Economics ITB Flashcards

Economics

Microeconomics is the study of broad, economy-wide issues such as the unemployment rate, gross domestic product, and inflation.

Fiscal Policy

The federal government experiences a budget deficit when its revenue from taxes is higher than its expenditures.

Consumers will see prices fall when the quantity demanded exceeds quantity supplied.

Organizations do not need take into consideration the interactive relationship between ethics and social responsibility when building a profitable businesses.

Business ethics is the application of right and wrong, good and bad in a business setting.

The ethical standards a company establishes should be clearly communicated to outside parties such as suppliers and customers.

Whistle-blowers bring illegal and sometimes unethical company behavior to the attention of regulators and advocacy groups.

A company's code of ethics describes the preferred behaviour of the firm in its business operation. It typically flows from the corporate culture.

In the business world, social responsibility refers to Question 11 options: A) decisions individuals make about what is right and wrong. B) attempts to earn the highest possible return for the owners of a business. C) the obligation of a business organization to contribute to society. D) the obligation to obey the law

___________ are the moral principles that govern behavior, while a(n) ____________ occurs when the behavior results in a choice among alternatives, each of which has negative consequences. Question 12 options: A) Codes of conduct; fatal error B) Social responsibilities; universal ethic C) Business ethics; code of ethics D) Ethics; ethical delima

A code of ethics should include Question 13 options: A) executive exemptions, because they make decisions based on information other employees don't often have. B) executive buy-in and top mangement communication and leading by example C) vague representations of ethical standards, since everybody is different. D) a tolerant approach to enforcement.

Socially responsible employees Question 14 options: A) act in compliance with all employment laws. B) embrace diversity in the workplace by respecting and valuing each employee. C) advocate balance between work and family commitments. D) all of the above.

The Drof Motor company has created an exciting new vehicle, the Terminator. One reason that the company is so excited about this vehicle is that once the 60,000-mile warranty ends, the vehicle will begin to experience mechanical problems generating more service income for the company. The behavior is Question 15 options:A) legal, and unethical. B) legal and ethical. C) illegal and unethical. D) illegal and ethical

The purpose of a written code of ethics is to Question 16 options: A) satisfy the requirments of the Sarbanes-Oxley Act. B) eliminate the need for top management to monitor ethical behavior, thus giving these managers more time to deal with other issues. C) provide guidance to help employees make sound ethical decisions across a range of situations. D) explain how the organization will go about satisfying its social responsibilities to each major type of stakeholder.

__________ refers to actions that shape the economy by influencing interest rates and the supply of money. Question 17 options: A) Fiscal policy B) Monetary policy C) Revenue policy D) Deficit policy

In the U.S., the control of the money supply is the responsibility of the Question 18 options: A) U.S. Department of the Treasury. B) Federal Reserve. C) U.S. Department of State. D) U.S. Congress.

Demand is defined as Question 19 options: A) the number of consumers in a market. B) the quantity of products that consumers are willing to buy a different prices. C) number of products demanded stays the same. D) the amount of products produced.

The amount of goods and services produced by an economy divided by the amount of resources used to make those goods and services. measures economic Question 20 options: A) consumer price index. B) deflation. C) inflation. D) productivity

________________ means that prices on averagre are rising. Question 21 options: A) Deflation B) Inflation C) Disinflation D) Hyperinflation

Competition among businesses Question 22 options: A) is consistent with the goals of socialism. B) is a primary feature of a communist economic system. C) ensures that everone is a winner. D) Drives higher quality and lower prices in capitalism.

As access to technology rises and barriers to trade fall, individual economies around the world have become more independent than ever before.

The markets in China and India are attractive to American firms both because of the huge populations of these nations, and because both nations are experiencing rapid economic growth.

One drawback of global trade is that it increases the risk to firms who must do business in many different countries

A country has a comparative advantage in the production of a good or service when it can produce that good or service at a lower opportunity cost compared to other countries.

The balance of trade is a measure of the difference between a nation's exports and imports.

Which best define Comparative Advantage? Question 28 options: A) a static relationship between nations, wherein one has an opportunity cost advantage over another B) a static relationship between nations, wherein one can produce more of a good than another C) a non static relationship between nations, wherein one can produce more of a good than another D) a non static relationship between nations, wherein one has an opportunity cost advantage over another

A country has a comparative advantage in the production of a good if it can produce that good ___________ than other nations. Question 29 options: A) at a lower dollar cost B) at a lower opportunity cost C) using more labor and less capital D) using fewer natural resources

International trade provides businesses with access to new customers through Question 30 options: A) onshoring and protectionism. B) outsourcing, importing, exporting, licensing, franchising, and foreign direct investment. C) embargoes and licensing. D) networks of global franchising organization.

Apple, Inc. has used foreign outsourcing to construct its iPod. The main advantage to foreign outsourcing is Question 31 options: A) The positive impact on a nation's balance of payment. B) Increased risk of production. C) Improved product quality. D) Lower production.

What is the difference between outsourcing and importing? Question 32 options: A) Outsourcing is when a firm buys foreign products that have already been produced, and importing is when a firm contracts with foreign vendors to produce products. B) Importing is when a firm licenses its product to a foreign firm for production, and outsourcing is when a firm buys foreign property for the express purpose of producing the product. C) Importing is when a firm buys foreign products that have already been produced, and outsourcing is when a firm contracts with foreign vendors to produce products. D) Outsourcing is when a firm licenses its product to a foreign firm for production, and importing is when a firm buys foreign property for that express purpose of producing the product.