MG201 Final Exam - Pete

84. For most of history wealth was rarely created; it was most often stolen or otherwise expropriated. a. Much of the natural environment was a fixed, limited resource. b. People lived exclusively off the land and the natural resources it produced. c. Mother Nature provided a garden of renewable, natural abundance. d. Life was primarily a struggle to nurture Mother Nature while combatting her excesses. e. The Industrial Revolution changed all that by suppressing Mother Nature.

a. Much of the natural environment was a fixed, limited resource.

56. In his TED talk to demonstrate progress in the world, the late Hans Rosling asked the audience: a. "How many of you hand-wash your jeans and your bed sheets?" b. "Would you surrender your smart phone to save the environment?" c. "How many of you purchased a fuel-efficient automobile this year?" d. "How many of you purchased a piece of new clothing this past month?" e. "Would you be willing to give up some of your progress to share it better with the poor?

a. "How many of you hand-wash your jeans and your bed sheets?"

91. Matt Ridley claimed, "_____________ is proving to be expensive and damaging to the environment as well as the economy." a. Global warming is slow and mild and renewable energy b. Globalization c. The climate science consensus d. Global political pressures to achieve carbon credits

a. Global warming is slow and mild and renewable energy

6. ___________________________ create a context for management and leadership. a. History, culture, and technology b. Politics, economics, and geography c. Organizational behavior, power and influence d. Stewardship, accountability and influence

a. History, culture, and technology

24. "In the United States you look at the guy that lives in the mansion on the hill, and you think, you know, one day, if I work really hard, I could live in that mansion. In Ireland, people look up at the mansion on the hill and say, one day, a. I'm going to get that bastard." b. that house will be mine." c. the government will own that home and I will live in it." d. three families will occupy that house."

a. I'm going to get that bastard."

32. In his talk on health and inequality, Wilkinson asked, "What about causality? Correlation in itself doesn't prove causality." He concluded, a. People know the causal links quite well in some of these outcomes. b. There are numerous studies that prove the causal relationship. c. Causality should be irrelevant. What is important is the relationship. d. We should assume causality, because that is the only fair way. e. But in this case, correlation does prove causality.

a. People know the causal links quite well in some of these outcomes.

18. Which of the following are two of the seven key leader behaviors? a. Use positive reinforcement. Use a constructive form of punishment. b. Set high standards for all employees. Award bonuses on an annual basis. c. Punish mistakes promptly and in private. Allow teams great freedom to decide. d. Set high goals for low-level employees. Provide contingent rewards for all employees.

a. Use positive reinforcement. Use a constructive form of punishment.

39. Winston Churchill said, "Socialism is ______________________, and the gospel of envy, its inherent virtue is the equal sharing of misery." a. a philosophy of failure, the creed of ignorance b. the practice of public theft, the philosophy of undeserved equality c. the worst of all possible forms of government d. going to be the downfall of a great country

a. a philosophy of failure, the creed of ignorance

5. The management process starts with identifying a problem, then proceeds to decision making, usually to leading, and finally to a. auditing or examining the results of the process. b. completing the project in a timely basis. c. applying rewards and punishment. d. satisfying customer needs. e. satisfying customers and creating long-term loyalty.

a. auditing or examining the results of the process.

87. Ethical sustainability refers to the responsibility to a. be productive, contribute to public well-being, and leave the world a better place. b. leave the world a better place and that includes environmental concerns. c. share the world's resources responsibly and equitably, recognizing the morality of equality. d. create wealth in a proactive fashion while husbanding environmental resources.

a. be productive, contribute to public well-being, and leave the world a better place.

10. Capitalism destroyed a. class structure and toppled social barriers. b. the foundations of socialist governments and economies. c. the wealth of the working poor who had more wealth before the advent of capitalism. d. class barriers, social systems, religious dominance and the monarchy. e. the ability of many poor countries and poor people to compete in a global economy.

a. class structure and toppled social barriers.

60. And the third big lesson that we learned about relationships and our health is that a. good relationships don't just protect our bodies, they protect our brains. b. poor relationships can be countered by building new playmates later in life. c. a lack of human friendship is likely to cause a number of social problems. d. physical health is the product of our social and natural environments.

a. good relationships don't just protect our bodies, they protect our brains.

48. Wealth can be defined as a combination of natural resources, produced goods and services, and a. intangible assets. b. human capital. c. intellectual products. d. labor force productivity. e. energy invested.

a. intangible assets.

64. Contrast family size and life expectancy at birth in countries around the world and we see that the old story of a. large families, short lives has evolved to smaller families and higher life expectancies. b. large populations unable to be fed to developed countries with low birth rates. c. large families in poor countries to large families in rich countries. d. large economic growth in countries with large families to high growth in countries with small families.

a. large families, short lives has evolved to smaller families and higher life expectancies.

52. The Human Development Index (HDI) is a composite statistic of a. life expectancy, education and per-capita GDP. b. national income, infant mortality and percent of people with high school degrees. c. well-being, household incomes and secondary education. d. infant mortality, GDP per capita, and female participation in education e. economic growth, health/well-being, and educational levels.

a. life expectancy, education and per-capita GDP.

16. In the Project exercise, a lesson from personal scores suggested that a. lower personal scores indicated higher management intuition. b. team scores lower than all the personal scores suggest weak team skills. c. personal scores were a basic measure of leadership skills. d. team scores could not be higher than all of the personal scores. e. personality traits determined much of one's personal score on this exercise.

a. lower personal scores indicated higher management intuition.

28. "We don't actually count benefits in kind or aid through the tax system in our definition of poverty. The upshot of this is that in the old days the poverty line was really measuring the ________________." a. number of people who were poor after the things we did to reduce poverty b. number of people who were unwillingly unemployed or laid off from work c. number of single-parent households d. time it takes to earn a living wage e. level of dissatisfaction with the employment options available.

a. number of people who were poor after the things we did to reduce poverty

38. Equality or social justice can be best expressed in terms of a. opportunity, process, and outcomes. b. money, wealth and income. c. consumption, leisure and effort. d. ability, opportunity and effort. e. money, time and effort.

a. opportunity, process, and outcomes.

100. From human, business and environmental sustainability, we have evolved to the concept of sustainable development, where we seek a balance among a. the economy, the environment, and equitable distribution of benefits. b. people, product and innovative processes. c. short-, middle- and long-term sustainability d. the triple bottom line elements of organizational success.

a. the economy, the environment, and equitable distribution of benefits.

2. Organizational behavior is______________, or micro and macro organizational behavior, respectively. a. the study of behavior in and of organizations b. the academic basis of management and supervision c. the science of people and groups d. a theory and a science e. a science of the nature of work

a. the study of behavior in and of organizations

81. According to Matt Ridley, humans are the only species a. to become more prosperous as we become more populous. b. to be able to create wealth, while other species are exclusively consumers of resources. c. with the sentient powers needed to reason and improve their environments. d. that have been shown to grow in numbers without damaging the environment.

a. to become more prosperous as we become more populous.

58. According to the Good Country talk, when we elect governments or tolerate unelected governments, we're telling them that what we want is for them to deliver us in our country a certain number of things. We want them a. to deliver prosperity, growth, competitiveness, transparency, and justice. b. to provide us with positive rights, protect us from our enemies, and create opportunities. c. to educate our children, employ our adults, and care for the elderly. d. to deliver quality services, to govern fairly, and to ensure domestic tranquility.

a. to deliver prosperity, growth, competitiveness, transparency, and justice.

83. A century ago, the richest countries devoted _____ of their wealth to children, the poor, the sick and the aged; today they spend almost ______. a. 0%; 10% b. 1%; 25% c. 5%; 35% d. 10%; 40% e. 15%; 45%

b. 1%; 25%

82. Through most of human history, continuing into the 19th century, a newborn was expected to live about __________. In the two centuries since, life expectancy across the world has risen to _____, and in the developed world that life expectancy is 81. a. 24 years; 69 b. 30 years; 71 c. 35 years; 71 d. 40 years; 76 e. 45 years; 78

b. 30 years; 71

36. Greed is not peculiar to capitalism. a. Socialists are greedier than capitalists. b. Capitalism means creation, not accumulation. c. Even the poor can be greedy. The absence of money does not eliminate greed. d. Greed only became an issue when great amounts of new wealth were created.

b. Capitalism means creation, not accumulation.

25. Aquinas wrote, "Envy according to the aspect of its object is contrary to charity, whence the soul derives its spiritual life. _____________________________________." a. It behooves man to be charitable, not to hoard wealth b. Charity rejoices in our neighbor's good, while envy grieves over it c. Envy does not produce wealth, while wealth can produce envy d. Envy does not destroy poverty, while poverty can produce envy

b. Charity rejoices in our neighbor's good, while envy grieves over it

55. "Prosperous societies can invest in allowing each individual to develop the virtues and values, character and competences which make them authors of their own life stories." The eight prosperity sub-indices are Economy, Entrepreneurship and Opportunity, Governance, a. Social Freedom, Political Capital, Domestic Tranquility and Fiscal Soundness. b. Education, Health, Safety and Security, Personal Freedom, and Social Capital. c. Personal Income, Public Wealth, Corruption and Social Capital. d. Safety from Corruption, Personal and Social Freedom, and Human Capital.

b. Education, Health, Safety and Security, Personal Freedom, and Social Capital.

15. What is the first step in the Project exercise? a. Choose a basic strategic path to follow. b. Gather and analyze the facts of the current situation. c. Identify the basic cost of the project. d. Set goals for the overall purpose of the project. e. Clarify the budget provided to complete the project

b. Gather and analyze the facts of the current situation.

69. Landes notes a single characteristic separates American culture from other wealth-developing countries: _________________________. This characteristic positively impacts the entrepreneurial activity, self-reliance, personal responsibility and initiative needed for wealth creation. a. Competitiveness b. Individualism c. Capitalism d. Accountability e. Liberty

b. Individualism

71. Which of the following is not one of Ferguson's "killer apps"? a. Modern medicine b. Modern transport c. Consumer society d. Work ethic e. Two of the above are NOT from his list.

b. Modern transport

79. ___________________ has been used to refer to achieving a balance between environmental sustainability and the improvement of human (quality of) life, prosperity, progress and well-being. a. Ecological progress b. Sustainable development c. Comparative sustainable advantage d. Economic environmental growth e. Equitable growth

b. Sustainable development

95. Advantage describes the need for a firm to be more than competitive. Comparative refers to how the firm stands up to competition. Sustainable (in SCA) means that a. the environment is provided consideration in economic growth models. b. the comparative advantage needs to be viable in the long-term. c. profit is not more important than concerns for the environment and climate change. d. what works in the past must be made to work in the future

b. the comparative advantage needs to be viable in the long-term.

7. To operate effectively requires ______________________, which requires an informed, unbiased examination of rhetoric, of claims without data, of assertions without evidence, of narrow, one-sided arguments, or conventional wisdom. a. structured, written exchanges of information b. critical thinking based on knowledge c. innovative groupthink d. data, knowledge and inferences

b. critical thinking based on knowledge

46. In terms of financial wealth, the best strategy for accumulating wealth is to a. avoid college debt at all costs. b. defer, postpone or reduce consumption. c. first accumulate college debt, then attend graduate school and go on to earn a high income. d. set retirement investment goals and strategies at a very young age. e. Be born into a wealthy zip code, followed by attending an Ivy League college.

b. defer, postpone or reduce consumption.

76. Social justice is more than charity, altruism, or wealth re-distribution. Social justice is more about a. gender rights, market growth and economic opportunity. b. equal opportunity and equal treatment, not so much about equal outcomes. c. wealth and income inequality, educational costs, and immigration rights. d. creating more opportunity for immigrants to assimilate into their new country's culture. e. settling old scores among competing special interest groups.

b. equal opportunity and equal treatment, not so much about equal outcomes.

50. Hamilton and Hepburn defined six sub-components of wealth, including: a. financial wealth, land and labor. b. human and natural capital, plus intellectual property. c. manufacturing, agriculture and services. d. land, labor, factories, equipment and intellectual property. e. people, property, and natural resources

b. human and natural capital, plus intellectual property.

3. Leadership is about a. managing people to improve profits. b. influencing people's behavior. c. changing attitudes that lead to positive behavior. d. finding a team-based solution to organizational tasks. e. compelling people to do something beyond the usual

b. influencing people's behavior.

31. Contrast the claim from the American Declaration of Independence - ____________ - with the comparable French motto - liberte, egalite, fraternite. a. freedom, liberty and equality b. life, liberty and the pursuit of happiness c. freedom, happiness and the general welfare d. life, happiness and equality e. freedom, liberty, economy

b. life, liberty and the pursuit of happiness

41. New York mayor DiBlasio said, "I think there's a socialistic impulse, which I hear every day, in every kind of community, that they would _________________________." a. leave the city if their taxes were raised b. like things to be planned in accordance to their needs c. prefer that the government restrict charter schools, AirBnB and Uber d. prefer that the community have more control over local decisions e. like to receive a greater share of all the wealth the rich have taken from them

b. like things to be planned in accordance to their needs

45. Many American politicians, economists, and religious leaders are concerned about a. the taxed endowments of private colleges and universities. b. the negative impact of the aging of America. c. the wealth gap - wealth inequality and the growth in the gap. d. an increase in out-of-pocket medical costs for the wealthy. e. the decline in non-traditional church attendance among Millennials.

c. the wealth gap - wealth inequality and the growth in the gap.

66. Wealth-creating societies had to ___________________ and create sustainable strategies (entrepreneurship, innovation, educate and education). a. write laws and regulations to promote business and protect workers b. produce and incentivize value creation (production and retention) c. encourage the use of fossil fuels and policies of full employment d. empower workers, labor unions and worker productivity innovations

b. produce and incentivize value creation (production and retention)

54. The top-scoring social progress countries are predominantly Anglo-European. This pattern reflects the construction of the index, using values that a. allow capitalism, markets and business to flourish. b. reflect western beliefs, norms, values, and culture. c. provide few people with the full economic freedom and resources to succeed. d. emphasize the value of a college education over vocational skills. e. higher level of gender and income equality in American and European countries.

b. reflect western beliefs, norms, values, and culture.

12. With its focus on wealth distribution rather than creation, a. socialism is the best method for reducing poverty. b. socialism is a zero-sum economic growth model. c. capitalism is the source of income mobility. d. politicians prefer socialism to ensure social justice. e. the wealthy find socialism to be a good antidote to poverty.

b. socialism is a zero-sum economic growth model.

34. Prosocial and altruistic efforts to reduce income inequality include a. earned income tax credits, private school vouchers, and charter schools. b. taxation, charity, pensions, public education and healthcare. c. public health programs, free cell phones, and globalization d. religious services, food stamps, and foreign aid

b. taxation, charity, pensions, public education and healthcare.

88. In his talk, Matt Ridley notes the inescapable conclusion is that a. hot air from global warming is not the threat to the arctic that some scientists predict. b. the human use of fossil fuels has been causing the greening of the planet. c. people have grown accustomed to a style of living that reflects the planet's resources. d. conservation and anti-pollution efforts have turned the tide on climate change.

b. the human use of fossil fuels has been causing the greening of the planet.

17. Which of the following are all among the seven key leader behaviors? a. Communicate effectively. Lead from the front. Communicate often. b. Share information and power. Delegate authority with responsibility. Share power. c. Articulate and enact a vision. Establish clear goals. Develop self-efficacy. d. Empower with incentives. Set goals with information. Correct errors with discipline.

c. Articulate and enact a vision. Establish clear goals. Develop self-efficacy.

9. Prior to the practice of capitalism, wealth was not created and not widely shared. There was little economic growth. a. Free markets are the precursor to economic growth. b. Socialism and communism have been proven to be ineffective. c. Capitalism is about creating wealth. d. Wealth has been traditionally acquired by deception.

c. Capitalism is about creating wealth.

37. Cotton trading is not capitalism; it is not even a good metaphor for capitalism. a. Capitalism does not involve agricultural products, only manufactured goods. b. Cotton is subject to price changes based on the weather and it is not a capitalist's good. c. Cotton trading does not create wealth; it is primarily speculation. d. Capitalism has increased the production of cotton but decreased its value.

c. Cotton trading does not create wealth; it is primarily speculation.

86. __________________ describes the process of protecting and preserving natural resources, with a focus on the economic and social costs of environmental degradation. a. Ecological soundness b. The green movement c. Environmental sustainability d. Progressive conservation

c. Environmental sustainability

20. Which of the following behaviors were also among those highlighted in the Results exercise? a. Develop employee strengths and work around their weaknesses. b. Make corporate information widely available to all employees. c. Establish and maintain a clear and meaningful vision and mission. d. Settle employee disputes through arbitration and mediation. e. Two of the above are correct.

c. Establish and maintain a clear and meaningful vision and mission.

29. Relative poverty is not a measurement of poverty. Instead, it measures ___________. a. envy b. labor inefficiency c. inequality d. consumption e. Gini

c. inequality

21. In his TED talk on leadership and management, Simon Sinek asked: a. What are the opportunities? What are the costs? What are the benefits? b. What are our strengths? What are our weaknesses? What are our opportunities? c. What's your purpose? What's your cause? What's your belief? d. What is your vision? What is your mission? What are your basic values?

c. What's your purpose? What's your cause? What's your belief?

47. Assessing an economy by using GDP instead of wealth as the key measure is like looking exclusively at a. the formal labor force without considering the informal labor force. b. the full-time labor force without acknowledging the part-time labor force c. a company's income statements without considering assets on its balance sheet. d. a country's imports while ignoring exports. e. counting only those who earn an income as the sole economic measure of success.

c. a company's income statements without considering assets on its balance sheet.

75. Thomas Friedman claimed that trade, brands and markets have become global, creating a flat playing field where a. people travel easily, without border or transport restrictions or limits. b. people and products move cheaply around the globe with no tariffs. c. comparative advantages based on geography and distance have dissipated. d. globalization and equality create more equal pay around the world. e. globalization, socialism and multiculturalism have become the economic model of our era.

c. comparative advantages based on geography and distance have dissipated.

85. Economic sustainability requires efficient use of resources, a. economic growth, and human development. b. ecological protection, equitable growth, and a fair distribution of resources. c. cost-benefit analysis, and private ownership of common resources. d. market growth, human development and social progress. e. profit, customer satisfaction, and research and development

c. cost-benefit analysis, and private ownership of common resources.

4. Management refers to values. Key management values are the creation of wealth, a. profit and market share. b. employee satisfaction and product innovation. c. customers and a sustainable development advantage. d. economic growth and a sustainable comparative advantage. e. profit maximization and market share growth.

c. customers and a sustainable development advantage.

62. Focus first on _________________ rather than to start by assuming businesses will do bad things. a. profit and market share b. people and purpose c. doing good (positive ethics) d. quality and innovation

c. doing good (positive ethics)

80. History shows that 'Mother Nature' can be an incredibly destructive force and that a. people matter more than Mother Nature and other environmental concerns. b. environmental protection comes at the cost of economic growth. c. human progress coincided with human mastery and stewardship of natural resources. d. economic growth and the population explosion seriously threaten the environment. e. man has always been the master of his domain.

c. human progress coincided with human mastery and stewardship of natural resources.

26. The progression from global poverty to prosperity has been marked by increases in the creation of multiple forms of wealth, tremendous reductions in absolute poverty, and a. increases in child mortality and life expectancy. b. decreases in global military conflicts and increases in terrorism. c. increases in income and wealth inequality. d. decreases in the quality of life and the quality of the natural environment.

c. increases in income and wealth inequality.

68. Business creates wealth. Government ________________ to allow people and markets to thrive. a. stabilizes the currency and writes regulations b. prints the currency and provides a national banking system c. provides peace and security, education and the rule of law d. settles disputes between businesses and writes the commercial code e. defends and subsidizes the poor, the marginalized and the disenfranchised

c. provides peace and security, education and the rule of law

33. While health outcomes inequalities are a form of injustice, it is not clear that these differences are caused by income inequalities, a. because it is quite clear that health inequalities cause poverty. b. when even the wealthy suffer from significant wealth-related health problems. c. reducing economic inequality may not reduce health outcomes. d. because poor people are not likely to seek healthcare.

c. reducing economic inequality may not reduce health outcomes.

42. In the universal basic income TED talk, farmers scored much worse on an IQ test before the harvest. The speaker summed up the cause in two words: a. work stress. b. deferred anticipation. c. scarcity mentality. d. stress anxiety

c. scarcity mentality.

77. The original use of ___________ referred to the protection and maintenance of the natural, non-human environment. a. environmentalism b. environmental competitiveness c. sustainability d. the term, "green movement," e. ecological conservation

c. sustainability

43. We have a lot of similarities all over the world, and the images we see in the media, they show us the world is a very, very strange place. But when we look at___________, they do not look like that. a. bathrooms in Sweden b. the ways Millennials live today c. the Dollar Street images d. the lives of people in developing countries

c. the Dollar Street images

92. "What we do can come under the rubric of compassionate capitalism. In other words, we try to figure out_______________________. Profit is a means to an end rather than as an end to itself." a. the way to reduce costs of lenses through product innovation and productivity b. a method not unlike the way hamburgers pass through a fast-food assembly line c. the least amount of money we can sell a product or service for and still survive d. a way to make lens affordable to the poor by charging the rich enough to treat four for free

c. the least amount of money we can sell a product or service for and still survive

59. The second big lesson that we learned is that it's not just the number of friends you have, and it's not whether or not you're in a committed relationship, but it's a. how long you have maintained that intimate relationship that matters most. b. that people do not appreciate friends until they are too old to have new ones. c. the quality of your close relationships that matters. d. helping Millennials shift from an interest in money and fame to friendships.

c. the quality of your close relationships that matters.

65. Wealth creation has driven significant improvements in human development, ____________________ these last two hundred years. a. equality, energy use, infant mortality, and social justice b. medical breakthroughs, engineering marvels, global income inequality and security c. the quantity and quality of life, life expectancy, and social progress d. per capita incomes, personal savings, pollution reduction and infant mortality

c. the quantity and quality of life, life expectancy, and social progress

96. In linking carbon emissions with tariffs, the goal is to encourage sustainable local production, to reduce externalized costs of carbon emissions, to fund reductions in social insurance taxes, and a. to reduce carbon emissions that currently result from deforestation. b. to increase shipping costs so as to promote local, green production. c. to provide benefits for those adversely affected by carbon emissions. d. to nudge people away from antisocial behavior while encouraging prosocial acts.

c. to provide benefits for those adversely affected by carbon emissions.

72. One obvious implication of modern economic history is that it's quite hard to a. allow people to practice political freedom without their personal rights ensured. b. accept economic freedoms with strong government regulations to protect consumers. c. transition to democracy before you've established secure private property rights. d. promise economic growth without the educational system needed for productivity. e. compete globally without a significant system of higher and postgraduate education.

c. transition to democracy before you've established secure private property rights.

94. Social entrepreneurs seek broad value-added for a. a reasonable return on their financial and personal investment in any project. b. an alternative to traditional ways of doing business and not effecting social change. c. undeserved customers, viewing profit as a cost of doing business. d. social justice advocates, the poor and the marginalized.

c. undeserved customers, viewing profit as a cost of doing business.

44. Business students need to appreciate the concept of wealth, the importance of wealth, and the misunderstanding of a. capitalism as an instrument of wealth creation. b. the difference between income and consumption. c. wealth accumulation as a primary goal. d. globalization as the great trade engine of the twenty-first century. e. the role of government in creating wealth.

c. wealth accumulation as a primary goal.

14. There has been strong convergence in world incomes over the entire post-World War II period. Developing countries' share of the world's middle class has risen from _____ in 1960 to ______. a. 1 percent; 10 percent in 2000. b. 5 percent; 90 percent in 2000. c. 10 percent; 30 percent in 2000. d. 20 percent; 70 percent in 2000. e. 25 percent; 30 percent in 2000.

d. 20 percent; 70 percent in 2000.

51. Since 1910, the average number of hours worked annually in America has dropped from about a. 1800 hours to 1600 in 2010 b. 2000 hours to 1000 in 2010. c. 2400 hours to 1200 in 2010. d. 2800 hours to 1600 in 2010. e. 3000 hours to 1500 in 2010.

d. 2800 hours to 1600 in 2010.

67. Which is NOT one of the rights specified by David Landes? a. Secure rights of private property, to encourage saving and investment b. Secure rights of personal liberty against the abuses of tyranny and private disorder. c. Enforce rights of contract, explicit and implicit. d. Enforce rights to education and health care.

d. Enforce rights to education and health care.

70. Which of the following is not one of Ferguson's "killer apps"? a. Competition and choice b. Scientific Revolution c. Property rights d. Harnessing fossil fuels e. Two of the above are NOT from his list.

d. Harnessing fossil fuels

98. ________________ a by-product of a positive ethic of wealth creation for customers and the firm. a. Cleaner air and water are b. Employee satisfaction and customer loyalty are c. A reduction in climate change is d. Maximizing shareholder wealth is e. The pursuit of happiness is

d. Maximizing shareholder wealth is

35. The greatest shift in wealth in America in the past fifty years has been a. the decrease in wealth among the middle class and increased wealth at the top. b. a decline in wealth among the elderly as Millennials enter the job market. c. an overall increase in wealth for all Americans. d. a shift of poverty from the retired elderly to the young working college graduate.

d. a shift of poverty from the retired elderly to the young working college graduate.

78. When pursuing the management goal of creating ___________________, firms need to innovate their products and processes to achieve and keep a long-term competitive advantage in the market, offering customers an enduring value proposition. a. market value capitalization b. positive net worth c. customers d. a sustainable comparative advantage e. environmental market value

d. a sustainable comparative advantage

13. While social justice has many meanings, for this course we emphasize that social justice means a. ensuring that all people achieve comparable outcomes. b. balancing legal justice with economic justice. c. adopting socialism to guarantee both economic growth and income equality. d. equal opportunity and procedural justice, not equal outcomes. e. changing the traditional selfish interests of business to a consumer society.

d. equal opportunity and procedural justice, not equal outcomes.

90. In "When Ideas Have Sex," Ridley notes that the world got better from the human habit of a. pursuing self-interest has created wealth, reduced poverty and has not damaged the climate. b. curiosity leading to technological and medical advances have greatly increased life spans. c. generosity means that the great wealth creation and disparity is countered by charity. d. exchange and specialization which had led to an extraordinary rise in living standards.

d. exchange and specialization which had led to an extraordinary rise in living standards.

61. A critical lesson is to appreciate the historical transition of our understanding of wealth ______. a. shows that people do not appreciate the wealth that they have until they lose it b. provides a sense that people's creative, innovative urges are unlimited c. tells us that the system continues to be biased in favor of the wealthy d. from the narrow, tangible image of wealth to a broad concept, able to be created

d. from the narrow, tangible image of wealth to a broad concept, able to be created

93. David Green claimed that "the ________________________, where I know how much it costs me to make something but I'm going to fool you, the consumer, into paying as much as possible." a. cost of things is not really as expensive as business says they are b. price of a lens does not reflect the real cost of its development c. way we account for costs is not fair to the poor d. market economy is based on a fundamental deception

d. market economy is based on a fundamental deception

74. The goal of capitalism is to maximize individual well-being and happiness without violating the rights of others, by a. creating factory job opportunities for the middle class. b. establishing global trade and markets in developing countries. c. setting economic growth on a positive growth trajectory. d. maximizing individual freedom and responsibility.

d. maximizing individual freedom and responsibility.

23. Poverty is at the root of many of our social and cultural problems, including race, health, education, and perhaps most of all - a. life expectancy. b. happiness. c. trust. d. opportunity.

d. opportunity.

73. John Locke said that freedom was rooted in ________________________. That's the basis for the Western model of representative government. a. transparent government and free elections b. democracy and economic freedom c. free elections and political parties d. private property rights and the protection of law e. the protection of minority rights from the tyranny of the majority

d. private property rights and the protection of law

57. The seven Good Country indices measure the global contribution of each assessed country to science and technology, culture, international peace and security, world order, a. inclusiveness, tolerance, discrimination and poverty. b. national health, safety net, tolerance and diversity. c. foreign aid, international security and disaster relief. d. prosperity and equality, and health and well-being. e. gender progress, minority rights, and international aid.

d. prosperity and equality, and health and well-being.

49. The __________ provides people with the confidence and security to work, trade, and borrow; it reduces risk, uncertainty and the level of indiscriminate injustice. ___________ allows a society to grow, improve and innovate. a. Constitution; Entrepreneurship b. legal system; Business c. entrepreneur; Economic freedom d. rule of law; Education e. government; Science

d. rule of law; Education

40. Per Margaret Thatcher, "The problem with socialism is that a. the cost to collect taxes is higher than the benefits they produce." b. it annihilates incentives, reducing the wealth socialists insist on sharing." c. under any other political system, it would be called theft, not taxation." d. sooner or later you run out of other people's money."

d. sooner or later you run out of other people's money."

22. In her TED talk, Ms. Torres: said, "And one of the leaders shared with me the fact that the most impactful development comes when you are able to build the emotional stamina a. to determine when people are lying to you or trying to mislead you." b. to take on the toughest tasks and to persist in completing them." c. to persist through the challenges of the global economy." d. to withstand people telling you your new idea is naïve, reckless or stupid."

d. to withstand people telling you your new idea is naïve, reckless or stupid."

89. One of the most exciting scientific findings of the past half-century has been the discovery of ____________, an ecological process which starts at the top of the food chain and tumbles all the way down to the bottom. a. natural order b. biodiversity c. biological replacement d. trophic cascade e. natural karma

d. trophic cascade

63. Business is a process, the combination of a. people, capital and land to create markets. b. ideas, institutions, innovations and economic growth. c. money, leadership and management. d. various forms of capital to create value by serving customers.

d. various forms of capital to create value by serving customers.

8. Two hundred years ago, about ______ of the world's one billion people were poor. Today, the number of people who are poor remains almost unchanged while there are ________ people who are not poor. a. 6%; two billion b. 26%; three billion c. 50%; four billion d. 72%; five billion e. 94%; six billion

e. 94%; six billion

99. Which of the following characteristics of first industrial revolution does not fit? a. Extractive b. Linear c. Fossil energy fueled d. Wasteful e. Industrial

e. Industrial

30. Census data showed three behaviors that characterize American adults who are not in poverty. a. They worked two jobs, they worked through college, and they studied a lot. b. They studied a lot in school. They earned good grades in college. They were married. c. They saved money early, they had no children, and they married after the age of 22. d. They had a job in high school, they took on no debt for college, and they married. e. They finished high school, worked for one year, and married and stayed married.

e. They finished high school, worked for one year, and married and stayed married.

53. The Social Progress Index asked this/these questions: Does everyone have the a. basic needs for survival: food, water, shelter, safety? b. access to the building blocks to improve their lives c. access to a chance to pursue their goals and dreams d. time to pursue leisure activities e. Three are correct.

e. Three are correct.

19. Which of the following behaviors were among those highlighted in the Results exercise? a. Use effective and dynamic communication practices. b. Lead by example to demonstrate character and competence. c. Provide financial rewards for exceptional work. d. Correct errors through prevention. e. Two of the above are correct.

e. Two of the above are correct.

1. The professor's goals for students in this course are (1) to help students learn how to leave the world a better place than you found it and (2) to a. maximize shareholder value. b. maximize long-term profit. c. reduce poverty. d. accumulate wealth. e. correct false or outdated notions.

e. correct false or outdated notions.

11. Greed exists in any economic system. People often sought to hoard wealth through politics, corruption and violence. With capitalism, a. for one party to win, the other must lose. b. for one party to lose, both sides must lose. c. business benefits but the working poor suffer. d. the rich get richer and the poor get poorer. e. self-interest creates value and wealth.

e. self-interest creates value and wealth.

97. Long-term wealth creation is dependent upon the firm creating a _______________that allows the firm to continue to create, satisfy and maintain loyal customers. a. prosocial environment for change b. non-hostile work environment c. market-sensitive culture d. free market for ideas e. sustainable comparative advantage

e. sustainable comparative advantage

27. Absolute poverty is a condition that occurs _______________________________. a. in developing countries but rarely if ever in developed countries b. naturally in the nature of economic cycles c. when families fall apart and there is a significant loss of earning power d. in times of economic depression, with its high unemployment e. when a person's or a household's income falls below a specific threshold level of income

e. when a person's or a household's income falls below a specific threshold level of income