Chapter 1 Practice quiz pt. 1
_____ refers to a government's programs for controlling the amount of money in circulation.
Monetary policy
_____ move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered.
Multinational corporations
Which of the following statements about human rights is true?
None of the above statements about individual rights is true.
_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.
Outsourcing
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
A "mixed economy" is an economic system that:
combines private and government ownership of the factors of production
A domestic firm may decide to contract for the production of its goods by an established foreign manufacturer. Such private-label manufacturing by a foreign company is called:
contract manufacturing
_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.
Demand-pull
Which of the following is an example of a natural trade barrier?
Distance
_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.
Import quotas
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
Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:
legality and responsibility
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
Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production?
natural resources
The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province. Mazda is using _____ to engage in global trading.
direct foreign investment
Utilitarianism:
is difficult to implement because it is hard to tell how one decision will impact a large number of people
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
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
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
Codes of ethics:
Social responsibility B. Business ethics C. Consumerism D. The marketing concept E. Business morality
Which of the following is an example of a demographic factor?
a person's age
Labor, as a factor of production, refers to:
all workers in business
Upward and downward changes in aggregate economic activity, as measured by GDP, are called:
business cycles
One of the keys to ethical business behavior is:
how the company's top management conducts themselves
U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of:
licensing
The implementation of a contractionary policy by the Federal Reserve would result in:
lower inflation
The implementation of an expansionary policy by the Federal Reserve would result in:
lower interest rates
The standard of living in any country is:
measured by the output of goods and services people can buy with the money they have
During a two-month period Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, donated ten percent of its retail profits to the Susan G. Komen Breast Cancer Foundation. The action was legal and ethical and allowed the company to still be profitable. According to the pyramid of corporate social responsibility, it was acting at the _____ responsibilities level.
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
Which of the following is probably the MOST difficult environmental factor for owners and managers to forecast, influence, or integrate into business plans?
social change
_____ are all the individuals or groups to whom a business has a responsibility.
Stakeholders
Which of the following statements about utilitarianism is true?
Utilitarianism holds that an action that affects the majority adversely is morally wrong.
When a single firm accounts for 100 percent of industry sales, it is an example of:
a pure monopoly
_____ are goods and services that are made in one country and sold to other countries.
Exports
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.
Which of the following is an example of a business? Lawson & Tyler law offices Jack & Jill, a specialty clothing store for young children Wal-Mart Ford Motor Company
all the above
A(n)_____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.
federal budget deficit
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
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
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
In 1914, the United States prohibited the importation of Mexican avocados even though Mexico is the world's largest producer of the fruit. This prohibition remained in effect until 1996. The ban on importing Mexican avocados is an example of a(n):
embargo
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
When demand and supply meet, the price of the product or service is established. This is the point of:
equilibrium
A country that imports more goods than it exports is said to have a(n):
unfavorable balance of trade
Which of the following statements about the interaction of demand and supply is true?
At prices below equilibrium, demand exceeds supply.
_____ inflation is triggered by increases in production costs which increase the costs of final goods and services.
Cost-push
_____ is the set of moral standards for judging whether something is right or wrong.
Ethics
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
At the base of the corporate social responsibility pyramid is:
economic responsibilities
A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.
philanthropic
The highest level of the corporate social responsibility pyramid is:
philanthropic responsibilities
Fiscal policy is concerned with:
taxation and spending
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 unethical business activity?
All of the above are examples of unethical business activities.
_____ 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
Social responsibility should extend beyond the shareholders to include: employees community suppliers consumers
all of the above
Which of the following is a characteristic of pure competition? all the firms in the market sell similar products a large number of small firms entry into and exit from the market is easy buyers and sellers in the market are well-informed about the product
all of the above
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
The _____ represents the prices of a market basket of goods and services as measured monthly by the Department of Labor.
consumer price index (CPI)
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 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
A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.
countertrade
When the economy is in a recession, many companies must lay off workers, which causes _____ unemployment.
cyclical
A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.
ethical
In the chocolate market, Green & Black is acting at the _____ responsibilities level of the pyramid of corporate social responsibility when it makes a profit, does so by abiding by the laws, and helps cocoa farmers by agreeing to pay above-market prices for cocoa.
ethical
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
The situation in which the average of all prices of products is rising is called:
inflation
Jamaica has 35 airports, 18,700 kilometers of paved and unpaved road and a total of 272 kilometers of railroad track. This is a partial description of the nation's:
infrastructure
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
The economic system under which basic industries are operated by the government or owned by the private sector under strong government control is called:
socialism
Which of the following is the best example of a service?
the pleasure you derive from seeing a good play
Market equilibrium is:
the point at which quantity supplied equals quantity demanded
The quantity of a product or service that businesses will make available at various prices is called:
supply
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
Which of the following statements about ethics training is true? Ethical training does not have to be boring. The most effective ethics training begin with the techniques for solving ethical dilemmas. Ethics training is formal training to develop an awareness of questionable business behavior and to practice appropriate responses. Fewer than half of all American companies have some type of ethics training programs.
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
_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.
Entrepreneurs
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.
_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.
Profit
The Department of Natural Resources spent money to promote the use of national parks as perfect sites for a summer vacation causing motels, campgrounds and other tourist attractions in the private sector to become less attractive to consumers. Consequently consumers spent more money on trips to the national parks and less money in the private sector for their vacations resulting in _____.
crowding out
Laws relating to the alcoholic content of beer have required many imported brands of beer to be labeled malt liquor when it is sold in the United States. In addition, all beer sold in the U.S. must contain an expiration date or a "best-buy" date. These laws have made it difficult for small foreign breweries to enter the U.S. market. These laws are an example of:
customs regulations
Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:
export
The least costly and least risky method for selling a product on the global market is:
exporting
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
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
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
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
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
Which of the following countries has a high standard of living?
the United States
Which of the following is the best example of a good?
the birthday candles you purchased to go on your sister's birthday cake
When the government raises taxes on consumers and businesses, it is dealing with _____ policy.
fiscal
Which of the following is NOT a form of unemployment?
fiscal unemployment
A code of ethics: provides employees with the knowledge of what their firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers is considered by some to be public relations gimmicks can offer a lengthy and detailed set of guidelines to employees is a summary statement of the firm's goals, policies, and priorities
is accurately described by all of the above
Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.
justice
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.