BUSN TEST 1

A decline in real GDP that lasts for two consecutive quarters is called a(n):

recession

refers to a government's programs for controlling the amount of money in circulation.

Monetary policy

Think about all the restaurants that are located near your campus. You have probably noted some new ones appearing, and others closing because of lack of business. What type of competition exists in the restaurant business?

Monopolistic competition

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.

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.

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.

Utilitarianism

Which of the following statements about utilitarianism is true?

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

The original purpose of the was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

World Bank

In Canada, the government owns the communications, transportation, and utilities industries, while most other activity is carried on by private enterprise. Canada is an example of:

a mixed economy

Social responsibility should extend beyond the shareholders to include:

all of the above

Which of the following is a characteristic of pure competition?

all of the above

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

all of the above

The government does not consider full employment to mean 100 percent of its citizens are employed because:

all of the above conditions can and do exist RATIONALE: The unemployment rate is the percentage of the total labor force that is actually looking for work but is not actually working

Individual ownership of property is a key element in:

capitalism

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

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply, then both countries are exercising the principle of:

comparative advantage

Venezuela can grow and sell cut flowers for floral bouquets more easily and more cheaply than most other countries can produce the same flowers. When it comes to flowers, Venezuela has a(n):

comparative advantage

A(n) _ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.

federal budget deficit

A country that imports more goods than it exports is said to have a(n):

unfavorable balance of trade

The slope of the supply curve is:

upward and to the right

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

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

The most basic measure of economic growth is the:

Gross domestic product

Labor, as a factor of production, refers to:

all workers in business

The is the total amount of money that flows in and out of a country.

balance of payments

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

business cycles

Corporate philanthropy:

can be either a cash or a noncash donation

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

capitalism

In 1997, Russia and Ukraine exported carbon steel plate into the U.S. at a price much lower than the countries were found guilty of charging the identical steel in their home markets. Russia and Ukraine were 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

At the base of the corporate social responsibility pyramid is:

economic responsibilities

One of the keys to ethical business behavior is:

how the company's top management conducts themselves

A code of ethics:

is accurately described by all of the above

Utilitarianism:

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

Social investing:

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

Imagine you are trying to gather the information needed to calculate the balance of payments for an Eastern European country. To do your calculations, you would need to have information on all of the following EXCEPT:

its corporate tax rates

AT&T entered into a _with Compagnie General d'Electricite, a French company. The French company brings its patents on digital telephone switches, and AT&T provides the marketing know-how to the relationship.

joint venture

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

justice

With a communist economy system:

none of the above is true

U.S. Steel has established an alcoholic rehabilitation program for the city of Pittsburgh. The company provides the facilities and the personnel to operate the program. U.S. Steel is practicing:

social responsibility

Wal-Mart 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. Wal-Mart's size gives it a unique opportunity to improve the fishing industry. This concern for is one of many initiatives Wal-Mart is introducing to improve our environment.

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

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

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

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

Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper, At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. What was Souza's profit for her summer job?

$125

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

A good is tangible, and a service is intangible.

When a single firm accounts for 100 percent of industry sales, it is an example of:

A pure monopoly

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.

is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

Corporate philanthropy

inflation is triggered by increases in production costs which increase the costs of final goods and services.

Cost-push

inflation is inflation that occurs when the demand for goods and services is greater than the supply.

Demand-pull

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

Empowerment

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

Entrepreneurs

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

Equilibrium

Which of the following statements about human rights is true?

None of the above statements about individual rights is true,

In a(n). ----- a few sellers can exert substantial control over prices.

Oligopoly

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

Outsourcing

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

Codes of ethics:

Social responsibility B. Business ethics C. Consumerism D. The marketing concept E. Business morality

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

Stakeholders

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

Strategic giving

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

corporate philanthropy

When the economy is in a recession, many companies must lay off workers, which causes unemployment.

cyclical

Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n):

direct foreign investment

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

embargo

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

Summer Dean was walking through the mall and found a gym bag lying on the ground. The decision Dean must make as to whether to keep the gym bag and its contents for herself or turn it into the mall's lost and found department involves:

ethics

When Ted Giovanni was preparing for his trip to Brazil, he found that he could go to his bank and trade his 10 U.S. dollars for 37.11 Brazilian real (the nation's currency). In this instance, the was one U.S. dollar to 3.711 Brazilian real.

exchange rate

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

exporting

Capital Radio PLC, the United Kingdom's biggest commercial radio firm announced in 2002 that it would cooperate with Walt Disney Co. to create a radio network for children under the age of 16. The company will broadcast to a potential audience of 25 million under the name Capital Disney. This new radio network will be created as the result of:

joint venture

Laws have curtailed Rather than fighting the smoking, and as a result, the sale of cigarettes is down. law, the cigarette industry is looking for ways to take their business beyond cigarettes. Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown the last decade. In terms of the social responsibility pyramid, at which level is consistent sales gains over the cigarette industry operating?

legal

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.

legal but irresponsible

The implementation of a contractionary policy by the Federal Reserve would result in:

lower inflation

The standard of living in any country is:

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

Because the government owns the factors of production in public lands, postal service, and some water resources, Great Britain is considered a(n):

mixed economy

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

monopolistic competition

Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production?

natural resources

An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n):

oligopoly

A company has achieved the level of responsibilities when it has met its ethical, legal, and economic responsibilities.

philanthropic

Laws passed by the U.S. Congress concerning how U.S. businesses trade with Cuba would be an example of ----- factors that influence the business environment.

political and legal

Today companies are focusing on which involves building, maintaining, and enhancing interactions with customers and other parties so as to develop long-term satisfaction through mutually beneficial partnerships.

relationship management

A group of investors in a retirement fund removed their money from the fund when they learned the fund manager had invested in a gambling casino. The investors' religious beliefs lead them to believe in the fundamental evil of all forms of gambling. These investors were engaging in:

social investing

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 a success of this:

strategic alliance

Seeds of Change manufactures and markets certified organic entrees. Its mission reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." In support of this mission, the company donates money to support environmental protection activities. In other words, Seeds of Change engages in:

strategic giving

The Home Depot supplies all the materials and the labor expertise for Habitat Homes in various regions of the country where the retail giant has a store. Its top management believes that this type of philanthropy better reflects the company's commitment to the community than simple donations to the American Cancer Society and similar national charities. The Home Depot is using the practice of:

strategic giving

The laborers displaced due to assembly line automation at the textile plant may not have the skills needed to operate the computerized machines that replaced them. This is an example of unemployment.

structural

Which of the following countries has a high standard of living?

the United States

are laws that require a company earning foreign currency from its exports to sell the foreign currency to a control agency, usually a central bank.

Exchange controls

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

Expansionary policy

In a the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economic system

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

fiscal

A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:

free trade

Nations sometimes form free-trade associations and establish areas where there are few, if any, export and import duties or other regulations that would act as barriers to trade among partners. These are called:

free trade zones

Which of the following is the best example of a good?

the birthday candles you purchased to go on your sister's birthday cake

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

the need for businesses to expand their markets

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play