Question 1

Which of the following circumstances is most likely to reduce one\'s standard of living?

Accepted Answer

An increase in the cost of some goods such as escalating gasoline prices

Question 2

When developing and maintaining good stakeholder relationships, companies find that _______.

Accepted Answer

most often, they must balance the needs of the stakeholders with the need to make profits

Question 3

Efficiency means _______.

Accepted Answer

producing items using the least amount of resources

Question 4

At Backstreet Books, Inc., the department manager uses a hand-held scanner to determine the quantity of each best seller the bookstore has on its shelves, how many copies of each book was sold the past week and the past month, and exactly when the next shipment of these books is expected to arrive. Backstreet Books embraces the strategy of _______.

Accepted Answer

using technology to stay responsive to customer needs

Question 5

What must companies do to be competitive in today\'s market?

Accepted Answer

Offer high-quality products and outstanding service at competitive prices.

Question 6

One of the results of the increase in the older population of the United States is:

Accepted Answer

a future problem for the Social Security system.

Question 7

Increased diversity of the population of the United States has:

Accepted Answer

led to companies with more diverse workforces.

Question 8

Among the changes resulting from increased global trade are:

Accepted Answer

improved living standards around the world.

Question 9

Since the mid-1980s, the __________ sector has generated the most increases in employment in the United States.

Accepted Answer

service

Question 10

The new era of business will:

Accepted Answer

be an information-based global revolution that will impact all sectors of the economy.

Question 11

The foundation of the U.S. economic system is considered to be:

Accepted Answer

capitalist

Question 12

Which of the following best describes a capitalistic nation?

Accepted Answer

Most or all of the factors of production and distribution are privately owned and operated for a profit.

Question 13

In a free-market economic system, if consumers perceive the price for a state-of-the-art smartphone as too high for the value received, they are likely to avoid buying it. In the same light, if the __________.

Accepted Answer

consumer\'s desired price is too low, producers may limit the amount produced

Question 14

In order for the value of goods and services to be counted as part of a nation\'s gross domestic product, the goods and services must be ___________.

Accepted Answer

produced within the physical boundaries of a particular nation

Question 15

The U.S. unemployment rate is a key economic indicator because most of us need jobs to maintain our standard of living. A criterion used to calculate the unemployment rate is _________.

Accepted Answer

unemployed persons age 16 and over, who have been looking for work during the past four weeks

Question 16

Which of the following is not a part of the business cycles that occur in economies over time?

Accepted Answer

Structural unemployment

Question 17

When President Obama was elected, the U.S. economy was in trouble, and had slid into a recession. Consumer spending was low and getting worse. In an effort to stop the decline, President Obama proposed an economic stimulus package which included government spending on roads, bridges, and schools, among other things, and a tax cut that each U.S. worker would see in her or his paycheck. Apparently, President Obama was a proponent of:

Accepted Answer

Keynesian economic theory

Question 18

The American Society of Civil Engineers published a report card for America\'s interstates. It was reported that road repairs cost the American taxpayers $67 billion per year. Through the enactment of ___________, the U.S. government collects tax dollars and then spends some of these funds to maintain the infrastructure of the nation. Increasing taxes has the effect of drawing money away from the private sector.

Accepted Answer

fiscal policy

Question 19

The sum of all the federal deficits over time is known as the:

Accepted Answer

national debt

Question 20

Economics is the study of how a society _______________.

Accepted Answer

employs resources to produce goods and services and distribute them among competing groups and individuals

Question 21

Buying products produced in another country is known as:

Accepted Answer

importing

Question 22

All of the following are reasons for countries to participate in foreign trade except:

Accepted Answer

it is just as easy to start a business overseas as it is in the U.S.

Question 23

When the value of exports from a country exceeds the value of imports into that country, there is a _______________.

Accepted Answer

favorable balance of trade

Question 24

The nation of Andulasia exports $50 million worth of products and services and imports $44 million worth of products and services. Andulasia has a(n) _____________.

Accepted Answer

trade surplus

Question 25

Even though the nation faces political instability, the island of Frollik with its wide, expansive beaches is a destination hub for cruise lines. Recently, a large theme park company showed strong interest in buying land in Frollik with the intent of building a park targeted toward families. The company wants to make a commitment to Frollik, including the hiring of several hundred local employees. They\'re using a global marketing strategy called ____________.

Accepted Answer

foreign direct investment

Question 26

Americans are often accused of ethnocentricity. This means that:

Accepted Answer

Americans feel their culture is superior to others.

Question 27

The law that specifically prohibits \"questionable\" or \"dubious\" payments to foreign officials in an effort to secure business contracts is called the:

Accepted Answer

Foreign Corrupt Practices Act.

Question 28

According to Geert Hofstede, who has spent a lifetime studying differences in cultures, the Chinese have a long-term orientation, meaning they are patient savers and are willing to forgo things today, for a better future. Americans typically have a short-term orientation. They prefer more instant gratification and are not as willing to save for the future. This difference in values between the Chinese and Americans is a _____________ attribute that may represent a challenge in future global trade.

Accepted Answer

sociocultural

Question 29

Using government regulations to limit the import of goods and services is called:

Accepted Answer

trade protectionism

Question 30

There are those who hope that ______ is a stepping-stone to the creation of a Free Trade Area of the Americas. This agreement today is between the United States, Canada, and Mexico.

Accepted Answer

NAFTA

Question 31

Which of these actions is least likely to restore the trust of the American public in the free-market system?

Accepted Answer

Define the concept of ethics more narrowly, and make the definition closer to the definition of legality.

Question 32

If your supervisor directed you to enter false information into a sales order book and told you if you refused that you would lose your opportunity for promotion, you would probably consider this situation to be a(n) ________.

Accepted Answer

ethical dilemma

Question 33

According to the text, ethical behavior begins with:

Accepted Answer

ourselves.

Question 34

Which of the following is not included as one of the questions we must ask when faced with an ethical dilemma?

Accepted Answer

Is it acceptable if everyone else is doing it?

Question 35

Organizational ethics begins:

Accepted Answer

at the top levels of management.

Question 36

Progressive companies today use __________ to communicate their CSR efforts with the public. Toyota, for example, ran a contest where it donated 100 cars to nonprofit organizations, voted on by Facebookâ¢ and Twitterâ¢ participants.

Accepted Answer

social media

Question 37

A few months ago, Pedro\'s Pizza House, a large nationwide chain of restaurants, purchased one of its competitors, Italian Stallion Pizza Stations, for $800 million. Italian Stallion stockholders got a very fair deal for their stock they owned in the company. However, the purchase was not without its problems. An issue arose when it was disclosed that somehow a member of Pedro\'s management team mentioned the deal to a person he sat next to on a flight from LA to Seattle. That person called five of his relatives and several friends. They quickly bought shares of Italian Stallion and purchased the stock before the acquisition became public. These actions are called _________.

Accepted Answer

insider trading

Question 38

Government and business leaders are being held to:

Accepted Answer

higher ethical standards than in the past.

Question 39

American businesses are:

Accepted Answer

demanding socially responsible behavior from international suppliers, particularly in the areas of environmental standards and human rights issues.

Question 40

Which of the following statements reflects upon the difficulty companies face when requiring international suppliers to follow environmental and human rights standards set by U.S. firms?

Accepted Answer

Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms.

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