BA 1301 EXAM 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.
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.
Businesses engage in environmental protection activities to show their responsibility to their general public stakeholders.
True
It is a firm's responsibility to its customers to deliver what it has promised.
True
One of the advantages multinational corporations have over other companies is their ability to sidestep regulatory difficulties.
True
Social factors influence what, how, where, and when to purchase products or services.
True
The tax that the United States imposes on imported carbon steel products is called a tariff.
True
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
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
Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.
justice
Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:
legality and responsibility
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
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
With a communist economy system:
none of the above is true
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
The key element in socialism is:
governmental control
The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n):
import
Last year, a mother in a small African nation could buy a pound of flour for the U.S. equivalent of $1.30. Six months ago, an identical pound of flour costs $3.40. Today she would need $5.60 to buy that pound of flour. This example of the general upward movement of prices is called:
inflation
The situation in which the average of all prices of products is rising is called:
inflation
Utilitarianism
is difficult to implement because it is hard to tell how one decision will impact a large number of people
Utilitarianism:
is difficult to implement because it is hard to tell how one decision will impact a large number of people
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
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
The Northwest Cherry Growers (headquartered in the state of Washington) sells much of its locally grown produce to Taiwan. _____ was the easiest and least expensive way for the growers' association to sell to global markets.
Exporting
As a factor of production, capital includes money.
False
It takes four consecutive quarters of decline in the GDP for economists to consider the economy to be
False
Labor, as a factor of production, relates only to the production of manufactured goods; services are not included.
False
The only social responsibility that a company has to its investors is an economic responsibility--it must make a profit.
False
The philosophy of utilitarianism is used to explain why restaurants, theaters, and hotels should make themselves handicapped accessible.
False
To be a useful code of ethics, the code should offer broad policies and procedures rather than detailed rules.
False
The _____ prints money and controls its circulation.
Federal Reserve System
The following statements about ethics training is true EXCEPT?
Fewer than half of all American companies have some type of ethics training programs.
Which of the following statements about a socialist economic system is true?
The government owns or controls the major industries.
A business is an organization that strives for a profit by providing goods and services desired by its customers.
True
Full employment means 94-96 percent of the working force is employed.
True
Human rights include an individual's right to life, to freedom, and to the pursuit of happiness.
True
Monopolistic competition is a market structure in which entry is easy.
True
People who combine natural resources, labor, and capital in a profitable venture are called entrepreneurs.
True
The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.
True
When Congress passes a law to raise individual tax rates, it is creating fiscal policy.
True
_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.
Utilitarianism
Corrine Attlee has always enjoyed cooking more than doing anything else. Atlee has decided to quit her job as a college professor and invest her life savings in starting a restaurant. Attlee is an example of a(n):
entrepreneur
The World Trade Organization (WTO):
has emerged as the world's most powerful institution for reducing trade barriers and opening markets
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
Which of the following is an example of a factor of production?
labor
A market in which there are a large number of firms that differentiate their products is called:
monopolistic competition
Wal-Mart ran a series of ads in trade journals with the following headline: "We're Looking for Quality Products That Are Guaranteed Not to Last." What Wal-Mart was in fact doing was asking its suppliers to develop more environmentally friendly products and to use material that could be recycled. This concern about the environment is one way that Wal-Mart practices:
social responsibility
A(n)_____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.
federal budget deficit
When the government decides to cut military spending, it is implementing a(n) _____ policy.
fiscal
In a large metropolitan market, it is relatively easy to set up a law office. The ease of entry explains why you will find hundreds of lawyers listed in the New York City phone book. Each lawyer is a close substitute for another but with slight differences. Which of the following market structures best describes the one in which lawyers operate?
monopolistic competition
When demand and supply meet, the price of the product or service is established. This is the point of:
equilibrium
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
Some multinational corporations are so large that they resemble small countries.
true
Protectionism:
uses artificial barriers to protect domestic industries
Successful owners and managers must continually study which of the following elements of the environment to remain successful?
All of the above
Which of the following is an example of an unethical business activity?
All of the above are examples of unethical business activities.
The government of Cuba owns or controls all of the basic industries in their economy. Cuba operates in which type of economic system?
Communism
_____ 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.
All businesses approach ethics the same way.
False
_____ are all the individuals or groups to whom a business has a responsibility.
Stakeholders
In Canada, the government owns the communications, transportation, and utilities industries, while most other activity is carried on by private enterprise. Canada is an example of:
a mixed economy
PGE supplies all of the electricity to Portland, Oregon. PGE is an example of:
a pure monopoly
When a single firm accounts for 100 percent of industry sales, it is an example of:
a pure monopoly
Which of the following would be stakeholders for a manufacturer of agricultural pesticides?
all of the above
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
In 1947, the largest brewer in the U.S., Schlitz, had a 4.57 percent share of the domestic market. (Anheuser-Busch was number four in those days). The top ten brewers, including the number one brewer, had 29.29 percent of the domestic market. Over 70 percent of the domestic market was controlled by "all other" brewers. By the year 2001 the largest brewer was Anheuser-Busch, with a 54.76 share of the domestic market. The top ten brewers held 97.04 percent share of the domestic market in 2001. Thus, the brewing industry in the U.S. became a(n) _____ market structure.
oligopoly
For most agricultural products, farmers produce homogeneous products, sell them to a common market, and generally cannot affect prices greatly. This is an example of which kind of market structure?
perfect competition
The highest level of the corporate social responsibility pyramid is:
philanthropic responsibilities
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 is the BEST example of a not-for-profit business?
the American Cancer Society
Which of the following is NOT an example of a good that would be sold in a department store?
the advice of a wedding planner
Which of the following is the best example of a good?
the birthday candles you purchased to go on your sister's birthday cake
The most fundamental reason for the growth in world trade is probably due to:
the need for businesses to expand their markets
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
Social responsibility goes beyond obligations provided by law or union contract. Two important aspects of social responsibility are that the obligation is both:
voluntary and broad
The unemployment rate is the percentage of the total work force that is not working but is:
actively looking for work
The government does not consider full employment to mean 100 percent of its citizens are employed because:
all of the above conditions can and do exist
An economic system based on complete freedom of trade and little, if any, government control is known as:
capitalism
Individual ownership of property is a key element in:
capitalism
The _____ for the Music Teacher's National Associations establishes a standard of conduct and recommends a set of responsibilities teachers should have toward students, colleagues and the public. These guidelines assist the professional music teacher in gaining the respect of peers and avoiding conflicts and complaints with students and others. It points out to members what are and what are not considered fair, honest and reasonable practice when dealing with students, colleagues and the public, it provides guidance for such aspects as advertising practices, appropriate relationships, and personal and professional integrity.
code of ethics
Which of the following is NOT an example of a factor of production?
competition
A decline in real GDP that lasts for two consecutive quarters is called a(n):
recession
As soon as any nation has experienced two consecutive quarterly declines of its gross domestic product, that nation will be in a(n):
recession
Strategic giving:
refers to the practice of tying philanthropy closely to the corporation's mission or goals
Which one characteristic most clearly defines a market structure?
the number of suppliers in a market
Which of the following is the best example of a service?
the pleasure you derive from seeing a good play
In 2018, Country A exported $1.237 billion and imported products valued at $5.552 billion. The difference between the dollar value of its exports and imports represents a:
trade deficit
In 2018, Country A exported $84.9 billion and imported products valued at $74.69 billion. The difference between the dollar value of its exports and imports represents a:
trade surplus
Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.
False
The difference in value between a country's imports and exports is called its balance of trade.
True
The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society.
True
