Intro to buisness practice test 2

One of the reasons for the growing inflation rate in Argentina is due to increases in production costs of goods and services which occurred as a result of a decline in a suitable labor force. This would be an example of a _____ inflation.

cost-push

When demand and supply meet, the price of the product or service is established. This is the point of:

equilibrium

Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.

floating exchange rate

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 nation's _____ GDP.

real

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

Which of the following is an example of an ethical business activity?

The employee reported to his supervisors that a co-worker had misappropriated company funds.

_____ is the quantity of a good or service that people are willing to buy at various prices.

Demand

_____ contributes to an employee's self-worth, which, in turn increases productivity and reduces absenteeism.

Empowerment

At the base of the corporate social responsibility pyramid is:

Utilitarianism

Which of the following statements about utilitarianism is true?

Utilitarianism holds that an action that affects the majority adversely is morally wrong.

Which of the following statements about utilitarianism is true?

Utilitarianism is designed to create both winners and losers.

Which of the following businesses provides its customers with a good?

bicycle manufacturer

Upward and downward changes in aggregate economic activity, as measured by GDP, are called:

business cycles

Individual ownership of property is a key element in:

capitalism

Which of the following is NOT an example of a factor of production?

competition

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

contractionary policy

The Chubb Group, an insurance company, regularly supplies funds for programming on the public television network. Its donations are an example of:

corporate philanthropy

The least costly and least risky method for selling a product on the global market is:

exporting

When the government raises taxes on consumers and businesses, it is dealing with _____ policy.

fiscal

The World Trade Organization (WTO):

has emerged as the world's most powerful institution for reducing trade barriers and opening markets

One of the keys to ethical business behavior is:

how the company's top management conducts themselves

Last year, a mother in a small African nation could buy a pound of flour for the U.S. equivalent of $1.30. Six months ago, an identical pound of flour costs $3.40. Today she would need $5.60 to buy that pound of flour. This example of the general upward movement of prices is called:

inflation

The average price of construction materials increased by 8.1 percent in 2005. The head of the Home Builders Association said it was due totally to increases in lumber, metal, and labor costs. The 8.1 percent increase is probably an example of:

inflation

Which of the following is an example of a factor of production?

labor

A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.

legal but irresponsible

Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:

legality and responsibility

In 2018, if the country of Serbia had imports of $10.58 billion and had an unfavorable balance of trade. This means that Serbia had:

less than $10.58 billion in exports

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

Wal-Mart ran a series of ads in trade journals with the following headline: "We're Looking for Quality Products That Are Guaranteed Not to Last." What Wal-Mart was in fact doing was asking its suppliers to develop more environmentally friendly products and to use material that could be recycled. This concern about the environment is one way that Wal-Mart practice

social responsibility

For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all:

stakeholders

Structural unemployment is unemployment that results from:

the changing structure of an industry

Which one characteristic most clearly defines a market structure

the number of suppliers in a marke

The GDP of Poland in 2006 was approximately $512 billion. This $512 billion represents:

the total value of all final goods and services produced in Poland during 2006

_____ is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries.

Nationalism

Social investing:

is the practice of limiting investments to companies that have ethical policies that match those of the investor

An enterprise in which two or more firms or investors (including governments) share ownership of a business and its property rights is called a(n):

joint venture

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.

justice

_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.

Outsourcing

Which of the following statements about social responsibility is true?

The obligation that a business has to act socially responsible extends beyond the investors in the company to include workers, suppliers, consumers, and communities.

A German law that prohibited the use of hops grown outside of the country in the production of German-made beer was overturned in the late 1980s. This law was an example of a(n)

buy-national regulation

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

capitalism

Understanding the external business environment requires marketers to be aware of:

changes in the law which impact how business is conducted

The _____ for the Music Teacher's National Associations establishes a standard of conduct and recommends a set of responsibilities teachers should have toward students, colleagues and the public. These guidelines assist the professional music teacher in gaining the respect of peers and avoiding conflicts and complaints with students and others. It points out to members what are and what are not considered fair, honest and reasonable practice when dealing with students, colleagues and the public, it provides guidance for such aspects as advertising practices, appropriate relationships, and personal and professional integrity.

code of ethics

In a large metropolitan market, it is relatively easy to set up a law office. The ease of entry explains why you will find hundreds of lawyers listed in the New York City phone book. Each lawyer is a close substitute for another but with slight differences. Which of the following market structures best describes the one in which lawyers operate?

monopolistic competition

With a communist economy system:

none of the above is true

Which of the following factors would most likely result in a shift in the supply curve?

an increase in the price of raw materials used in the production process

A country's _____ is the set of beliefs, values, and social norms shared by members of a society that determines what is socially acceptable.

culture

The slope of the demand curve is:

downward and to the right

The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds although Americans eat this food every day. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of:

protectionism

_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.

Import quotas

Which of the following statements about human rights is true?

None of the above statements about individual rights is true.

_____ is the practice of tying philanthropy closely to the corporate mission or goals and targeting donations to regions where a company operates.

Stakeholders

_____ are all the individuals or groups to whom a business has a responsibility

Strategic giving

Strategic giving:

refers to the practice of tying philanthropy closely to the corporation's mission or goals

The two types of inflation are:

demand-pull and cost-push

A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:

empowered its employees to help customers

Utilitarianism:

is difficult to implement because it is hard to tell how one decision will impact a large number of people

Singapore has granted a(n) _____ on the importation of beer and stout made in the Philippines. This means that beer and stout made in the Philippines can sell for less in Singapore than beer and stout made by New Zealand or the United States.

preferential tariff

Which of the following is an example of an unethical business activity?

All of the above are examples of unethical business activities.

Which of the following statements about ethics training is true?

All of the above statements about ethics training are true.

Which of the following statements about demand and supply curves is true?

All of the above statements about supply and demand curves are true.

What are the benefits associated with free trade and globalization?

An open economy that spurs innovation

_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.

Entrepreneurs

____ is the set of moral standards for judging whether something is right or wrong.

Ethics

Which of the following statements about ethics training is true?

Ethics training is formal training to develop awareness of inappropriate behavior and to practice appropriate responses.

The Northwest Cherry Growers (headquartered in the state of Washington) sells much of its locally grown produce to Taiwan. _____ was the easiest and least expensive way for the growers' association to sell to global markets.

Exporting

_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

Profit

Curtiss Anaya is planning to sell kites on the beach this summer to pay for next year's school expenses. _____ refers to the potential that Curtiss will lose money and waste his time and end up at the end of the summer with not enough money to cover his expenses.

Risk

_____ is the practice of limiting investments to securities in companies that behave in accordance with the investor's beliefs about ethical and social responsibility.

Social investing

Which of the following factors would most likely result in a dramatic change in supply?

a change in the price of raw materials used in the production process

Which of the following businesses provides its customers with a service?

a law office

Social responsibility should extend beyond the shareholders to include:

all of the above

Which of the following would be stakeholders for a manufacturer of agricultural pesticides?

all of the above

Labor, as a factor of production, refers to:

all workers in business

Inflation and interest rates are most closely associated with _____ within the external business environment

economic forces

In 1947, the largest brewer in the U.S., Schlitz, had a 4.57 percent share of the domestic market. (Anheuser-Busch was number four in those days). The top ten brewers, including the number one brewer, had 29.29 percent of the domestic market. Over 70 percent of the domestic market was controlled by "all other" brewers. By the year 2001 the largest brewer was Anheuser-Busch, with a 54.76 share of the domestic market. The top ten brewers held 97.04 percent share of the domestic market in 2001. Thus, the brewing industry in the U.S. became a(n) _____ market structure.

oligopoly

Free trade:

permits people to buy and sell where they please

The highest level of the corporate social responsibility pyramid is:

philanthropic responsibilities

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

Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The belief that this it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with:

utilitarianism

Social responsibility goes beyond obligations provided by law or union contract. Two important aspects of social responsibility are that the obligation is both:

voluntary and broad

In 1998, the Canadian Magazine Publisher's Association (CMPA) predicted the demise of many Canadian magazines because the World Trade Organization (WTO) made it legal for U.S. publishers to introduce product into the Canadian market, without incurring the start-up costs involved in launching a new magazine. By using split-run magazines (modifying the U.S. edition so they contain Canadian ads), U.S. magazine publishers could offer lower rates to advertiser and sell the magazines for less money than Canadian publishers could. According to the CMPA, the U.S. magazine publishers would be engaged in:

dumping

A homebuilder who disposes of asbestos shingles by burying them on his own property may please the home owner because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of his crime. At which stage of the social responsibility pyramid is the builder most likely operating?

economic

It has been alleged that a Coca-Cola water bottling plant in India has caused illegal water shortages in fifty villages that surround the bottler. If this accusation is true, than Coke was operating at which stage of the social responsibility pyramid?

economic

_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.

economic responsibilities

A total prohibition against importing certain products is called a(n):

embargo

Which of the following is an example of a trend in ethics and social responsibility?

strategic giving

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

supply

A(n) _____ is a tax levied by a nation on imported goods.

tariff

The Royal Government of Bhutan imposes a 10 percent tax on all operating tables, examination tables, and dentist's chairs imported into Bhutan. Another name for this type of tax is a(n):

tariff

Fiscal policy is concerned with:

taxation and spending

Hudson Kling mows yards during the summer. Which of the following is an example of revenue for Kling?

the $10 tip Mrs. Pierre gave him for doing such a fine job of mowing her yard

Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle. Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight. This yo-yoing is almost as bad for the body as the excess weight. These weight-loss programs are engaged in _____ behavior.

ethical

When the Federal Reserve implements a(n) ______, it increases the growth of the money supply.

expansionary policy

Alonzo Dwork will not buy stock in a company that sells bottled water because more than 1.5 million barrels of oil are used annually to make the plastic bottles used for water, and nearly 90 percent of these bottles are disposed of after one use. Dwork is a strong believer in environmental protectionism, and this _____ is his way of expressing that belief.

social investing

The most fundamental reason for the growth in world trade is probably due to:

the need for businesses to expand their markets

Within the music industry, four companies (UMG, Sony-BMG, EMI, and Warner) control 90 percent of the music you hear. The music industry operates in a(n) _____ market structure.

oligopoly

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. Kraft donated $2 million to the program's startup. This donation is an example of:

strategic giving

Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with

utilitarianism

The Healing Garden is the manufacturer and marketer of organic beauty aids. Its annual $40,000 donation to The Nature Conservancy in support of the nonprofit organization's pledge to preserve the environment is an example of:

corporate philanthropy