Management Exam 1
46. Poorest countries in terms of wealth per capita were [3-5] a. Africa b. south Asian c. South American d. Sahara African e. equatorial
a. Africa
67. According to Schwartz, these four things make people miserable: ____________________. [4-4] a. Anticipated regret, opportunity costs, escalation of expectations, and self-blame b. Time, paralysis of analysis, undeserved autonomy and delegated responsibility c. Unwanted autonomy, time limits, excessive choices, and hedonistic behavior d. Time pressure, contingencies, unfulfilled promises, and aversion to risk e. Medical costs and autonomy, consumerism, market segmentation and risk
a. Anticipated regret, opportunity costs, escalation of expectations, and self-blame
21. In 1910, the world's largest cities (by population) were New York, London, Paris. By 2010, Shanghai, Mumbai and Karachi were largest. But in 1500, and the largest cities were [2-1] a. Beijing, Cairo and Vijayanagar b. Cairo, Istanbul and Bombay c. Athens, Rome and Tokyo d. Peking, Calcutta and Rome e. Cairo, Khartoum, and Paris
a. Beijing, Cairo and Vijayanagar
5. ___________________ is about stewardship; _________________________ is about influencing people. a. Management; leadership b. Business; motivation c. Socialism; advertising d. Wealth; capitalism e. Profit; marketing
a. Management; leadership
94. Which of the following is not true? [5-6] a. PSLB is genetic. b. PSLB is enduring, not transitory. c. PSLB benefits the leader and followers. d. PSLB helps others. e. All four of the above are true.
a. PSLB is genetic.
74. Universal access to education does not require what we call "public schools." [4-6] a. Public education means providing resources and standards people need to learn. b. Public education has become primarily a full employment model for rich countries. c. Public education has provided the basis for long-term economic growth since 1865. d. Private education has more funds than public schools, so they are better. e. Private schools would not be necessary to replace public schools in rich districts.
a. Public education means providing resources and standards people need to learn.
30. What is sustainable development? Sustainable means the capacity to continue. [2-7] a. Sustainable development means a path of human progress into the long term. b. Development is a purely economic concept. Sustainability is an environmental concept. c. Sustainable development rejects sustainability theories in favor of economic growth. d. Economic growth creates inequalities that undermine sustainability. e. Growth comes at the expense of the environment. The environment must be sustained.
a. Sustainable development means a path of human progress into the long term.
88. In his interview, Dr. V expressed his vision: [5-3] a. The purpose of life is not just earning money, living comfortably, but realizing God. b. It is important to find God in all things, to feed many mouths, to serve many people. c. Start an eye clinic that served the poor by serving the wealthy. d. Maximizing the efficiency of the delivery of goods and services to the poor. e. Cure and prevent blindness in India.
a. The purpose of life is not just earning money, living comfortably, but realizing God.
19. These are the primary goals of good management: ______________________________________. [1-15] a. create customers, wealth and a sustainable comparative advantage b. make a profit, increase revenue, and increase market share c. innovate, compete and dominate d. quality, effectiveness and efficiency e. money, market share and cash flow
a. create customers, wealth and a sustainable comparative advantage
11. Harold Macmillan said, "Nothing that you will learn in the course of your studies will be of the slightest possible use to you in after life - save only this - if you work hard and diligently you should be able to _______________________________." a. detect when a man is talking rot b. lead people to better lives c. leave the world a better place than you found it d. demonstrate courage under adversity e. provide hope to others
a. detect when a man is talking rot
81. Effective leader behaviors include articulating a vision, establishing goals, and ____________, among others. [5-1] a. developing self-efficacy b. providing clear rules c. creating wealth d. recognizing small successes e. being appreciative
a. developing self-efficacy
37. The fatal flaw in the "social justice" exercise to demonstrate power and wealth was the assumption that wealth is fixed. Assuming that wealth is fixed is __________________. [2-13] a. erroneous, counterproductive and misleading b. useful approximation of reality, given the short-term nature of most decisions c. a product of the historic paradigm that relied on land as the primary measure of wealth d. a key assumption of Karl Marx's Communist Manifesto e. an essential part of a capitalistic system
a. erroneous, counterproductive and misleading
51. The three elementsa of the Human Development Index are ________________________ [3-9] a. life expectancy, education and per capita GDP. b. education, opportunity and economy. c. gender equality, educational opportunity and economic growth. d. child mortality, educational level, and gross domestic product e. educational level, geneder equality and economic development.
a. life expectancy, education and per capita GDP.
57. The second Development exercise identified three themes of political and legal rights: [3-12] a. rights, rules and responsibilities of related to governments. b. the right to participate, the right to be educated, and the right to vote. c. the right to life, liberty and the pursuit of happiness. d. the rights of ownership, entrepreneurship and wealth accumulation. e. rights to own, rights to trade, and rights to negotiate.
a. rights, rules and responsibilities of related to governments.
41. Capitalism is primarily about __________________; socialism is about _________________________. [3-1] a. wealth creation; wealth distribution b. greed; fairness c. money; people d. banking; politics e. Smith; Marx
a. wealth creation; wealth distribution
6. According to Dan Pink, "If-then rewards work really well for those sorts of tasks, ____________. a. where there is a simple set of rules and a clear destination b. when people really care about the task at hand c. when people DON'T really care about the task at hand d. where there are no other reasons to do a good job e. when boredom beats out creativity as a way of working
a. where there is a simple set of rules and a clear destination
36. Rosling claimed that the richest 20% of the world population 'take' about _______ of income. a. 70% b. 74% c. 86% d. 88% e. 92%
b. 74%
100. Which of the following is one of the closing lessons about wealth? [5-11] a. A high income is not a guarantee of wealth. b. A low income is not a guarantee of poverty. c. Over time, people's incomes change; they may climb or fall among the five income quintiles. d. Wealth tends to accumulate over time, with age and savings. e. Wealth tends to be inherited.
b. A low income is not a guarantee of poverty.
23. These are some of Niall Ferguson's "killer apps" of "the West". a. Capitalism, competition, choice, and consumerism b. Competition and choice, modern medicine, the rule of law c. Property rights, personal freedom, consumerism, and information technology d. Innovation, entrepreneurship, private ownership and medical breakthroughs e. Modern medicine, personal choice, competition, and limited government
b. Competition and choice, modern medicine, the rule of law
42. The World Bank made these observations about poverty: Consumption is a better outcome indicator than income: Consumption may be better measured than income; and [3-1] a. Income is more important than assets. b. Consumption may better reflect a household's ability to meet basic needs. c. Wealth matters little without incomes. d. Federal expenditures have greatly reduced the transfer of wealth to the poor. e. Consumption at high levels of wealth equal only about ten percent of income.
b. Consumption may better reflect a household's ability to meet basic needs.
78. In the analysis of globalization, we note that markets have always existed. There has been a general, global increase in freedom, information and wealth. ____________________________ [4-10] a. Globalization threatens sustainable development. b. Globalization is a positive strategy for sustainability and sustainable development. c. Globalization threatens sustainability. d. Globalization has peaked, as evidenced by declining oil prices. e. Globalization has been used as a method to drive down wages in developed countries.
b. Globalization is a positive strategy for sustainability and sustainable development.
68. According to Schwartz, " _____________________will make everyone better off, not just poor people, because of how all this excess choice plagues us." [4-4] a. Reduced choices b. Income redistribution c. Government regulation d. Expert advice e. Swarthmore professors
b. Income redistribution
84. These are the last four tactics from the 20 behaviors of managers who achieve results. [5-2] a. Set reasonable goals, apply good management, develop new employees, and train people on a continuous basis. b. Provide resources, proactively improve processes, practice constructive appraisal, and maintain balance between personal and professional lives. c. Keep employees informed and engaged, stop making things worse, create opportunities for success, and be prepared to listen. d. Remove barriers to performance, develop better relationships with suppliers, promote training and education, and keep people informed. e. Foster teamwork, clarify expectations with demanding goals, use systematic planning, and keep yourself ahead of the curve.
b. Provide resources, proactively improve processes, practice constructive appraisal, and maintain balance between personal and professional lives.
34. The notes to the "not flat" video, noted that most wealth transfers are domestic, not global. a. Poor people in the United States live under conditions worse than poor people in Europe b. Rather than more foreign aid to the global poor, we need global wealth creation. c. Wealth transfers within the United States federal budget have declined of late. d. Wealth transfers have been shown to always be inferior to direct foreign aid. e. Poverty is a relative term. Absolute poverty has increased while equality has decreased.
b. Rather than more foreign aid to the global poor, we need global wealth creation.
47. Which of the following statements is true? [3-6] a. Natural capital is intangible. b. The relationship between intangible and intangible wealth is reciprocal. c. Gains in intangible capital have been offset by losses in tangible capital worldwide. d. Produced capital has replaced natural capital as the dominant form of wealth. e. Intangible wealth cannot be seen or touched, nor can it be accurately measured.
b. The relationship between intangible and intangible wealth is reciprocal.
16. ______________________ is the depletion of a shared resource by individuals. [1-11] a. Pollution b. The tragedy of the commons c. A capitalist market d. Irresponsible business e. Business
b. The tragedy of the commons
66. Barry Schwartz claimed that this is the official dogma of all western industrial societies. [4-3] a. Competition is the greatest disadvantage of capitalism as it drives bad choices. b. To maximize welfare, maximize personal freedom. To do that, maximize choice. c. Having choice is what people want; making choices is what makes us human. d. Managers create customers by creating choice; the more choice, the more customers. e. Freedom allows choice. Choices increase wealth. Capitalism corrects bad choices.
b. To maximize welfare, maximize personal freedom. To do that, maximize choice.
92. In taxing sin, the targeted behavior must be _______________; the behavior must ________________ and the behavior must cause some form of harm to the general public. [5-6] a. antisocial; personal b. addictive; cause harm to the focal person; c. detrimental; deteriorate d. under the control of the person; stay consistently 'bad' over time e. physical and observable; harm the person
b. addictive; cause harm to the focal person;
97. McClelland identified five bases of power: Positional, coercive, ________________________. [5-9] a. weak, strong and intermediate b. expert, reward and referent c. common, rare, and irregular d. pervasive, personal and authoritative e. nominal, rational and real
b. expert, reward and referent
72. Gladwell's talk made it clear. Having alternatives is preferable to ______________________ . [4-5] a. government regulation b. imposing a single, universal solution c. unlimited choices d. the paralysis of analysis e. welfare maximizing strategies
b. imposing a single, universal solution
27. Hamilton and Hepburn identified six forms of wealth: physical (or produced), human capital, natural capital, intellectual property, _________. [2-5] a. real, natural, and intangible b. institutional capital, and net financial assets c. financial, tangible, and human d. business, personal, and household e. social, interpersonal and intangible
b. institutional capital, and net financial assets
55. Four wealth-developing principles identified in the first Development exercise are _____ .[3-12] a. efficiency, work ethic, innovation and education b. production, education, innovation, and emulation c. effectiveness, exports, efficiency, and moderation d. education, creativity, distribution, and deferred gratification e. training, innovation, stimulation and discrimination
b. production, education, innovation, and emulation
52. The ten top-ranked countries on the Human Development Index are Norway, Australia, Switzerland, Netherlands, __________________________ [3-9] a. France, Germany, England and Spain b. the United States, Germany, New Zealand, Canada, Singapore and Denmark. c. Sweden, Austria, Denmark, and Finland d. Denmark, Belgium, France and Italy e. Sweden, Finland, Denmark, and Austria
b. the United States, Germany, New Zealand, Canada, Singapore and Denmark.
86. At Aravind, surgeons now do__________, even as they provide the best eye care quality in India. a. more surgeries for the poor than for their fee-paying students b. up to 100 surgeries a day, ten times the rate of American surgeons c. what they can to bring the "face of God" to the poor d. as many surgeries as Dr. V did before his hands came to be crippled with arthritis e. their surgery under cramped, primitive conditions in the poorest villages
b. up to 100 surgeries a day, ten times the rate of American surgeons
65. The libertarian author Ayn Rand made this observation about America: ____________________ [4-2] a. "When the world lost its freedom, America helped to find it again." b. "American success can be traced to the individual and the innovator." c. "Americans were the first to understand that wealth has to be created." d. "Americans believe in many things. Socialism is not one of them." e. "The course of world freedom and economic growth has been charted by America."
c. "Americans were the first to understand that wealth has to be created."
18. In "Ten days to war," a colonel opens pre-battle remarks to his men with these words: [1-14] a. "Men are marked with the scar of Cain when they kill needlessly." b. "You should make your mom's proud when they read about you next week." c. "It is my foremost intention to bring every single one of you out alive." d. "Pack your gear; this is going to be a long battle." e. "Those of you not willing to join us for this fight, you can stand down."
c. "It is my foremost intention to bring every single one of you out alive."
43. A comparison of the European Union and the United States showed that _________________ [3-2] a. 15 EU countries have smaller gross domestic products than North America. b. the European economy is contracting at the same rate the U.S. economy is growing. c. 25 EU countries, with 50% more people than the United States, equal the US GDP. d. the addition of more countries to the EU had not provided the level of US growth. e. American banks have a competitive advantage due to lax tax laws in Europe.
c. 25 EU countries, with 50% more people than the United States, equal the US GDP.
95. Entrepreneurship means innovation. Social entrepreneurship means innovative social change. ________________________________________ Creating customers at the lower economic strata means more and is more sustainable than charity or aid. [5-7] a. PSE creates social impact for society. PSE addresses the poor through service. b. PSE shifts resources to serving the poor. PSE requires social capital. c. PSE creates social value for the customer. PSE creates customers among the poor. d. PSE provides new resources to the poor. PSE creates new markets for the wealthy. e. PSE provides a new method for serving the poor. PSE creates new global markets.
c. PSE creates social value for the customer. PSE creates customers among the poor.
85. In a global, developing economy, positive social change and the development of sustainable social capital is a key form of wealth. [5-2] a. Prosocial entrepreneurs elevate social entrepreneurship to a global level. b. Intangible wealth replaces physical and natural capital as the basis for entrepreneurship. c. Social entrepreneurs lead with prosocial intentions and a focus on social capital. d. Social capital provides the basis for long-term social sustainability and development. e. Social entrepreneurs provide the resources needed for sustainable development.
c. Social entrepreneurs lead with prosocial intentions and a focus on social capital.
58. In Hans Rosling's TED talk on avoiding ignorance noted the following: [3-13] a. Educational levels among women have increased as poverty has declined. b. People tend to cling to outdated information for cultural reasons. c. Teachers tend to teach outdated worldviews they learned in school. d. The media note extreme events have increased with global warming and climate change. e. Women have contributed to the demise of poverty in ways unexpected by models.
c. Teachers tend to teach outdated worldviews they learned in school.
7. According to Daniel Pink at TED, "As long as the task involved only mechanical skill bonuses worked as they would be expected: the higher the pay, the better the performance. But once the task called for even rudimentary cognitive skill, _______________________________." a. creativity declined among the youngest participants b. people tended to become very competitive over simple rewards c. a larger reward led to poorer performance d. the value of rewards declined with each successive trial e. people became more productive when paid a high, flat rate.
c. a larger reward led to poorer performance
2. Organizational behavior is a function of ________________________________________, or what the person can do, wants to do and helps the opportunity to do. a. the organization's environment, culture and leadership b. time, money and goals c. ability, motivation and the environment d. self-efficacy, goals and leadership
c. ability, motivation and the environment
12. Motivation is a psychological state; most leaders ________________________________, [1-8] a. fail to recognize the importance of good management b. think more in terms of their own wellbeing than in the wellbeing of others c. attempt to influence motivation of their followers d. are profit- or results-oriented rather than people- or social-oriented e. think that goals are important as a means to and end, and that end is wealth
c. attempt to influence motivation of their followers
32. In TED, Ghemawat asked people to guess the percentage of the federal budget going to _____________. Their guesses were in excess of the actual level, which is about 1%. [2-8] a. cell phone service for the poor b. food stamps c. foreign aid d. Social Security e. federal aid to education
c. foreign aid
3. In thirty years, incomes around the world have tripled, while (1) the percent of the world's people living in absolute poverty _________________while (2) income inequality __________________. a. declined; globalized b. increased; increased as well c. greatly decreased; greatly increased d. increased in wealthier countries; decreased in poorer countries e. declined until the financial collapse of 2008; increased after 2008
c. greatly decreased; greatly increased
48. The twelve measures of social progress fell under three main categories: _______________. (3-7) a. wealth, income and equality b. health, education and equality c. human needs, wellbeing and opportunity d. educational opportunity, social justice, and wealth distribution e. natural, produced and intangible
c. human needs, wellbeing and opportunity
73. Education drives produced wealth, and is the best single predictor of ________________. [4-6] a. unemployment, marriage longevity and life satisfaction b. GDP growth, happiness, and the absence of corruption c. job performance, career success and wealth creation d. life expectancy, employment prospects, and lifetime income e. almost nothing
c. job performance, career success and wealth creation
77. A rational, informed, effective decision requires the decision maker to (1) recognize and define the problem, (2) develop alternatives or choices, (3) __________________________. [4-8] a. find one best alternative, and (4) select the best solution for the current situation b. analyze potential negative outcomes, and (4) lead the implementation of the decision c. make an informed choice, and (4) act to implement and control the decision d. research the costs and benefits of each alternative, and (4) choose the best one e. make a first evaluation of each alternative and (4) make a final selection
c. make an informed choice, and (4) act to implement and control the decision
31. The "five capital model of the economy" types of capital are _____________________________, social, manufactured and financial. [2-7] a. monetary, produced b. imported, developed c. natural, human d. intellectual, psychological e. traded, developed
c. natural, human
69. Schwartz makes an error framing the 'choice' problem. Choice is essential, but choice is ___ [4-4] a. difficult to produce in an economy of 6 billion people. b. destroying the planet by giving people too many choices, including bad choices. c. not necessary to maximize choice to maximize welfare. d. never universally available, creating inequality and inequities in the world. e. dwindling as the global economy contracts and environmental conditions decline.
c. not necessary to maximize choice to maximize welfare.
17. In Shakespeare's Henry V, King Henry gave his rousing call to arms _____________________. [1-12] a. in the morning of battle at the Pais de Calais b. on Valentine's Day prior to the battle of Hastings c. on St. Crispin's Day at Agincourt d. on the feast of St. George just before the battle of Croix e. near St. Christopher's feast day near the city of Calais
c. on St. Crispin's Day at Agincourt
53. The Prosperity Index consists of eight elements, including economy, social capital _______ [3-10] a. health, education, opportunity and equality. b. liberty, education, entrepreneurship and authority. c. personal freedom, governance, and entrepreneurship. d. freedom, equality, opportinity, health and politics. e. opportunity, governance, education and health.
c. personal freedom, governance, and entrepreneurship.
98. Leadership is _______________ is positive change for the common good managed effectively. a. positive change. Effective leadership b. social influence. Social leadership c. systematic, purposeful influence. Prosocial leadership d. the management of human resources. Personal leadership e. prosocial by nature. The most effective form of leadership
c. systematic, purposeful influence. Prosocial leadership
35. Rosling noted three key inflection points or periods that accelerated growth: [2-10] a. the American Revolution, industrialization and progress in medicine. b. increased life expectancy, the end of world wars, and the Asian resurgence. c. the Industrial Revolution, political freedom and economic freedom. d. railroads, global air transportation and the Internet. e. the advent of the telephone, the Internet and cellular phone availability.
c. the Industrial Revolution, political freedom and economic freedom.
71. Gladwell concluded, "That is the final and beautiful lesson of Howard Moskowitz. That in embracing _______________________________, we will find a surer way to true happiness." [4-5] a. market research and segmentation b. human intuition and tastes c. the diversity of human beings d. the challenges of customer satisfaction e. the globalization of markets
c. the diversity of human beings
15. The seven key leader behaviors include these four concepts. [1-11] a. empowerment, rewards, motivation and punishers b. self-esteem, models, efficacy and reinforcement c. vision, goals, models, and punishment d. self-esteem, punishment, reinforcement and goals e. vision, goals, esteem and empowerment
c. vision, goals, models, and punishment
24. Ferguson closed by asking three questions, expressing doubts about the killer apps. __________________________ Can China do without killer app three? [2-3] a. What will the future apps be? Where will India be in ten years? b. Will America retain its global role? Is this the end of the West? c. What is the role of global politics? When will the West wake up? d. Can apps be deleted? Does sequence of download matter? e. Could this process be reversed? Can the West restore its deleted apps?
d. Can apps be deleted? Does sequence of download matter?
62. Friedman's gas station analysis described gas stations in the United States, Japan __________ [4-1] a. Italy and Russia b. Russia and Europe c. eastern Europe and Russia d. Europe and a communist country e. France, and a communist country
d. Europe and a communist country
44. The world's largest economies, as ranked by annual GDP, are the United States, China, and India, followed next by Japan, ______________________________ [3-3] a. Malaysia, Vietnam, Brazil, Nigeria and Mexico. b. France, Italy, the United Kingdom, Germany and Canada. c. England, France, Switzerland, Canada and Mexico. d. Germany, Russia, Brazil, the United Kingdom, France and Mexico. e. Brazil, Mexico, France, Germany and Italy.
d. Germany, Russia, Brazil, the United Kingdom, France and Mexico.
64. The five top countries in the rankings of political and economic freedom for past five years have remained the same. These five countries are ______________________________________. [4-2] a. Sweden, Denmark, Norway, Germany and Estonia b. Chile, Costa Rica, New Zealand, Mauritius, and Singapore c. Canada, United Kingdom, Australia, New Zealand, and Hog Kong d. Hong Kong, Singapore, Australia, New Zealand, and Switzerland e. Sweden, Switzerland, Singapore, Denmark and Norway
d. Hong Kong, Singapore, Australia, New Zealand, and Switzerland
87. New hero David Green said, "The market economy is based on a fundamental deception, where I know how much it costs me to make something but ___________________________________." [5-3] a. people are more important than profits, and purpose outweighs product b. that is not a sustainable model for this planet, so I chose to be a social entrepreneur c. rarely do customers find the value promised to them by corporations d. I'm going to fool you, the consumer into paying as much as possible e. it remains more important to satisfy wants than to meet basic needs of all people
d. I'm going to fool you, the consumer into paying as much as possible
79. The Customer exercise featured off-shoring alternatives in _____________________. a. Indonesia, India and Ireland b. China, Ireland and India c. Malaysia, Taiwan, and India d. Ireland, England, and India e. Indonesia, England and Vietnam
d. Ireland, England, and India
80. In the Customer exercise, there are alternatives to outsourcing, namely making the current operation less expensive or more effective. _______________________ Outsourcing is not a recent phenomenon. [4-11] a. Outsourcing requires a decision to close domestic alternatives. b. Outsourcing prevents domestic economies from growing while fueling globalization. c. Outsourcing fuels globalization at the expense of local wages and employment. d. Outsourcing creates wealth. Manufacturing jobs are disappearing worldwide. e. Outsourcing creates few opportunities for those previously unemployed.
d. Outsourcing creates wealth. Manufacturing jobs are disappearing worldwide.
60. The table on the last page this week highlighted the projected change in the rankings of world economies by 2030 and 2050. The heading highlighted that two countries are projected to fall out of today's top fifteen economies, ___________________________, while two new countries will be in the top fifteen by 2050, __________________________________. [3-14] a. Sweden and Singapore; India and China b. the United States and Japan; Nigeria and Vietnam c. Japan and Germany; South Africa and Vietnam d. South Korea and Canada; Indonesia and Nigeria e. Italy and France; Indonesia and Malaysia
d. South Korea and Canada; Indonesia and Nigeria
49. The countries with the highest social progress scores are New Zealand, ____________. [3-8] a. Austria, Denmark, Norway, Australia, and Sweden b. Sweden, the United States, Denmark, Norway and Finland c. Norway, Singapore, Sweden, Denmark and Finland d. Switzerland, Iceland, Netherlands, Norway, and Sweden e. Switzerland, Austria, Denmark, Sweden and Finland
d. Switzerland, Iceland, Netherlands, Norway, and Sweden
59. Rosling's closing talk also highlighted this characteristic of knowledge and ignorance. [3-13] a. The Internet brings home information not available in years past. b. The Internet provides a lot of data, but very little education or information. c. Global warming (or climate change) is producing wild swings in weather patterns. d. Unusual events are more interesting and they are exaggerated. e. Ignorance is less of a problem than is an inability to digest information.
d. Unusual events are more interesting and they are exaggerated.
4. Are the rich are getting richer and the poor are getting poorer? a. Incomes in developing countries have grown rapidly, but not in the United States. b. Emerging economies have generated poorly distributed new wealth. c. The rich are being taxed and the poor are doing better, due to wealth transfers. d. World poverty fell from 44 percent in 1980 to 13 percent of the people in 2000. e. The poor in the poorer countries have prospered; the American middle class suffered.
d. World poverty fell from 44 percent in 1980 to 13 percent of the people in 2000.
63. The Freedom exercise identified eight principals that captured the theme of the economic freedom index, including these: [1,2] a. economic growth, market capitalism and informal markets. b. inequitable incomes, personal growth, and stable money. c. expansive education, economic development and central banking. d. access to capital, low tax burdens, and informal markets. e. free markets, active banking and financial markets, and restrictions on trade policy.
d. access to capital, low tax burdens, and informal markets.
8. Pink said that the factors that produced higher performance and personal satisfaction were a. empowerment, self-reliance, and personal vision. b. self-efficacy, personal control and mastery. c. reduced stress, empowerment, and autonomy. d. autonomy, mastery, and purpose. e. incentives, goals, and empowerment.
d. autonomy, mastery, and purpose.
29. Capitalism emphasizes ____________. Socialism places its primary focus on the ____________. [2-6] a. production of profit; treatment of people b. accumulation of capital; common good c. production of goods and services; distribution of services and goods d. creation of wealth; distribution of wealth e. development of new resources and products; quality of life
d. creation of wealth; distribution of wealth
1. The purpose of this course is to help you to leave the world a better place than you found it and to _________________________________. a. teach students the importance of profit and wealth b. provide students with a metric for judging productive and unproductive firms c. educate students about the importance of prosocial leadership d. disabuse you of false or outdated notions e. create profits for the future of American competitiveness.
d. disabuse you of false or outdated notions
82. Efficiency is doing things right; _______________ means doing the right things. [5- 1] a. vision b. purpose c. prosocial leadership d. effectiveness e. leadership
d. effectiveness
96. McClelland identified two faces of power: ____________ (antisocial) and ______________ (prosocial). [5-8] a. individual; prosocial b. egotistical; collective c. personal; collective d. egoistic; social e. explicit; team-based
d. egoistic; social
39. We have seen a shift in an emphasis in wealth shifting from ____________________. [2-13] a. peasants, to princes to people b. land, to people, to innovation and then to knowledge c. kings and other monarchs, to middle managers, to markets d. hardware, to software, then to knoware e. land to water to air to space
d. hardware, to software, then to knoware
38. We have moved from a world order based on mythology, monarchies, militaries then mercantilism to more recent world orders based on __________________________. [2-13] a. managers, globalization and technology b. technology, transportation and politics c. merchandising, Marxism and monetary d. manufacturing, managers and markets e. Marxism, post-manufacturing, services and knowledge
d. manufacturing, managers and markets
90. The healthy living practices include: washing, clothes, wastewater, ________________ .[5-5] a. vegetables, housing, showers, and lighting b. sharing meals, lighting, hygiene, and bathing c. hygiene, cleaning, sharing and teaching d. nutrition, crowding, temperature and injury e. farming, sharing, cleaning and fixing
d. nutrition, crowding, temperature and injury
13. Fred Herzberg found that intrinsic aspects of the work motivate. He called these 'motivators.' Motivators include aspects of job or task itself that ____________________________. [1-9] a. create incentives, provide rewards, and give people purpose b. create intangible capital, provide a sense of satisfaction and generate creativity c. settle and clear the mind of external forces d. provide challenge, a sense of achievement, or responsibility e. give the employee a sense of purpose, a self-vision, and a reason to work hard
d. provide challenge, a sense of achievement, or responsibility
76. These models or theories of decision-making described how people make decisions, ___________. a. pricing theory, modeling, and marginal analysis b. propensity to consume, incrementalism, muddling through, and rational modeling c. personal choice, rational choice, personal creativity and corporate profit making d. rational, garbage can, satisficing and problem finding e. maximization, optimization, and satisfaction
d. rational, garbage can, satisficing and problem finding
33. In "The world isn't flat," Ghemawat showed a key graph that included the following metrics: a. food stamps, federal aid to education, and green investments. b. defense spending, foreign aid to dictators, and manufacturing imports. c. military budgets, environmental investments, and poverty prevention programs. d. telephone service, foreign direct investment, and export-to-GDP ratio. e. foreign aid, foreign student exchanges, and global investments.
d. telephone service, foreign direct investment, and export-to-GDP ratio.
14. Ed Lawler believes that expectancies motivate. People pursue actions that they estimate will maximize the net outcome. Estimates are affected by (a) likelihood of achieving a first-level outcome (e.g., sell a product), (b) the likelihood of obtaining a second-level outcome based on success, (e.g., earn a commission for selling the product) and (c) ______________________________. a. the likelihood of the reward creating satisfaction b. the likelihood that the reward will provide a meaningful income or result c. the chance that the behavior can be repeated in the future d. the desirability of that outcome (e.g., the value of the sales commission) e. the sense that the work is important, meaningful and prosocial
d. the desirability of that outcome (e.g., the value of the sales commission)
25. A basic understanding or definition of capitalism requires two principles or rights: ___________. a. the right to own and the right to earn a profit b. the right to retain wealth and the right to act independent of government c. the right to an education and the right to work without joining a union d. the right to own (i.e., private) property and the right to trade e. the right to globalization and the right to retain a meaningful portion of your earnings
d. the right to own (i.e., private) property and the right to trade
70. The introduction to the Gladwell talk noted that a diverse population of billions of customers has diverse tastes; ____________________________. [4-4] a. people seek multiple perfect solutions, not the perfect solution b. the perfect is the enemy of the good c. choice is a prerequisite to consumer satisfaction d. there is no one single best mustard, coffee, or spaghetti sauce e. globalization has created more customers and they seek more choices
d. there is no one single best mustard, coffee, or spaghetti sauce
75. Buffalo's public school budget for _____________ per pupil per year, not counting significant capital costs. Ninety-six percent of the funding came from the state (82%), county and city. [4-6] a. 45,000 K-12 students was $900 million, spending about $20,000 b. 25,000 K-12 students $500 million, spending about $20,000 c. 33,000 K-12 students was $656 million, spending about $20,000 d. 40,000 K-12 students was $1 billion, spending about $25,000 e. 34,000 K-12 students was $800 million, spending about $23,000
e. 34,000 K-12 students was $800 million, spending about $23,000
93. Which of the following is not true? [5-6] a. Not all leaders pursue positive goals. b. Not all leaders are good managers. c. Not all managers are good leaders. d. Prosocial leaders are good managers. e. All four of the above are true
e. All four of the above are true
50. A Heritage Foundation report noted these conditions of the poor in Americans. [3-9] a. 46% of all poor households own their own homes. b. 76% of poor households have A/C (30 years ago, 36% of U.S. had A/C). c. The average poor American has more living space than the average individual in Paris. d. Nearly three-quarters of poor households own a car; 30 % own 2 or more. e. All of the above are true.
e. All of the above are true.
54. The nations topping the 2014 prosperity scale are Norway, Switzerland, New Zealand, ___ [3-11] a. Sweden, Sweden, Denmark, Hong Kong and Chile. b. Austria, Australia, Sweden, Singapore, and Norway. c. Canada, Austria, Japan and Finland. d. Singapore, Sweden, the United States, Australia and Denmark. e. Denmark, Canada, Sweden, Australia, and Finland.
e. Denmark, Canada, Sweden, Australia, and Finland.
99. Kickstart's five steps: What business will be profitable? What new tools make this possible? How can we produce these tools? How do we convince people to invest? __________________ [5-10] a. What do we do next? b. Will this have a lasting impact? c. When will we know that we have succeeded? d. Who benefits the most from this progress? e. Is this going as planned?
e. Is this going as planned?
83. Based on the Results exercise, these are key leader practices for getting results. [5-2] a. Maintain clear rules, specify operating procedures, and communicate often. b. Communicate well, motivate with goals, and provide training and development. c. Show your value-added role, proactively reduce processes, and set good goals. d. Empower teams, motivate with goals and be dedicated to improvement. e. Lead by example, foster teamwork, and remove performance barriers.
e. Lead by example, foster teamwork, and remove performance barriers.
40. In Matt Ridley's "When ideas have sex," he cited events that actually happened in his lifetime. Which of the following is NOT one of those he cited? [2-14] a. Child mortality is down by two-thirds b. Per-capita food production is up by a third. c. Average per-capita income of the average person on the planet has tripled. d. Lifespan is up by 30 percent in my lifetime. e. Obesity rates in poor countries have tripled.
e. Obesity rates in poor countries have tripled.
45. The World Bank measured nations' per capita wealth. As measured by wealth per capita, the richest countries in 2000 were ___________________ [3-4] a. Sweden, Switzerland, Norway, New Zealand, Australia, Japan and Belgium. b. the United States, Canada, New Zealand, Hogg Kong and Australia. c. Japan, New Zealand, Canada, Denmark, Norway, Belgium and Austria. d. Sweden, Switzerland, Singapore, New Zealand, Australia, Austria, and Japan. e. Switzerland, Denmark, Sweden, the United States, Germany, Japan, and Austria.
e. Switzerland, Denmark, Sweden, the United States, Germany, Japan, and Austria.
28. The only way an organization can continue to create wealth and customers is through developing and maintaining ____________________________ [2-6] a. market share to ensure long-term economic growth. b. good customer and employee relations, which help to produce better products. c. long-term customer loyalty, achieved through continuous new product development. d. competitive prices that make products affordable and markets grow. e. a sustainable comparative advantage.
e. a sustainable comparative advantage.
20. In the Project exercise results, lower personal error scores mean better __________. A team score lower than any and all of the team members' personal scores demonstrates _____________. [1-16] a. leadership; followership b. intuition; management skills c. team work; good team work d. leadership aptitude; collaboration e. management aptitude; effective teamwork
e. management aptitude; effective teamwork
22. Per Niall Ferguson, by the 1970s the average American was __________________________." [2-2] a. going broke faster than at any time in the past b. enjoying the fruits of its successes and triumphs in World War II c. starting to realize that Asia was in its ascendancy, and did not like it one bi d. healthier, richer, and better educated than any other country in the world e. nearly twenty times richer than the average Chinese.
e. nearly twenty times richer than the average Chinese.
61. A wealth-creating society relies upon _______________________ to further sustainable development. ______________________need to be able to make choices; they need the political and economic freedom to exercise those choices, and the economic resources to afford those choices. [4-1] a. capitalism and customers; Consumers b. choice; Customers c. markets; Customers d. trade and private property; All people e. political and economic freedom; Customers, citizens and employees
e. political and economic freedom; Customers, citizens and employees
56. There is a consistent theme across all of the measures of sustainable development and human progress: limited government, _________________________________, capitalism (property rights and trade), and negative human rights (the right to be protected but also left alone), the rule of law, and education. [3-12] a. fairness, competitiveness, innovation b. merit discrimination, human rights, civil rights c. the work ethic and consumerism d. liberty and equality, tolerance e. productivity with frugality, innovation and entrepreneurship
e. productivity with frugality, innovation and entrepreneurship
10. The critical analysis of Pink's talk concluded: Providing a reward to reinforce performance has shown a _________________. To NOT offer reinforcement would discourage good performance. a. troubling pattern of mis-management by poor leadership b. not been offered often enough in the public sector c. total misunderstanding of the research on reinforcement d. powerful negative effect when applied unfairly, randomly, or unethically e. profoundly positive effect on future performance
e. profoundly positive effect on future performance
91. Fourth-level prosocial behavior can be described as _______________ [5-6] a. combining altruism, service and prosocial behavior. b. elevating personal prosocial behavior into an organizational element. c. defining the nature of government welfare and support programs for the poor. d. replacing efforts to make entrepreneurship personal, by making it organizational. e. teaching those who teach a village to raise fish.
e. teaching those who teach a village to raise fish.
9. Dan Pink claimed, "If we get past _________________, we can strengthen our businesses, we can solve a lot of those candle problems, and maybe, maybe, maybe we can change the world." a. compliance as a way of keeping bosses happy b. trying to pay people for performance c. believing that we can motivate people with incentives d. teaching people to do routine work e. this lazy, dangerous, ideology of carrots and sticks
e. this lazy, dangerous, ideology of carrots and sticks
89. Prosocial entrepreneurship requires three elements: _________________________________ [5-4] a. time, money and effort b. service, charity and generosity. c. people, profit and leadership d. social innovation, sustainability and development. e. vision, funding and skills.
e. vision, funding and skills.
26. Society grows and prospers only through the creation of additional forms and amounts of wealth. Wealth is an outcome, result, or asset; _________________________ [2-5] a. profit is the best form of wealth. Wealth is natural, produced or social. b. income is the best determinant of wealth. Wealth is best measured by GDP. c. people are a country's greatest assets. Land is important for the natural its wealth. d. income drives consumption. Consumption reduces wealth creation. e. wealth creation is a process of adding value. Wealth can be tangible or intangible.
e. wealth creation is a process of adding value. Wealth can be tangible or intangible.