question

Materials, machinery, and workers are assembled in one place

answer

Factory system

question

The government sends more than it receives

answer

Federal deficit

question

System of exchange

answer

Barter

question

The process of distinguishing Colgate from Crest toothpaste

answer

Product differentiation

question

The average level of output per worker per hour

answer

Productivity

question

A study of how wealth is created and distributed

answer

Economics

question

An organized effort to produce and sell goods and services for a profit

answer

Business

question

A system where individuals own and operate the majority of businesses

answer

Capitalism

question

A person who takes the risk and invests in a business

answer

Entrepreneur

question

Value of all goods and services produced within a country during a one- year period

answer

Gross Domestic Product

question

The majority of small business firms are successful at the end of ten years (T/F)

answer

False

question

For a business to be organized, it must combine four types of resources: workers, natural resources, capital, and ownershiP (T/F)

answer

False

question

The equilibrium price means that the supply and demand for a product are in balance (T/F)

answer

True

question

Under communism, individual consumers determine what will be produced (T/F)

answer

False

question

Hewlett- Packard corporation and Dell Computer use product differentiation in the marketplace (T/F)

answer

True

question

If a firm's sales revenues exceed its expenses, the firm has earned a profit (T/F)

answer

True

question

Fiscal policy determines the level of interest rates (T/F)

answer

False

question

The ultimate objective of business firms should be to satisfy the needs of their customers (T/F)

answer

True

question

Adam Smith is the father of communism and advocated a classless society (T/F)

answer

False

question

A business cycle consists of four states: peak, recession, trough, and recovery

answer

True

question

Demand is a

answer

Relationship between prices and the quantities produced by buyers

question

The process of separating work into distinct tasks is called

answer

Specialization

question

What implies that there shall be no government interference in the economy

answer

Laissez- faire

question

When the level of prices in an economy rise, it's called

answer

Inflation

question

The total of all federal deficits is called

answer

National debt

question

The ability to work well with many types of people in the workplace is referred to as

answer

Cultural diversity

question

Best buy and Walmart are both examples of

answer

Marketing intermediaries

question

The study of the national economy and the global economy is referred to as

answer

Macroeconomics

question

How well off an individual or a society is, mainly in terms of want satisfaction through goods and services is referred to as

answer

Standard of living

question

A monthly index that measures changes in prices that consumers pay for goods is referred to as the

answer

Consumer price index

question

An application of moral standards to business situations

answer

Business ethics

question

Provides legal protection for employees who report corporate misconduct

answer

Sarbanes- Oxley Act of 2002

question

A guide to acceptable and ethical behavior as defined by the organization

answer

Code of ethics

question

All activities undertaken to protect the rights of consumers

answer

Consumerism

question

Informing the press or government officials about unethical practices within one's organization

answer

Whistle- blowing

question

A latin phrase meaning "let the buyer beware"

answer

Caveat Emptor

question

A racial, religious, political, national, or other group regarded as different from the larger group of which it is a part

answer

Minority

question

A plan designated to increase the number of minority employees at all levels within an organization

answer

Affirmative action program

question

Workers with little education or vocational training and a long history of unemployment

answer

Hard- core unemployed

question

The contamination of water, air, or land

answer

Pollution

question

The field of business ethics applies moral standards to business situations (T/F)

answer

True

question

Business ethics rarely involves the application of moral standards to the business activity of a normal company (T/F)

answer

False

question

The economic model of social responsibility emphasizes the effect of business decisions on society (T/F)

answer

False

question

Consumerism consists of all activities undertaken to protect the rights of consumers (T/F)

answer

True

question

Manufacturers are not required by law to inform consumers about the potential dangers of using their products (T/F)

answer

False

question

Affirmative- action plans encompass allures of human resources management, including recruiting, hiring, training, promotion, and pay (T/F)

answer

True

question

Hard- core unemployed workers are those with little education or vocational training (T/F)

answer

True

question

The EPA was created by the government to develop new improved ways to clean and improve the environment (T/F)

answer

False

question

Consumers will probably pay in large part for cleaning up our environment through increased taxes or increased product cost (T/F)

answer

True

question

A key step in developing and implementing a social responsibility program is the environmental audit (T/F)

answer

False

question

Business ethics

answer

Is the application of moral standards to business situations

question

Consumers expect a firm's products to

answer

Be safe, reliable, and reasonably priced

question

Some AIG executives were aware of the financial problems the company was facing and yet failed to reveal this information to the public. The actions taken were

answer

Unethical

question

Bribes are

answer

Unethical

question

What are three sets of factors that influence the standards of behavior in an organization

answer

Opportunity, individual factors, social factors

question

Informing the press or government officials about unethical practices within one's organization is called

answer

Whistle- blowing

question

Social responsibility

answer

Is costly but provides tremendous benefits to society and the business

question

Caveat emptor

answer

is a Latin phrase meaning "let the buyer beware"

question

Where does social responsibility of business have to begin?

answer

Management

question

Primary emphasis in the economic model of social responsibility is on

answer

Production

question

The total value of a nation's exports minus the total value of its imports over some period of time

answer

Balance of trade

question

The ability to produce a specific product more efficiently than any other nation

answer

Absolute advantage

question

Selling and shipping raw materials or products to other nations

answer

Exporting

question

The ability to produce a specific product more efficiently than any other product

answer

Comparative advantage

question

All business activities that involve exchanges across national boundaries

answer

International business

question

The total flow of money into a country minus the total flow of money out of that country over the same period of time

answer

Balance of payments

question

A tax levied on a particular foreign product entering a country

answer

Import duty

question

A complete halt to trading with a particular nation or in a particular product

answer

Embargo

question

An international barter transaction

answer

Countertrade

question

An internationally supported bank that provides loans to developing countries to help them grow

answer

Multilateral development bank (MDB)

question

The United States has enjoyed a trade surplus during the last two decades (T/F)

answer

False

question

Tariff is a tax levied on a particular foreign product entering a country (T/F)

answer

True

question

Quotas may be set on worldwide imports or on imports from a specific country (T/F)

answer

True

question

The participants in the Kennedy Round have succeeded in reducing tariffs by less than twenty percent (T/F)

answer

False

question

Licensing and exporting can be considered relatively low- risk methods of entering foreign markets (T/F)

answer

True

question

A letter of credit is issued in favor of the importer (T/F)

answer

False

question

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped (T/F)

answer

False

question

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis (T/F)

answer

True

question

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise (T/F)

answer

False

question

The international monetary fund (IMF) makes short- term loans to developing countries experiencing balance- of- payment deficits (T/F)

answer

True

question

By definition, every country has a(n) advantage in some product

answer

Comparative

question

Purchasing products or materials in other nations and bringing them into one's own country is

answer

Importing

question

General Motors and Ford products produced in the United States are found around the world. The United States is these automobiles

answer

Exporting

question

What is the exportation of large quantities of a product at a price lower than that of the same product in the home market

answer

Dumping

question

A complete halt to trading with a particular nation or in a particular product is called a(n)

answer

Embargo

question

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

answer

Infant industry

question

The World Trade Organization was created by the

answer

Uruguay Round

question

CAFTA, NAFTA, OECD, and OPEC are all examples of

answer

International economic communities

question

Foreign licensing is similar to

answer

Franchising

question

Established in 1944 and headquartered in Washington, D.C., the world bank is an example of

answer

MDB

Business 101 Chapters 1-3 – Flashcards

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