Practice Quiz

MTEL Business Practice Exam - Question List

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46.
Which of the following best explains why the U.S. automobile industry is considered an oligopoly?
  1. The cost of owning an automobile is greater than ten percent of an average family's income.
  2. The automobile industry is one of the top three industries in the United States in terms of its contribution to the gross domestic product.
  3. Seventy-five percent of automobile sales are accounted for by the four largest firms in the industry.
  4. Automobiles are sold to consumers through independent dealerships rather than directly from the manufacturer.
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47.
A rise in production costs that is passed along to the consumer in the form of a significant price increase would likely lead to the greatest reduction in demand for which of the following products?
  1. New houses
  2. Wheat
  3. Detergent
  4. Pencils
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48.
A jewelry store has operated in a small town for over 30 years and has always turned a reasonable profit without resorting to sales or other types of marketing promotions. Which of the following events would most likely cause store managers to rethink this strategy and significantly increase the amount of resources allocated to promoting the store's products?
  1. Store managers are planning to renovate the store and add better lighting and new display cabinets.
  2. Price increases for several types of precious stones make it unfeasible for the store to carry certain items.
  3. Store managers expect that short-term demand for the store's products will increase.
  4. An outlet for a discount chain of jewelry stores has opened up in a neighboring town.
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49.
A company produces catalytic converters for the automobile industry. Each converter contains a small amount of platinum as a catalyst. If the supply curve for platinum shifts to the left, the company that makes the converters would most likely respond by:
  1. Raising the price of each converter.
  2. Reducing the amount of platinum in each converter.
  3. Increasing production of converters.
  4. Offering new customers discounts on purchases of its converters.
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50.
Which of the following will occur if consumption, as a percent of gross domestic product (GDP), decreases and there are no other offsetting changes?
  1. Employment levels will decrease.
  2. Inflation will increase.
  3. Inventories will decrease.
  4. Production will increase.
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