50078800

1. In a _______, consumers ultimately decide what should be produced.
A. macroeconomic system    C. free market system

B. socialist economy             D. command economy

 

 

2. Efficiency can best be defined as

A. the amount of output generated in a given amount of time.

B. producing items using the least amount of resources.

C. using high-tech equipment on a job.

D. producing as much as you can as fast as you can, regardless of cost.

 

3. _______ is the study of how to increase resources and create conditions that will make better use of resources.

A. Resource development    C. Macroeconomics

B. Economics                        D. Microeconomics

 

4. To help employees become more effectively productive, companies may form cross-______ teams that draw on people from different departments to work on a special project.
A. gender C. managerial
B. trained D. functional

 

5. The trend toward two-family income has led to
A. policies allowing only one family member to work for a company.
B. flexible work schedules, pregnancy benefits, and elder-care programs.
C. businesses paying lower wages and hiring fewer workers.
D. fewer opportunities in the field of human resource management.

 

6. The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce most effectively and efficiently, is known as
A. absolute advantage theory. C. efficiency balanced trade.
B. free trade. D. comparative advantage theory.

 

7. These days, the leading commercial firms are found in the _______ sector.
A. manufacturing C. service
B. agricultural D. government

 

8. In global trade, when the difference between money coming into a country from exports and money leaving a country due to imports or money flows from other factors is known as the
A. balance of payments. C. balance of trade.
B. trade offset. D. trade deficit.

 

9. Which statement best characterizes Adam Smith’s concept of the “invisible hand”?
A. Those who don’t work shouldn’t eat.
B. The quest for personal gain works for the common good.
C. When governments fail to regulate, greed conquers all.
D. Markets create money, and money creates demand.

 

10. Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those charged to consumers in Calendula’s home nation. In global trade, this is known as
A. freeloading. C. brand infringement.
B. depreciation. D. dumping.

 

11. Often, the _______ the risk, the _______ the rewards.
A. higher; higher C. higher; lower
B. lower; higher D. faster; quicker

 

12. When the government of Indonesia imposes a tax on imported electronics products to help its young electronics industry compete in the global marketplace, it’s imposing a/an _______ on foreign electronics products.
A. import quota       C. embargo
B. protective tariff    D. revenue tariff

 

13. Typically, the quantity of products people are willing to buy will _______ when prices_______.
A. increase; increase C. decrease; increase
B. stay the same; increase D. increase; stay the same

 

14. The _______, created in 1995, is assigned the task of mediating international trade disputes.
A. EU C. GATT
B. WTO D. NAFTA

 

15. In general, a person who owns and operates his or her own business can be thought of as a/an
A. entrepreneur. C. gambler.
B. manager. D. pioneer.

 

16. Consider two used-car dealers: Bob’s Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different. Which kind of competition is going on here?
A. Perfect competition     C. Monopolistic competition
B. Monopoly                    D. Oligopoly

 

17. Americans are often accused of being ethnocentric. This means that
A. Americans welcome diversity in their work force
B. Americans feel their culture is superior to other cultures.
C. U.S. firms are actively seeking international markets.
D. U.S. businesses are pursuing a policy of multiculturalism.

 

18. Uniform product codes are also known as
A. bar codes.
B. product numbers.
C. customer service standards.
D. basic product quality standards.

 

19. Which of the following about a capitalist system is correct?
A. It guarantees the success of almost any business.
B. It’s one in which the factors of production are owned by the government.
C. It relies on honesty, integrity, and high ethical standards.
D. It isn’t substantially damaged by unethical business behavior.

 

20. Among developed nations, the United States is typical in that it has a _______economy.
A. mixed C. command
B. socialist D. free market

 

21. The EU is an example of a trading bloc, or _______, that has a common external tariff and no internal tariffs, and that coordinates laws to facilitate trade between member countries.
A. strategic alliance
B. joint venture
C. common market 
D. multinational export assistance center

 

22. The five factors of production include land, _______, capital, entrepreneurship, and_______.
A. effort; education C. energy; application
B. knowledge; effort D. labor; knowledge

 

23. When the value of exports from a country exceeds the value of imports into that country, there’s
A. a trade surplus. C. an imbalance of trade.
B. no balance of payments. D. a trade deficit.

 

24. The number of businesses owned by immigrants, minority groups, and women has_______ in recent years.
A. declined C. increased
B. stabilized D. been dramatically reduced

 

25. The _______ denotes a common pattern wherein there’s a period of rapid growth in the economy when supply and demand stimulate each other, alternating with a period of decline accompanied by diminishing demand and supply.
A. macroeconomic system C. unemployment rate
B. free market system D. business cycle

 

 

50078900

1. The employees of Abs “R” Us, which includes 12 fitness parlors in and around the metro area, feel they can improve the performance of the company. They decide to pool their resources to purchase the company. This would be called a _______ buyout.
A. leveraged C. negotiated B. hostile D. management

 

2. According to your text, our main sources of ethical standards are religion and

A. philosophy. C. culture.

B. social habit. D. circumstances.

 

3. It looks a lot like a corporation and can sell stock, but it’s taxed like a partnership. This would be a/an

A. S-corporation.
B. master limited partnership.
C. uniform liability partnership.
D. limited partnership.

4. Which statement about the Sarbanes-Oxley Act is true?
A. It offers some protection to whistleblowers.
B. It helps companies recycle paper.
C. It defines whistleblowers but doesn’t protect them.
D. Its stipulations apply to both publicly traded and private companies.

5. According to the influential economist Milton Friedman, corporate social responsibility is primarily based on
A. meticulous care of the environment.
B. making money for shareholders.
C. repudiating insider trading.
D. making safe, high-quality products for consumers.

6. As derived from the Markkula Center for Applied Ethics, which of the following should
be one of eight guiding principles?
A. Compliance with the law in every situation
B. Doing good to those who deserve it
C. Respect for property
D. Preventing harm to others and to the world around us

7. The major disadvantage of a sole proprietorship is

A. having to make all the decisions.

B. having to share profits with relatives.

C. unlimited liability.

D. finding people to assist you in areas where your skills are weak.

 

8. In the world of business, a _______ is made up of a group of people or organizations who have unsatisfied wants and needs and the resources to fulfill those wants and needs.

A. market C. public

B. base D. resource

9. You learn that your friend has cheated on a final exam. If you decide to follow your

text’s five-step process for making ethical decisions in your personal life, your first

step will be

A. gathering the facts.

B. listing alternative responsibilities.

C. recognizing that an ethical issue exists.

D. reflecting on your options. 

10. Which of the following statements about the Revised Uniform Partnership Act is correct?A. It was established in 1902.
B. I has been adopted in all U.S. states.
C. It replaces the General Partnership Act of 1997.
D. It’s a default agreement for establishing such things as how partners will divide profit.


11. Respecting corporate social responsibility, Ronald McDonald Houses provides an example of corporateA. activism. C. sociability.B. environmentalism. D. philanthropy.
 

12. Because what is legal may not be ethical, we should base our moral decisions on_______ principles.
A. universal C. effectiveB. practical D. social

 

13. The residents of Littleton Township own the local hydroelectric generating plant. They pay monthly fees for facility maintenance and service and share in revenues that exceed operating costs on an annual basis. This sort of organization would best be characterized as a/anA. acquisition. C. horizontal merger.B. cooperative. D. retail co-op.

 

14. In any company, _______ must guide and inspire the implementation and enforcement of an ethics code.
A. employees C. the courtsB. managerial leadership D. federal regulatory agencies

 

15. According to the _______ approach as a basis for ethical standards, you’ll make an ethical decision based on respecting and protecting the moral rights of those who will be affected by your decision.
A. rights C. virtueB. justice D. common-good

 

16. The management of Flora-Delivery, Inc. runs 14 stores and advises and assistsowner-managers of 10 franchise operations. The stores directly run and managed byFlora-Delivery would be referred to as _______ stores.
A. accessory C. companyB. affiliated D. proprietary

 

17. Which of the following is true about an S-corporation?
A. It must offer at least two classes of stock.
B. It’s created by the government.
C. It’s taxed like any other corporation.
D. It can have no more than 1,000 shareholders.

 

18. A social _______ is a systematic evaluation of a company’s progress in implementing socially responsible programs.
A. inquiry C. programB. code D. audit

 

19. Xerox has a program called Social _______ Leave that allows employees to take leave for up to a year, at full pay and benefits, to work for a nonprofit organization.
A. Action C. ServiceB. Response D. Share

 

20. You’re in search of a type of company organization that provides limited liability,management flexibility, a choice of taxation schemes, and freedom from the hasslesof selling stock or holding annual meetings. You would almost certainly choose toorganize as a/an
A. LLC company. C. C-corporation.B. S-corporation. D. partnership.

 

21. A/An _______-based ethics code emphasizes preventing unlawful behavior through controlling behavior and punishing wrongdoers.
A. legal C. practicalB. compliance D. integrity

 

22. Without doubt, the biggest disadvantage to franchising is
A. having to share profits with the franchisor.
B. pre-established local competition.
C. toughing it out as a sole proprietor.
D. the startup cost.

 

23. The idea of providing the greatest good for the greatest number would best apply to the _______ approach to establishing ethical standards. 
A. virtue C. utilitarianB. common-good D. fairness

 

24. Some equivalent of the Golden Rule, which says we should treat others the way we wish to be treated, is found
A. only among some Christian denominations.
B. in all major religious and philosophical systems.
C. in Eastern but not, as a rule, in Western traditions.
D. in some religious traditions as well as in all philosophical systems.

 

25. Fair pay, respect for persons, and faithfully kept promises are characteristics of social responsibility to
A. employees. C. customers.B. shareholders. D. stakeholders.