BUSN 1-4

Quotas are taxes levied against imports.

FALSE

_____ refers to the unrestricted movement of goods and services across international borders.

Free trade

In the context of the free market system , which of the following statements is true of pure competition?

No single producer has any control over the price.

Each year, the Federal Open Market Committee holds eight regularly scheduled meetings to make decisions about open market operations.

TRUE

In the context of business ethics, _____ refers to a decision that involves a conflict of values.

an ethical dilemma

A _____ refers to the overage that occurs when more money flows into a nation than out of that nation.

balance of payments surplus

The United States goes through a period of recession because of the continuous decrease in the nation's gross domestic product. The Fed intervenes and improves the situation by reducing the discount rate. This move by the Fed will result in:

banks obtaining funds at a lower cost

In the context of social responsibility, a corporation that does not have profits as a first priority is referred to as a B-Corp, which stands for _____.

benefit corporation

Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a _____.

whistle-blower

The traditional retirement age in the United States is 60.

FALSE

Which of the following statements is true of successful firms?

They deliver unsurpassed value to their customers.

The government of Lebitz, a European country, learns that low-priced textile imports from Pruneia, an Asian country, are affecting the sales of domestic textile companies. The Lebitzian government decides to levy a 6% tax on all textile goods imported from other countries. In this scenario, which of the following trade restrictions does the Lebitzian government impose?

A tariff

In the context of the technological environment of business, which of the following statements is true of e-commerce?

Business-to-business selling comprises the vast majority of total e-commerce sales.

Which of the following is a difference between inflation and deflation?

Inflation is a period of rising average prices across an economy, whereas deflation is a period of falling average prices across the economy.

The district of Dansas in Nerito, a European country, is a major producer of walnuts. All producers in the district sell packaged walnuts. The market structure is flexible enough for producers to enter and leave the market as and when they wish, but no single producer has control over the prices of the product. Which of the following market structures exists in Dansas?

Pure competition

The Canadian government issues a legal notice to one of its coal manufacturing companies after the government learns that the heating equipment purchased by the company emits a higher level of gases than the level permitted by the Environmental Protection Agency. In this scenario, the coal manufacturing company is in violation of exceeding the level of its _____ emissions.

Scope 2

In the context of capitalist economy, the right to free choice directly feeds competition.

TRUE

In the context of international trade, often countries with the highest trade barriers have the least competition.

TRUE

Sustainable development means weaving environmentalism throughout the business decision-making process.

TRUE

In the context of monetary policy, which of the following is a result of a decrease in the reserve requirement?

The availability of credit increases.

Restazure, a beauty therapy center, focuses on customer satisfaction and building long-term relationships with customers. The firm ensures that customers are provided with high-quality services, and feedback is collected after every customer visit. It also provides its members with seasonal discounts and points every time they avail any of the center's services. In this context, which dimension of the business environment is affected the most?

The competitive environment

Danny is a citizen of Finiz, a North American country. He is able to run his handicraft business without any intervention from the government because Finiz has an economic system that encourages private ownership. He is able to make independent decisions for his business and has the freedom to decide the prices of his products. In this scenario, Finiz most likely has a _____.

capitalist economy

Finwes is an advertising company. Because of certain untoward incidents in the company, the management decides to create a formal written document that would guide the employees in making right decisions in various professional situations. In this scenario, the management wants to create a _____.

code of ethics

During an especially difficult year of weakening financial conditions, the government of Geriva, a European nation, borrows money to meet its financial obligations. However, once the borrowed amount reaches a certain limit, the government is not allowed to borrow more money. If this was to happen in the United States, it could be said that this is because the government has hit the _____.

debt ceiling

Pyoiunalek's, a restaurant chain, markets and endorses its businesses in other countries by offering buyers the rights to launch and operate the restaurant in that country. It lends financial and marketing assistance to the buyers. In this scenario, Pyoiunalek's is employing the strategy of _____ to reach global markets.

foreign franchising

Aidan is a college student. As part of his economics project, he has to collect data on the consumption patterns of the households in his locality. In this scenario, Aidan is most likely involved in the study of _____.

microeconomics

Twilight Glitters sells ornate diamond jewelry. The company obtains diamond ore from the Yakutia region of Russia. In this scenario, the ore obtained by Twilight Glitters can be classified as _____.

natural resources

Monclaire, a chain of luxury hotels, uses social media for promotional purposes. It also maintains a dedicated interactive Web page where customers write detailed reviews and discuss their experiences. In the context of the history of American business, Monclaire most likely belongs to the _____.

relationship era

Norman Phone Inc. is a leading cell phone manufacturer who recently launched Omn-1 model. Even before the sales of Omn-1 model could reach its peak, the company launched the next version, Omn-2. Omn-2 overtook the sales of the Omn-1 model and also of its competitors' products. This helped Norman Phone Inc. to maintain its position as a leading-edge cell phone manufacturer. This scenario demonstrates the importance of _____ as a key source of competitive advantage.

speed-to-market

In the context of a business environment, computers, telecommunications, and other digital tools are considered to be part of the _____.

technological environment

Which of the following countries most likely has a comparative advantage?

An Asian country that produces quality automobiles with little opportunity cost compared to other countries

In the context of social responsibility, which of the following is a way of contributing to nonprofits?

Cause-related marketing

Which of the following can be considered a business?

Davent, an online shopping portal that offers discounted prices on clothes

_____ is the authority granted by a domestic firm to an overseas firm for the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area.

Foreign licensing

Luchen Modo, a software development firm in Asia, launched a new software for smartphones that allowed users to remotely control certain functions and features of their vehicles, such as ignition, windshields, and headlights. The success of this technology prompted other companies across the world to produce similar software. In this scenario, which of the following is most likely to have influenced other companies to produce similar softwar

Inflow of innovation

The consumer market basket of goods and services, in which the consumer price index (CPI) measures the change in weighted-average price over time, is created by the U.S. Bureau of Labor Statistics.

TRUE

Which of the following statements is true about socialist economy?

Tax revenues fund services that citizens in free enterprise systems would have to pay for themselves.

Renault and Renoir, a law firm, is infamous for influencing witnesses with the use of bribes. Because of this corruption, the law firm has won many cases that it would have otherwise lost. In this context, which dimension of the business environment is affected the most?

The economic environment

Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?

The social environment

In the context of today's business environment, which of the following statements is true of millennials ?

They can be trained and developed to fill the leadership gap that is being created by the retirement of baby boomers.

Which of the following is a recent advancement in the Western European countries that developed powerful socialist economies in the decades after World War II?

They have imposed stiff austerity measures to control government spending

In the context of ethics and social responsibility in the global arena, which of the following statements is true of a business's responsibility to workers abroad?

When deciding living wages, companies must bring together their own values with the laws of both the United States and their host countries.

The term _____ refers to the shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports.

trade deficit

In the context of monitoring ethics and social responsibility, which of the following is the starting point of a social audit?

Establishing goals

_____ refers to selling products in foreign nations that have been produced or grown domestically.

Exporting

Companies that choose to export products to a foreign country spend more to enter that market than companies that choose to build their own factories.

FALSE

Demographic factors include the milestones achieved during the developments in the field of computers, telecommunications, and other digital products.

FALSE

In the context of the legal and ethical dimensions of business conduct, practicing collusion with competitors is legal but unethical.

FALSE

Socially responsible employers stick to the state laws and do not go beyond them when it comes to providing a good working environment to employees.

FALSE

Speed-to-market is the rate at which a company's competitors copy its product innovations.

FALSE

Larry is part of the Board of Governors that manages U.S. monetary policy. He has been elected by the President to serve a single 14-year term. In addition to setting the monetary policy, he is responsible for extending banking services to commercial banks. In this scenario, Larry is most likely part of the _____.

Federal Reserve

A college has contracted a construction company to build a bookstore for its new campus. In the context of factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred to as _____.

capital

Angorasia, an Asian country, supports a free market system. The flexible economy of the country makes it fairly easy for new sellers to enter the market, which in turn gives buyers a variety of choices in terms of products and services. Given this information, it can be said that Angorasia supports _____.

consumerism

Brestine Inc., a European multinational corporation, wants to expand its customer base and decides to target the Asian market. As most Asian countries have comparatively low per capita income, the company introduces cheaper versions of its products that would appeal to the target market. In this scenario, Brestine Inc. is most likely facing the barrier of _____.

economic differences

In the context of codes of ethics, the best-known code is the Johnson & Johnson Credo, which has guided the company profitably through a number of crises. One of the striking elements of the credo is the firm focus on:

fairness.

In the context of the legal and ethical dimensions of business conduct, embezzling money is:

illegal and unethical.

Quezi, an East Asian country, borrows $300 million from Muranico, a North American country, to fund its infrastructure projects. Quezi exports petroleum worth $700 million to Muranico and other countries. Besides this, Quezi provides foreign aid worth $40 million. In this scenario, this flow of money into and out of Quezi can be measured by _____.

the balance of payments

Macroeconomics involves the study of:

the gross domestic product of a country.

Robert Lane, former CEO of Deere, a highly performing, highly ethical corporation, believes in the importance of senior management commitment to ethics, but he points out that the "tone at the top" must be reinforced by the actual behavior observed by suppliers, dealers, customers, and employees. At Deere, this is summed up in highly visible, frequently referenced shorthand known as:

the how.

The total value of the goods exported by Maulini, a South American country, in the last fiscal year was lower in comparison to the total value of the goods imported by it. Given this information, Maulini had a _____ in the last fiscal year.

trade deficit