Question: Which two scope baseline tools are completed prior to publishing the project’s schedule baseline?
Choose 2 answers
Answer Options:
Responsibility assignment matrix (RAM)
Work breakdown structure (WBS)
Project team directory
Resource breakdown structure (RBS)
Project business case
Project scope statement
Answer: Work breakdown structure (WBS)
Project scope statement
Question: A headline reads, “Lumber Prices Rise Sharply.” In a competitive market, this situation would lead to a(n):
Answer Options:
a) Increase in the demand for new homes, causing home prices to rise.
b) Increase in the supply of new homes, causing home prices to fall.
c) Increase in the supply of new homes, causing home prices to rise.
d) Decrease in the supply of new homes, causing home prices to rise.
Answer: d) Decrease in the supply of new homes, causing home prices to rise.
Question: If a large increase in the price of salt does not change the quantity of salt purchased very much, we say that the demand for salt is:
Answer Options:
a) Elastic.
b) Inelastic.
c) Unit elastic.
d) Unitary.
Answer: b) Inelastic.
Question: Which approach can a project manager use for developing a calendarized budget to reflect timing of expenditures?
Answer Options:
a. Expert
b. Three-point
c. Bottom-up
d. Top-down
Answer: c. Bottom-up
Question: Which activity is accomplished as part of the executing process of a project?
Answer Options:
a. Assessing budget performance
b. Acquiring project team members
c. Paying the outstanding vendor invoices
d. Creating the network diagram
Answer: b. Acquiring project team members
Question: The opportunity cost of going to college is:
Answer Options:
a) The money one spends on college tuition, books, and so on.
b) The time one spends in studying.
c) The highest valued alternative one forfeits to attend college.
d) The least valued alternative one forfeits to attend college.
Answer: c) The highest valued alternative one forfeits to attend college.
Question: A couple is planning an outdoor summer wedding at a popular resort. There is a chance of rain on the wedding day. The wedding planner makes arrangements to move the wedding to a smaller indoor function room at the resort in the event of inclement weather.
What strategy is the wedding planner using to address the risk of rain on the wedding day?
Answer Options:
a. Risk Avoidance
b. Risk Mitigation
c. Risk Transference
d. Risk Acceptance
Answer: b. Risk Mitigation
Question: A production possibilities frontier shows:
Answer Options:
a) The maximum level of satisfaction that can be achieved given existing levels of resources and technology.
b) The minimum level of satisfaction that can be achieved given existing levels of resources and technology.
c) The different combinations of goods that can be produced with available resources and existing technology.
d) The different combinations of goods that cannot be produced with available resources and existing technology.
Answer: c) The different combinations of goods that can be produced with available resources and existing technology.
Question: A monopolist can sell 25 toys per day for $6.50 each. To sell 26 toys per day, the price must be cut to $6.00. The marginal revenue of the 26th toy is:
Answer Options:
a) $6.
b) $26.
c) -$0.50.
d) -$6.
Answer: c) -$0.50.
Question: Farmer Jones is producing wheat and must accept the market price of $6.00 per bushel. At this time, her average total costs and her marginal costs both equal $5.00 per bushel. Her minimum average variable costs are $3.50 per bushel. In order to maximize profits or minimize losses in the short run, farmer Jones should
Answer Options:
a. Continue producing, but reduce output.
b. Increase selling price.
c. Increase output.
d. Produce zero output and shut down.
Answer: a. Continue producing, but reduce output.
Question: Integrated Materials, Inc. is initiating a project to replace its mainframe computer systems. While discussing the software specifications with the IT Director, the Project Manager concludes there is significant risk of cost overruns as a result of enhancements. What can the Project Manager do to avoid the risk of cost overruns?
Answer Options:
a. Authorize overtime in the IT department
b. Outsource the software development
c. Gain approval to reduce the scope
d. Hire additional programmers for the Project
Answer: c. Gain approval to reduce the scope
Question: Which of the following is not an example of a market?
Answer Options:
a) The New York Stock Exchange.
b) An auction.
c) A garage sale.
d) The Internal Revenue Service (IRS).
Answer: d) The Internal Revenue Service (IRS).
Question: The individual with entrepreneurial abilities must be able to:
Answer Options:
a) Bear the risk of failure.
b) Innovate products and processes.
c) Organize resources to produce goods and services.
d) All of the above.
Answer: d) All of the above.
Question: Suppose that a business incurred implicit costs of $400,000 and explicit costs of $4 million in a specific year. If the firm sold 100,000 units of its output at $48 per unit, its accounting:
Answer Options:
a) profits were $800,000 and its economic profits were $400,000.
b) losses were $0 and its economic losses were $800,000.
c) profits were $400,000 and its economic profits were $800,000.
d) profits were $400,000 and its economic profits were $0.
Answer: a) profits were $800,000 and its economic profits were $400,000.
Question: Which of the following will cause an increase in the demand for DVD players?
Answer Options:
a) A decrease in the price of DVDs.
b) A decrease in the price of DVD players.
c) An increase in the price of DVDs.
d) A decrease in consumer incomes.
Answer: a) A decrease in the price of DVDs.
Question: The term “ceteris paribus” means:
Answer Options:
a) That when the price of a good falls, other things equal, the quantity demanded rises.
b) That when the price of a good falls, other things equal, the quantity supplied falls.
c) That all other things are held constant except the one under consideration.
d) That all other things are not held constant except the one under consideration.
Answer: c) That all other things are held constant except the one under consideration.
Question: In pure competition, if the market price of the product is lower than the minimum average total cost of the firms, then:
Answer Options:
a) other firms will enter the industry and the industry supply will decrease.
b) some firms will enter the industry and the industry supply will increase.
c) some firms will exit the industry and the industry supply will increase.
d) other firms will exit the industry and the industry supply will decrease.
Answer: d) other firms will exit the industry and the industry supply will decrease.
Question: A pure monopolist is producing an output such that ATC = $7, P = $9, MC = $6, MR = $5, and AVC = $5.50. This firm is realizing:
Answer Options:
a) an economic profit that could be increased by producing less output.
b) an economic loss that could be reduced by producing less output.
c) an economic loss that could be reduced by producing more output.
d) an economic profit that could be increased by producing more output.
Answer: a) an economic profit that could be increased by producing less output.