Ch.1-4 BUS.110 Test

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Which of the following circumstances is most likely to reduce one’s standard of living?
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An increase in the cost of some goods such as escalating gasoline prices
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When developing and maintaining good stakeholder relationships, companies find that _______.
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most often, they must balance the needs of the stakeholders with the need to make profits
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Efficiency means _______.
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producing items using the least amount of resources
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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 _______.
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using technology to stay responsive to customer needs
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What must companies do to be competitive in today’s market?
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Offer high-quality products and outstanding service at competitive prices.
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One of the results of the increase in the older population of the United States is:
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a future problem for the Social Security system.
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Increased diversity of the population of the United States has:
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led to companies with more diverse workforces.
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Among the changes resulting from increased global trade are:
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improved living standards around the world.
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Since the mid-1980s, the __________ sector has generated the most increases in employment in the United States.
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service
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The new era of business will:
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be an information-based global revolution that will impact all sectors of the economy.
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The foundation of the U.S. economic system is considered to be:
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capitalist
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Which of the following best describes a capitalistic nation?
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Most or all of the factors of production and distribution are privately owned and operated for a profit.
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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 __________.
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consumer’s desired price is too low, producers may limit the amount produced
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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 ___________.
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produced within the physical boundaries of a particular nation
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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 _________.
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unemployed persons age 16 and over, who have been looking for work during the past four weeks
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Which of the following is not a part of the business cycles that occur in economies over time?
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Structural unemployment
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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:
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Keynesian economic theory
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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.
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fiscal policy
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The sum of all the federal deficits over time is known as the:
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national debt
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Economics is the study of how a society _______________.
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employs resources to produce goods and services and distribute them among competing groups and individuals
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Buying products produced in another country is known as:
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importing
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All of the following are reasons for countries to participate in foreign trade except:
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it is just as easy to start a business overseas as it is in the U.S.
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When the value of exports from a country exceeds the value of imports into that country, there is a _______________.
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favorable balance of trade
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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) _____________.
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trade surplus
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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 ____________.
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foreign direct investment
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Americans are often accused of ethnocentricity. This means that:
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Americans feel their culture is superior to others.
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The law that specifically prohibits “questionable” or “dubious” payments to foreign officials in an effort to secure business contracts is called the:
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Foreign Corrupt Practices Act.
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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.
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sociocultural
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Using government regulations to limit the import of goods and services is called:
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trade protectionism
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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.
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NAFTA
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Which of these actions is least likely to restore the trust of the American public in the free-market system?
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Define the concept of ethics more narrowly, and make the definition closer to the definition of legality.
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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) ________.
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ethical dilemma
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According to the text, ethical behavior begins with:
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ourselves.
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Which of the following is not included as one of the questions we must ask when faced with an ethical dilemma?
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Is it acceptable if everyone else is doing it?
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Organizational ethics begins:
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at the top levels of management.
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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.
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social media
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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 _________.
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insider trading
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Government and business leaders are being held to:
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higher ethical standards than in the past.
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American businesses are:
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demanding socially responsible behavior from international suppliers, particularly in the areas of environmental standards and human rights issues.
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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?
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Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms.

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