Busn 1001 quizzes

Consider an exchange rate situation in which 1 Indian rupee equals 0.40 Japanese yen. Given this information, which of the following statements is true?

A Japanese tourist can buy more goods and services with India

The value of all natural resources tends to rise with low demand, high supply, or both. T/F

False

Antonsen Inc., an accounting firm in Texas, follows certain guidelines while providing consulting services to a firm. One such guideline is to limit the services it provides to the firms it audits. The CEO of Antonsen Inc. is also required to certify the validity of the company's financial statements. In this scenario, Antonsen Inc. most likely abides by the requirements of the _____.

Sarbanes-Oxley Act

The residents of North Barkminster, a suburb in the European country of Geratow, protest against a large corporation that is newly established in the area. They complain that there has been a rise in respiratory illnesses among the people because of the pollution caused by employee commute following the company's establishment. In this scenario, the residents of North Barkminster are protesting against the company's _____ emissions

Scope 3

In the context of the history of American business, which of the following statements is true of the production era?

The assembly line became standard across major manufacturing industries

In the context of the history of American business, which of the following statements is true of the marketing era?

The balance of power shifted away from producers towards consumers

In the context of factors of production, which of the following statements is true of entrepreneurs?

They thrive in an environment that supports economic freedom

Ancusia, an East Asian country, was plagued by war and corruption for several years. This led to poor economic conditions, and the government was compelled to borrow funds from other nations. Because of the slow economic growth in the country, the government could repay only 15% of its debts. In this scenario, the amount that the government is yet to repay is known as _____.

a revenue deficit

Ithilium, a European country, is able to produce more electronics than Kilim, a North American country, even though both countries use the same amount of resources. Given this information, it can be deduced that Ithilium has a(n):

absolute advantage over Kilim

In the fiscal year 2015-2016, Nescarto, an African country, imported goods worth $18 million and exported goods worth $20 million. It also borrowed $40 million from other countries. In this scenario, Nescarto had a _____ during 2015-2016.

balance of payment surplus

Which of the following statements best defines the producer price index (PPI)?

measure the change in weight-average overtime in a consumer market basket of goods

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

Tornio, a steel company, imports iron ore from Marquette iron range in Michigan. In this scenario, the iron ore obtained by Tornio can be classified as _____.

natural resources

Ethics refer to:

sets of beliefs about right and wrong

In Fidaro, a North American country, punctuality is considered a sign of integrity. On the other hand, in Gwary, an African country, punctuality is considered a sign of anxiety and is given less importance. This exemplifies:

sociocultural differences

The government of Keiron, a South Asian country, noticed a visible decline in the country's natural resources. To counter this, it passed an act that mandated all businesses to reduce wastage and adopt more eco-friendly methods of production. In the given scenario, the government of Keiron most likely embraced the idea of _____.

sustainable development

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

technological environment

Romernia, an Asian country, imported goods and services worth $700 million in the last fiscal year. It exported goods worth $400 million in the same year. The difference in the value of Romernia's imports and exports is known as _____.

the balance of trade

In the context of monetary policy, if the Fed decreases the reserve requirement, _____.

there will be more loans available

A chocolate manufacturing company promoted a high-calorie product without providing complete information about the risks involved in its consumption. In the context of business behavior, the company's business conduct was:

legal and unethical

Sloimekia can manufacture more of a certain kind of cloth than its neighboring countries, although they all have the same amount of resources for the cloth's production. In this scenario, which of the following statements is true of Sloimekia?

It enjoys an absolute advantage in terms of particular cloth it produces

Jordon, a senior executive at a marketing firm, used to regularly meet international clients to discuss future projects. After one of his recent meetings went wrong, Jordan, in a fit of rage, threw a paper weight at his junior associate. The firm's management immediately terminated Jordan for this act. In the context of business ethics, Jordon was guilty of _____ in this scenario.

an ethical lapse

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

In the context of legal and ethical dimensions of business conducts, it is illegal but ethical to:

collaborate with other medical clinics to guarantee low prices in low-income counties

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 the history of American business, the------- emerged in the second half of the 1800s, by building on the foundation of the industrial revolution.

entrepreneurship era

Ethan, an employee in a corporate company, is asked to do a systematic evaluation of the company's adherence to its social and ethical standards. In this case, Ethan should first:

establish the ethics and social responsibility goals that the company seeks to achieve

Despite the growth rates in many high-population countries being weak, most of these nations remain ahead of the United States in terms of development and prosperity. T/F

false

Cornell Health Care, a renowned American hospital, regularly collaborates with other health-care centers to provide small medical clinics in low-income countries drugs and medical services at lower than normal prices. In this scenario, this practice of collusion by Cornell Health Care is _____.

illegal and ethical

Real gross domestic product (GDP) measures the total value of final goods and services produced within a nation's physical boundaries over a given period of time, adjusted for:

inflation

Mercy's Apparels, a fabric company, was established post World War II with the aim of catering to the demands of consumers looking for affordable quality clothing. To differentiate itself from its competitors, the company developed a distinctive identity as the producer of budget clothing. In the context of the history of American business, Mercy's Apparels was most likely established during the _____.

marketing era

Which of the following is the most costly form of foreign direct investment?

offshoring

The Fed:

performs banking services for commercial banks in districts where it operates

In a business cycle, the is the transition period between contraction and expansion.

recovery

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

Timothy, a staff member at a university, wants to purchase a house. As he does not have sufficient funds, he is forced to take a loan. Given his low credit score, it is highly unlikely that he will be able to repay the borrowed money. In this scenario, Timothy should apply for a(n) _____.

subprime mortgage loan

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

Capital, one of the factors of production, includes machines, tools, buildings, information, and technology. T/F

true

Socialist economies tend to have high taxes, which are designed to distribute wealth more evenly through society. T/F

true

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. T/F

true