Economics - Part 1

Question 1

A travel agency advertises a week’s Last-minute trips from Stockholm to Gran Canaria for 2,999 SEK, with departure in one day. What type of pricing model has the travel agency presumably used?

a). Value-based pricing
b). Market price
c). Cost plus pricing
d). Variable costs + contribution margin

Answer 1

c) Cost plus pricing
(Självkostnad + vinstpålägg)

Question 2

Which of the following is NOT an example of benchmarking?

a). Study visit to a factory
b). Interviews with representatives of industry organizations
c). TV advertising campaign
d). Testing of various products

Answer 2

c). TV advertising campaign

Question 3

In what type of production is reasonably occurring in a factory that manufactures matches (including packaging in matchboxes)?

a). Single-piece production
b). Batch production
c). Mass production
d). Continuous production

Answer 3

d). Continuous production

Question 4

Which of the following would NOT be classified as waste according to Lean Production in a pizzeria?

a). The baker retrieves a bowl of tomato sauce from a refrigerator in the basement
b). The baker performs measurements on the pizza oven’s temperature
c). The baker adds extra mushrooms to a Capricciosa pizza
d). The employee responsible for delivering pizzas to customers collects ten customer orders before leaving to make the delivery

Answer 4

b). The baker performs measurements on the pizza oven’s temperature

Question 5

Which of the following fits as a typical description of an AGILE approach in product development projects?

a). Creating a sense of security even if resources are running out or there is a shortage of time towards the end of the project
b). Planning each development step very carefully in advance and being prepared for different scenarios
c). Experimenting, exploring, and taking greater risks than in traditional product development
d). Considering the market and involving the customer to an unusually high extent

Answer 5

d). Considering the market and involving the customer to an unusually high extent

Question 6

A company that wants to minimize its capital commitment should…

a). Order raw materials frequently
b). Create safety stocks to secure the availability of materials at each production stage
c). Offer customers a late order point
d). Create a functional layout in production

Answer 6

a). Order raw materials frequently

Question 7

What are the three dimensions of sustainable development?

a). Ethical, social, and economic
b). People, technology, and environment
c). Ecological, economic, and social
d). Climate, stakeholders, and economic

Answer 7

c). Ecological, economic, and social

Question 8

Goal 17 of the Sustainable Development Goals is called “IMPLEMENTATION AND GLOBAL PARTNERSHIP.” What is the main purpose of this goal?

a). To globalize the world as much as possible
b). To implement partnerships with the world
c). All global goals can become reality only through global cooperation
d). To exchange knowledge with each other

Answer 8

c). All global goals can become reality only through global cooperation

Question 9

Which of the following eco-labels is NOT based on third-party certification?

a). Type 1 - Ecolabeling
b). Type 2 - Self-declarations
c). Type 3 - Environmental declarations
d). None, all eco-labels are based on third-party certification

Answer 9

b). Type 2 - Self-declarations

Question 10

Which of the following areas is NOT a focus area for ISO 26000 (organizational responsibility)? Please select the option that you believe fits best in this case.

a). Charity
b). Environment
c). Working conditions
d). Human rights

Answer 10

a). Charity

Question 11

Corruption is an important concept within CSR. Which of the following statements is an example of corruption?

a). An employee is promoted based on performance and achieved goals
b). A company recruits new employees according to predetermined criteria
c). A company sets requirements for working conditions in its value chain
d). A municipality procures construction projects and only shows documents to those who pay the clerk

Answer 11

d). A municipality procures construction projects and only shows documents to those who pay the clerk

Question 12

Why is biodiversity important?

a). It negatively affects human well-being
b). It ensures the stability and resilience of ecosystems
c). It increases economic growth
d). It promotes the emissions of greenhouse gases

Answer 12

b). It ensures the stability and resilience of ecosystems

Question 13

It is common for companies to utilize external expertise in their operations. What is the main reason for this?

a). Skill supply.
b). Skill shortage.
c). Flexibility.
d). Cost savings.

Answer 13

d). Cost savings.

Question 14

What does the Co-Determination Act (MBL) mean for the employee?

a). Right to relocation in case of changed tasks.
b). Influence over the formulation of holiday conditions.
c). Right to information and consultation in case of changed job content.
d). Influence over work being conducted according to prevailing labor law.

Answer 14

c). Right to information and consultation in case of changed job content.

Question 15

Which of the following is correctly linked to a value chain?

a). A company always strives to increase its own part of the value chain
b). There is always the most value added closest to the end customer
c). A company must work with both outsourcing and insourcing
d). Vertical integration means that a company takes care of a larger part of its value chain

Answer 15

d). Vertical integration means that a company takes care of a larger part of its value chain

Question 16

What is NOT true about the “laggards” group related to the innovation diffusion lifecycle?

a). Also called technology skeptics
b). Consider it important not to follow trends
c). Do not switch to new technology until it is technically or economically necessary
d). Are technologically conservative and prefer to maintain the status quo

Answer 16

b). Consider it important not to follow trends

Question 17

Where in the Boston Matrix can a product be placed that is in the growth stage but does not yet have a large market share?

a). Question mark
b). Unknown
c). Cash cow
d). Star

Answer 17

a). Question mark

Question 18

Which of the following is NOT an example of conventional leadership?

a). Demand and Reward
b). Control
c). Laissez-Faire
d). All of the above are examples of conventional leadership

Answer 18

c). Laissez-Faire

Question 19

Equality is about both men and women. Why is it still the case that equality efforts within industry and supply chains mostly seem to focus only on women?

a). In experience, men find equality to be an awkward subject.
b). In experience, equality is a theme that fits women’s psyche.
c). In experience, women’s situation otherwise gets overlooked.
d). Men do not need equality.

Answer 19

c). In experience, women’s situation otherwise gets overlooked.

Question 20

When did women start working in the industry?

a). When China and other Asian countries became dominant in the manufacturing industry.
b). During World War II when men were needed in the military and defense.
c). During the 1970s when gender equality became popular.
d). When the Industrial Revolution started in the 18th century.

Answer 20

d). When the Industrial Revolution started in the 18th century.

Question 21

Spence’s game theory states that an employer assesses job applicants based on signals and cues. What does he mean by cues?

a). Competencies that an individual can invest in, such as education, work experience.
b). External characteristics that each individual possesses, such as gender, dialect.
c). 50% of an individual’s personal competence.
d). Areas that need improvement by providing decision-makers with detailed information.

Answer 21

b). External characteristics that each individual possesses, such as gender, dialect.

Question 22

Where do you find the following definition of equality: “Equal treatment of women and men”?

a). Sweden’s national gender equality goals.
b). European Institute for Gender Equality index.
c). Mike Spence’s game theory.
d). ISO 26000.

Answer 22

a). Sweden’s national gender equality goals.

Question 23

What is meant in EIGE’s index by “intersecting forms of inequality”?
a). How country of birth and family type intersect.
b). How factors such as disability, age, education level, country of birth, and family type intersect with gender to create different paths in women’s and men’s lives.
c). How equality, age, and education level intersect to create wage gaps between women and men.

Answer 23

b). How factors such as disability, age, education level, country of birth, and family type intersect with gender to create

Question 24

To grasp the issues of gender equality in the industrial economy, you need to be able to navigate through the tangle of statements circulating. Why?

a). To be able to say what is politically correct.
b). Because it’s a legal requirement.
c). To be able to identify relevant facts.
d). Because it’s included in the national gender equality goals.

Answer 24

c). To be able to identify relevant facts.

Question 25

GRI is an abbreviation for a non-profit organization that provides a framework, a framework for what?
A framework..

A) for fair working conditions
B) to ensure compliance with national legislation and international standards
C) that contains criteria for eco-labeling
D) for reporting sustainability efforts

Answer 25

D) A framework for reporting sustainability efforts

Question 26

Which current international agreement focuses on combating climate change?

A) The Paris Agreement
B) North American Free Trade Agreement (NAFTA)
C) The Kyoto Protocol
D) North Atlantic Treaty Organization (NATO)

Answer 26

A) The Paris Agreement

Question 27

Which of the following options is NOT desirable in a circular economy?

A) Increased resource consumption
B) Extraction of energy from recycled goods
C) Reuse of goods
D) Increased amount of goods deposited

Answer 27

A and D

A) Increased resource consumption
D) Increased amount of goods deposited

Question 28

Goal 1 of the Sustainable Development Goals is called “no poverty.” There, the concept of “multidimensional poverty” is explained. What does it mean?

Poverty that..
A) besides economics, involves deficiencies in health and education
B) involves economics, lack of freedom, influence, health, education, and security
C) involves multiple ethnicities
D) only includes economic measures

Answer 28

B) involves economics, lack of freedom, influence, health, education, and security

Question 29

Which of the following standards focuses on organizations’ social responsibility?

A) ISO 26000
B) ISO 14001
C) ISO 9001
D) ISO 37001

Answer 29

A) ISO 26000

Question 30

Which of the following strategies is reasonable to assume that companies such as: Ö&B, Rusta, Lidl, and Byggmax use?

A) Overall cost leadership
B) “Stuck in the middle”
C) Value maximization
D) Product leadership

Answer 30

A) Overall cost leadership

Question 31

The purpose of a company’s operations, or expressed in another way as the company’s “mission” is typically formulated in a…

A) Mission
B) Strategy
C) Business model
D) Vision

Answer 31

A) Mission

Question 32

Which of the following formulated goals fulfills the “T” in SMART goals?

A) Incidents and accidents at our workplace should be reduced by 10%
B) Incidents and accidents at our workplace should be reduced
C) The number of incidents and accidents at our workplace should have been reduced by 10% by the end of 2024 compared to 2023
D) Managers and employees have agreed that incidents and accidents at our workplace should be reduced by 10%

Answer 32

C) The number of incidents and accidents at our workplace should have been reduced by 10% by the end of 2024 compared to 2023

Question 33

Which of the following options corresponds to the first stage in the IMGD model?
IMGD = “Integrative Model of Group Development” (Wheelan 2010)

A) Belongingness and safety
B) Trust and structure
C) Work and productivity
D) Opposition and conflict

Answer 33

A) Belongingness and safety

Question 34

Which of the following statements is TRUE regarding collective agreements?

A) Collective agreements should not contain agreements on working hours and wages: these are regulated in individual employment contracts
B) Collective agreements create a framework for the terms in individual employment contracts
C) Collective agreements are signed between employers and employees
D) The employee can choose whether he/she wants to be covered by the existing collective agreement

Answer 34

B) Collective agreements create a framework for the terms in individual employment contracts

Question 35

“The developmental leadership”
Which of the following leadership behaviors is included in developmental leadership?

A) Laissez-Faire
B) Inspiration and motivation
C) Control
D) Demand and reward

Answer 35

B) Inspiration and motivation

Question 36

Which of the following statements is correct regarding a product?

A) A product can be a pure good or a pure service
B) Product is a synonym for the word “service”
C) A product consists of a good
D) A product means that a good and a service have been combined

Answer 36

A) A product can be a pure good or a pure service

Question 37

Which of the following statements is correct regarding a company’s business model?

A) The business model should visualize revenues, production costs, and results for a company
B) A business model should exclusively describe how a company charges for its product
C) The business model should describe how the company creates, delivers, and captures value
D) The business model primarily describes how the product should be delivered to the customer

Answer 37

C) The business model should describe how the company creates, delivers, and captures value

Question 38

What is illustrated in the “Gartner Hype Cycle”?

A) Revenues and costs associated with new technology illustrated over time
B) Expectations of new technology illustrated over time
C) The challenge of implementing new technology illustrated over time
D) The historical usefulness of new technology illustrated over timev

Answer 38

B) Expectations of new technology illustrated over time

Question 39

Which of the following options aligns as a typical characteristic of the business-to-business market (B2B)?

A) B2B is characterized by a low degree of formalization
B) B2B is characterized by an asymmetric negotiation power where the parties’ power is equal
C) B2B is characterized by many small customers
D) B2B is characterized by few deep customer relationships

Answer 39

D) B2B is characterized by few deep customer relationships

Question 40

Assume your company operates in a market that requires immediate deliveries, how should the customer order point be positioned?

A) Production to stock (make to stock)
B) Manufacturing to customer order (assembly to order)
C) Procurement to customer order (resource to order)
D) Production to customer order (make to order)

Answer 40

A) Production to stock (make to stock)

Question 41

In product development, the “development funnel” is sometimes used to symbolize the logic within the company’s product development process. Which of the following options represents the logic of the development funnel?

A) The funnel symbolism is intended to visualize that the number of finished launched products has no clear connection to the number of initial ideas.
B) Many good ideas initially allow poorer ideas to be filtered out, resulting in few good and finished products.
C) Few good ideas initially can be converted into many good finished products through structured product development projects.
D) Many good ideas initially to potentially generate even more good finished products.

Answer 41

B) Many good ideas initially allow poorer ideas to be filtered out, resulting in few good and finished products.

Question 42

What advantages does a company gain from investing in female employees, according to the Ethical Trading Initiative organization?

A) Cost savings, access to new talents and markets, high-quality employees
B) Work, money, knowledge, time, power, health
C) Sustainable development
D) Better atmosphere in the workplace

Answer 42

A) Cost savings, access to new talents and markets, high-quality employees

Question 43

In today’s discussions about equality and diversity in companies and organizations, the term “norm” is common. But what does the word “norm” mean? Choose the option that does NOT define norm.

A) Natural law
B) Guideline
C) Role model
D) Benchmark

Answer 43

A) Natural law

Question 44

The Nobel Prize in Economics 2023 has been awarded to Claudia Goldin. Which of the following 4 statements is consistent with her research findings?

A) If women’s expectations of a career are based on how previous generations have fared, it will take a long time before the workplace is gender-equal.
B) Goldin’s research shows that companies’ financial performance is 33% better in cases where the companies are gender-equal.
C) Gender equality in the workplace tends to arise spontaneously as long as companies do not oppose gender equality.
D) The positive development in the field of gender equality in companies tends to always be the merit of women.

Answer 44

A) If women’s expectations of a career are based on how previous generations have fared, it will take a long time before the workplace is gender-equal.

Question 45

Spence’s game theory states that an employer evaluates job applicants based on signals and cues. What does he mean by cues?

A) Areas that need improvement through decision-makers being provided with detailed information
B) 50% of an individual’s personal competence
C) Competence that an individual can invest in, such as education, work experience
D) External characteristics that every individual has, such as gender, dialect, skin color

Answer 45

D) External characteristics that every individual has, such as gender, dialect, skin color