Intro to Business- Exam One (Set Two)

_____ inflation is triggered by increases in production costs which increase the costs of final goods and services.

cost-push

The Department of Natural Resources spent money to promote the use of national parks as perfect sites for a summer vacation causing motels, campgrounds and other tourist attractions in the private sector to become less attractive to consumers. Consequently consumers spent more money on trips to the national parks and less money in the private sector for their vacations resulting in _____.

crowding out

Laws relating to the alcoholic content of beer have required many imported brands of beer to be labeled malt liquor when it is sold in the United States. In addition, all beer sold in the U.S. must contain an expiration date or a "best-buy" date. These laws have made it difficult for small foreign breweries to enter the U.S. market. These laws are an example of:

customs regulation

The most basic measure of economic growth is the:

Gross Domestic Product

The _____ is an international bank that normally provides short-term loans to countries that are unable to meet their budgetary expenses.

International Monetary Fund

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.

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

Singapore has granted a(n) _____ on the importation of beer and stout made in the Philippines. This means that beer and stout made in the Philippines can sell for less in Singapore than beer and stout made by New Zealand or the United States.

preferential tariff

_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

profit

The economic system under which basic industries are operated by the government or owned by the private sector under strong government control is called:

socialism

Archer Daniels Midland Co. (ADM) has joined with Baron Spices and Seasonings to market spices, seasonings and herbs to the foodservice industry. ADM will provide the raw materials, and Baron will act as the distributor and use its already existing relationships with participants in the food service industry to make a success of this:

strategic alliance

Kraft Foods Inc. joined with the National Latino Children's Institute to announce Salsa, Sabor y Salud - a first-of-its-kind healthy lifestyles educational program designed by Latinos for Latinos. The program was created by NLCI in partnership with Kraft to support Hispanic families, a population particularly at risk for obesity and accompanying health problems. Kraft donated $2 million to the program's startup. This donation is an example of:

strategic giving

Besides tariffs, a government can use a number of other tools to restrict trade. Which of the following is NOT a tool aimed at restricting trade?

subsidy

Fiscal policy is concerned with:

taxation and spending

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

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play

The slope of the supply curve is:

upward and to the right

The combination of two companies that join to form one company is called a:

merger

_____ is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries.

nationalism

An S corporation is generally set up to:

reduce tax burdens

Strategic giving:

refers to the practice of tying philanthropy closely to the corporation's mission or goals

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

Stewed Tomatoes was an "all-girl power-pop trio." Its three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created Materville Studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville Studios is a(n):

partnership

When a single firm accounts for 100 percent of industry sales, it is an example of:

pure monopoly

A decline in real GDP that lasts for two consecutive quarters is called a(n):

recession

is the total amount of money that flows in and out of a country.

balance of payments

_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.

demand-pull

The Japanese automobile manufacturer Mazda produces the Premacy SUV in Haikou, China at a plant it built in the Chinese province. Mazda is using _____ to engage in global trading.

direct foreign investment

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

The World Trade Organization (WTO):

has emerged as the world's most powerful institution for reducing trade barriers and opening markets

North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company. Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.

horizontal

The average price of construction materials increased by 8.1 percent in 2005. The head of the Home Builders Association said it was due totally to increases in lumber, metal, and labor costs. The 8.1 percent increase is probably an example of:

inflation

Jamaica has 35 airports, 18,700 kilometers of paved and unpaved road and a total of 272 kilometers of railroad track. This is a partial description of the nation's:

infrastructure

Social investing:

is the practice of limiting investments to companies that have ethical policies that match those of the investor

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

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:

mixed economy

_____ refers to a government's programs for controlling the amount of money in circulation.

monetary policy

Wal-Mart has announced that it will only sell fresh and frozen fish that come from environmentally sound sources and bear the label of the Marine Stewardship Council. Wal-Mart's size gives it a unique opportunity to improve the fishing industry. This concern for _____ is one of many initiatives Wal-Mart is introducing to improve our environment.

social responsibility

Seeds of Change manufactures and markets certified organic entrees. Its mission reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." In support of this mission, the company donates money to support environmental protection activities. In other words, Seeds of Change engages in:

strategic giving

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

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

world bank

_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.

Entrepreneurs

Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper. At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. What was Souza's profit for her summer job?

$125

Which of the following statements about the interaction of demand and supply is true?

At prices below equilibrium, demand exceeds supply.

Which of the following countries has a high standard of living?

United States

Which of the following statements about utilitarianism is true?

Utilitarianism holds that an action that affects the majority adversely is morally wrong.

In perfect competition, there is:

a large number of sellers producing nearly identical products

IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM, plans to fold MRO into its software unit. This is an example of a(n):

acquisition

The two types of cooperatives are:

buyer and seller

When the economy is in a recession, many companies must lay off workers, which causes _____ unemployment.

cyclical

_____ is the quantity of a good or service that people are willing to buy at various prices.

demand

Which of the following is NOT a form of unemployment?

fiscal unemployment

Three Sisters Specialty Foods, owned by Judith Coker, Millie Humphreys, and Jade Watson, sells eggless cake mixes for people on a restricted diet. Coker recently purchased an industrial grade mixer without conferring with her sisters who were upset when they learned that they were all three liable for the payments on the mixer. Three Sisters is an example of a:

general partnership

A preferential tariff:

gives tariff advantages to one country over others

Laws have curtailed smoking, and as a result, the sale of cigarettes is down. Rather than fighting the law, the cigarette industry is looking for ways to take their business beyond cigarettes. Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown consistent sales gains over the last decade. In terms of the social responsibility pyramid, at which level is the cigarette industry operating?

legal

U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of:

licensing

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

Which of the following is probably the MOST difficult environmental factor for owners and managers to forecast, influence, or integrate into business plans?

social change

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

Utilitarianism:

is difficult to implement because it is hard to tell how one decision will impact a large number of people

An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n):

oligopoly

The unemployment rate is the percentage of the total work force that is not working but is:

actively looking for work

Which of the following is a characteristic of pure competition?

all of the above; a large number of small firms all the firms in the market sell similar products buyers and sellers in the market are well-informed about the product entry into and exit from the market is easy

Which of the following provides the legal and managerial guidelines for operating the firm?

bylaws

Individual ownership of property is a key element in:

capitalism

An S corporation:

does not make the owners of the corporation personally liable for its debts

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economic system

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply, then both countries are exercising the principle of:

comparative advantage

The _____ represents the prices of a market basket of goods and services as measured monthly by the Department of Labor.

consumer price index

In a(n) _____, a few sellers can exert substantial control over prices.

oligopoly

The quantity of a product or service that businesses will make available at various prices is called:

supply

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

Multinational oil companies such as ExxonMobil, Royal Dutch Shell, or BP are active all the way along the supply chain from locating crude oil deposits, drilling and extracting crude, transporting it around the world, refining it into petrochemicals such as gasoline, to distributing the fuel to company-owned retail stations, where it is sold to consumers. To gain this complete control of the various resources needed to product oil and gas, the companies had to have engaged in _____ mergers.

vertical

The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a producer of health-care inventory software, is an example of a(n) _____ merger.

vertical

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

A domestic firm may decide to contract for the production of its goods by an established foreign manufacturer. Such private-label manufacturing by a foreign company is called:

contract manufacturing

When the Federal Reserve implements a _____, it tightens the money supply by selling government securities or raising interest rates.

contractionary policy

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

cooperatives

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

A market in which there are a large number of firms that differentiate their products is called:

monopolistic competition