Chapters 1-4

Because of scarcity, every economic decision involves

A trade-off

Government plays a role in which type of economy?

All Economies

When the Federal Reserve implements a __, it tightens the money supply by selling government securities or raising interest rates

Contractionary policy

Which of the following statements about those people designated by demographics as Generation X is true

Generation X members are savvy and cynical consumers

The basic inputs used in producing all goods and services are

Labor, Capital, and natural resources

Economic Scarcity arises basically from

Limited resources and expanding wants

The purchase of savings bonds by individuals allows the U.S. government to

Make sure that the burden of the national debt is spread more equitably

Code of ethics-

May be influential in determining a person's decision-making behavior

__ occurs when parties agree to present their case to an impartial third party but are not required to accept the decision as binding

Mediation

A market in which there are a large number of firms that differentiate their products is called

Monopolistic competition

The Clayton Act, the Cellar-Kefauver Act, and the Federal Trade Commission Act were all intended to

Promote Competition

When the price of gasoline rises by 40 percent, but your salary remains the same, it is an example of a decline in your

Purchasing Power

When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values. This adjusted GDP is called the nations __ GDP

Real

Walmart has announced that it will only sell fresh and frozen fish that come from environmentally sound sources and bear the label of the Marine Stewardship Council. Walmarts size give it a unique opportunity to improve the fishing industry. This concern for __ is one of many initiatives Walmart is introducing to improve our environment.

Social responsibility

A state law that requires all children weighing less than fifty pounds to ride in a properly secured car seat is an example of ___ law

Statutory

Archer Daniels Midland Co. (ADM) has joined with Baron Spices and Seasonings to market spices, seasonings and herbs to the foodservice industry. ADM will provide the raw materials, and Baron will act as the distributor and use its already existing relationships with participants in the food service industry to make success of this

Strategic alliance

Kraft Foods Inc. joined with the National Latino Children's Institute to announce Salsa, Sabor y Salud- a first of its kind healthy lifestyles educational program designed by Latinos for Latinos. The program was created by NLCI in partnership with Kraft to support Hispanic families, a population particularly at risk for obesity and accompanying health problems. Krft donated $2 million to the program's startup. This donation is an example of

Strategic giving

The quantity of a product or service that businesses will make available at various prices is called

Supply Curve

A country's output of goods and services that people can buy with the money they have is a standard of living.

True

An increase in the price of crude oil could trigger cost-push inflation

True

Belinda Asher works in a vegetable processing plant and is out of work about six months a year due to the periodic harvest times. She can be described as seasonally unemployed.

True

Businesses engage in environmental protection activities to show their responsibility to their general public stakeholders

True

Demography is the study of people's vital statistics, such as their age, gender, race and ethnicity, and location.

True

It is a firm's responsibility to its customers to deliver what it has promised

True

Monopolistic competition is a market structure in which entry is easy

True

Multinational companies must balance the conflicting interests of stakeholders when making decisions regarding social responsibilities, especially in the area of human rights.

True

Organizations can be evaluated on two basic dimensions with regard to social responsibility- legality and responsibility

True

Regardless of the career path you choose understanding business is important to your success.

True

Social factors influence the products people buy, the prices they pay, the effectiveness of specific promotions, and how, where, and when people expect to purchase products

True

Socialism is an economic system in which the basic industries are owned either by the government itself or by the private sector under strong government control.

True

The Uniform Commercial Code (UCC) sets forth the rules that apply to commercial transactions between businesses and between individuals and businesses

True

The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society

True

The national debt is the accumulation of deficits that have occurred in the past as a result of government expenditures exceeding tax revenues.

True

Which of the following countries has a high standard of living

U.S.

Which of the following statements about utilitarianism is true?

Utilitarianism holds that an action that affects the majority adversely is morally wrong. Utilitarianism is designed to create both winners and losers

The Uniform Commercial Code is a type of __ law

Business

An economic system based on competition in the marketplace and private ownership of the factors of production is known as

Capitalism

When Allie Rodriguez went to buy plants, she saw a sign that said any plants that failed to thrive could be returned for a complete refund. This is a __ warranty.

Express, express warranties are specific statements of facts or promise

A farmer's market where sixty farmers come weekly to sell the produce they grow in their gardens is an example of monopolistic competition

False

Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior

False

Gross domestic product is the sum of all countries output

False

A responsible multinational company develops its ethical guidelines in its home country and relies on those no matter where it does business

False, a responsible multinational company realizes it must respect local practices and customs

If the company wants employees to take ethical training seriously, the training should not include games

False, organizations find numerous ways to encourage ethical behavior including leading by example and offering ethics training programs

A trademark gives a company exclusive right to use a design, name, or other distinctive mark to identify its products. The federal government protects this right.

False, the trademark holder must protect its rights, this is not a task of the federal government.

As a factor of production, capital includes money

False- Capital is all the inputs used to produce goods and services and get them to the customer.

When Raoul Welsh is evaluating the construction industry in terms of interest rates, employment cycles, and the rate of new home building nationwide, he is looking at microeconomics.

False- Microeconomics focuses on individual parts of the economy

Tyron Lewis has recently quit his job in the administrative offices at the nearby hospital and is currently seeking a retail management position. He would be describes as structurally unemployed.

False- frictionally unemployed

Legal challenges arising from laws designed to control anticompetitive behavior occur in monopolistic competition.

False- oligopolies