Econ: Study Guide for Test

________ is acting within the good principles of society and within the accepted rules of proper behavior.

Acting ethically

In 1914 the ________ prevented a merging of corporations to have intertwining boards of directors.

Clayton Antitrust Act

Paul wrote, "And, ye masters, do the same things unto them, forbearing threatening: knowing that your Master also is in heaven; neither is there respect of persons with him" ( ________ 6:9). Management by fear has no place in Christian management.

Ephesians

Select the five dangers of a monopoly.

Higher prices No rival competition or alternative markets Lower quality Limitation or elimination of certain goods Poor service and attitude

Check the boxes that are TRUE.

If the car dealer will not or cannot show you the repair orders or identity of former owner, you should not buy the car. Have a mechanic friend look for hidden damage repairs on "new" (and used) cars.

An important part of a Christian's obligation as manager is to be fair to his workers. "Thou shalt not defraud thy neighbor, neither rob him: the wages of him that is hired shall not abide with thee all night until the morning" ( ________ 19:13).

Leviticus

Check the boxes that are TRUE.

Monopolies are judged by how strong the competition is between the companies. The Fed issues the nation's coin and paper currency. Trusts were unofficial mergers formed to control prices and production in the marketplace.

Mark the boxes that are TRUE.

One of the largest divestitures in American history occurred when the U.S. Government ruled that the AT & T ® Corporation was a monopoly that must be divided so that the telephone market might be more competitive. The Federal Aviation Administration regulates the airlines. The Securities and Exchange Commission regulates the stock market. The Interstate Commerce Commission polices monopolistic practices.

A deduction from a full purchase amount that is repaid to the consumer is called a?

Rebate

Which answer is NOT TRUE?

The Fed was started in 1933.

Mark the boxes that are TRUE.

The Federal Communications Commission regulates radio and television to the extent of licensing stations and policing programming. The Federal Aviation Administration regulates the airlines. The Securities and Exchange Commission regulates the stock market. The Interstate Commerce Commission polices monopolistic practices. The Food and Drug Administration assesses all foods and drugs consumed.

A ___________ and the Federal Open Market Committee oversee the operation of the Fed.

board of governors

It is the manager's job to _________ the wishes of top management in such a way as to motivate employees to carry out these wishes.

communicate

How does inflation affect businesses? In the first place, it hurts all creditors, but it helps:

debtors

Some businesses have stricter guidelines and even have their prices regulated. These price-regulated businesses are normally monopolies like?

electric companies

Some monopolies do not drive prices up and competitors out; they serve the public. An example is?

electric companies

What is the chief principle in the 4 Biblical passages (Leviticus 19:13 and Deuteronomy 24:14-15) on management?

fairness

Risk-taking management involves making the basic decisions that affect the future of the business and is called operational management.

false

The end-of-year White Sale is a sale on office supplies.

false

The Fed is a(n) ______ agency of the United States government.

independent

Inflation = _____ money + Fewer goods.

more

In which three ways does the Fed manage the country's money supply?

open-market operations (purchase or sale of government securities) change the discount rate change reserve requirements

After the trusts had eliminated the competition, they would cut back on production and?

raise prices

Week by week the finances in this country can change, so the selling and buying of ______ helps to maintain equilibrium.

securities

The Securities and Exchange Commission regulates the?

stock market

What is operational management?

the day-to-day operation of a business

What people would make entrepreneurial decisions in a corporation?

top management board of directors

A bank might be seeing a hard pull on its deposits, so it borrows from the Federal Reserve Bank.

true

The Fed works to keep the balance of financial strength at a good level by keeping interest rates low in recessions and letting them rise in economic "boom " times.

true

The U.S. Treasury keeps a checking account with the Federal Reserve.

true

The test of an entrepreneurial decision is whether or not there is a recognizable profit or loss.

true

When banks borrow money from a Federal Reserve Bank, they are given a certain interest rate to pay back the loan. If the Federal Reserve System raises the rate of interest, the banks will find it harder to repay loans.

true

Walt's fellow workers are going on strike since the price of food has increased dramatically within the last 14 months. They are looking to get a higher salary. This continual rise in salaries and consumer goods prices is known as a:

wage-price spiral