms creating and together owning a new independent organization? 31) Which of the following processes is most representative of a vertically integrated firm on the “make” end of the make-or-buy continuum? 32) Which of the following has a downstream relationship with a Toyota Motor Corporation? 33) The biotechnology industry is seeing a broad pattern of disintegration due to the fact that big pharma companies are less and less doing which of the following core functions? 34) What is a market firm? 35) What problem preventing complete contracts refers to a lack of transparency/equal access to the details surrounding a contract? 36) When contracts are incomplete, what must be well defined and enforceable to allow for smooth transactions to occur? 37) Which of the following is not a result of the holdup problem? 38) Which of the following is not considered a rationale for the intervention of government in the market process in the United States? 39) Which of the following is not an example of a cost externality? 40) An example of an activity that is likely to generate benefit (positive) externality is (are) 41) Tying arrangements that lessen competition were made illegal by 42) The delay between when a problem occurs and when it is recognized is referred to as the 43) The delay between when a policy action is taken and when they affect the economy is referred to as the: 44) Which of the following is an example of a government action to internalize a cost externality? 45)Which of the following is responsible for controlling the money supply? 46) Which of the following are risks for multinational corporations but not risks for domestic corporations? 47) The transfer of goods and services by one company to another independent company is referred to as: 48) Risks faced by multinational corporations include 49) The pricing of a product at each stage of production as the product moves through several stages is called 50) What type of firm is one that is already operating in a particular market? 51) What is the term defined as the withdrawal of a product from a market? 52) Which of the following is not an exit barrier for firms in an industry? 53) Which of the following is not a part of the five-forces framework? 54) What term refers to the ability of individual customers to negotiate purchase prices that extract profits from sellers? 55) Which of the following is generally thought of as a supplier in the hospital industry? 56) Which of the following is not a barrier to entry in professional sports markets? 57) What term describes the situation when a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market? 58) What type of good is one whose quality is relatively easy to evaluate before purchase? 59) Which of the following is a capability? 60) What term coined by Michael Porter describes a firm that pursues elements of cost leadership and benefit leadership at the same time and in the process fails to achieve either a cost advantage or a benefit advantage?