Question 1

Approximately 70 percent of U.S. production consists of goods and services purchased by individuals for personal or household consumption.

Accepted Answer

True

Question 2

Material resources include sand, water, wood, dump trucks, and computers.

Accepted Answer

True

Question 3

In a socialist economy, the distribution of goods and services - who gets what - is controlled by the government however some smaller businesses may be privately owned.

Accepted Answer

True

Question 4

If a company\'s sales are higher than its expenses, the company has earned what is known as revenue.

Accepted Answer

False

Question 5

The \"invisible hand\" was a term coined by Adam Smith.

Accepted Answer

True

Question 6

Approximately 45 percent of small businesses fail within the first seven years.

Accepted Answer

False

Question 7

When a firm is lacking financing, inventory, or time, it is dealing with issues of scarcity.

Accepted Answer

True

Question 8

Generally, the business cycle consists of four phases: the peak, recession, the trough, and recovery.

Accepted Answer

True

Question 9

A system of business where the key industries are owned and controlled by the government with private ownership of some business is known as capitalism.

Accepted Answer

False

Question 10

The ________ for a particular product is the quantity that buyers are willing to purchase at each varying price.

Accepted Answer

demand

Question 11

The health of a nation\'s economy is actually quite unrelated to the amount of interest consumers pay for homes, automobiles, and credit card purchases.

Accepted Answer

False

Question 12

Information is the resource that managers use to effectively combine human, financial, and material resources.

Accepted Answer

True

Question 13

Microeconomics is the study of the economy of an entire nation as well as the global economy.

Accepted Answer

False

Question 14

Best Buy, an electronics retailer, could be considered a marketing intermediary.

Accepted Answer

True

Question 15

People do not simply buy goods and services to just own them; they buy goods and services to satisfy a specific need.

Accepted Answer

True

Question 16

Bushels of corn, wheat, or barley that have no unique characteristics are part of a perfect competition market.

Accepted Answer

True

Question 17

The only current example of a command economy is capitalism.

Accepted Answer

False

Question 18

When an economy is at its highest point and unemployment is low, the economy is in a peak period.

Accepted Answer

True

Question 19

Manufacturers in the auto industry operate in a monopoly setting.

Accepted Answer

False

Question 20

Studies show that the incidence of innovation among small-business workers is ________ than among workers in large businesses.

Accepted Answer

b. significantly higher

Question 21

Airplanes manufactured by Boeing, cars manufactured by Nissan, and Kellogg\'s cereal are all examples of

Accepted Answer

oligopolies

Question 22

Since we assume producers are rational people, we would expect them to offer more of a product at a higher price than to offer the product at a lower price.

Accepted Answer

True

Question 23

The ability to deal effectively with individual employees as well as other managers and people outside the organization are known as conceptual skills.

Accepted Answer

False

Question 24

Large emerging economies like China, Mexico, and India illustrate which of the following business environments?

Accepted Answer

a. All of these choice are correct.

Question 25

Which of the following is an example of a risk an entrepreneur takes when starting a business?

Accepted Answer

a. Losing whatever investments are in the business.

Question 26

Travis Henry recently started a small retail business offering specialty items from China. He realizes that economic freedom in a largely capitalist society includes which of the following rights?

Accepted Answer

d. The existence of new competitors to enter his market

Question 27

John Garcia was born in the United States to parents that came from rural Oaxaca, Mexico, a community with high rates of poverty, few public services, and even fewer economic opportunities. John merged his passion for healthy food with his love of his family recipes for Mexican food and in 1998 opened Natural Mexican, the first Mexican restaurant in Portland, Oregon, that specialized in using all organic, local products. In 2005, with a favorable economic outlook and low national unemployment, John decided it was a prime time to launch two additional restaurants. Currently, all three restaurants are more profitable than their competitors. Nevertheless, increased competition from several other organic restaurants and vendors at local farmers\' markets is starting to worry him. John has narrowed his options down to two: (1) reduce his current expenses by 10 percent to increase profit margin, or (2) start looking into packaging some of his salsa and guacamole products for sale in local grocery stores.  John\'s use of family recipes in his restaurants as well as the traditional tools used to authentically create them could be considered

Accepted Answer

a. material resources.

Question 28

John Garcia was born in the United States to parents that came from rural Oaxaca, Mexico, a community with high rates of poverty, few public services, and even fewer economic opportunities. John merged his passion for healthy food with his love of his family recipes for Mexican food and in 1998 opened Natural Mexican, the first Mexican restaurant in Portland, Oregon, that specialized in using all organic, local products. In 2005, with a favorable economic outlook and low national unemployment, John decided it was a prime time to launch two additional restaurants. Currently, all three restaurants are more profitable than their competitors. Nevertheless, increased competition from several other organic restaurants and vendors at local farmers\' markets is starting to worry him. John has narrowed his options down to two: (1) reduce his current expenses by 10 percent to increase profit margin, or (2) start looking into packaging some of his salsa and guacamole products for sale in local grocery stores.    In 2005 John chose to open two additional restaurants during a(n) ___ in the U.S. economy.

Accepted Answer

c. peak period

Question 29

The resources required to organize a business include __________ resources.

Accepted Answer

c. material, human, financial, and information

Question 30

Required questions for determining the type of economic system a country will follow include

Accepted Answer

a. what to produce, how to produce, and for whom to produce.

Question 31

Which fundamental issue is not basic to capitalism?

Accepted Answer

e. The government controls the major factors of production.

Question 32

Business ethics is the application of legal and regulatory standards to business situations.

Accepted Answer

False

Question 33

The Clean Air Amendments, the Water Pollution Control Act Amendment, and the National Environmental Policy Act were all instituted in the

Accepted Answer

1970s

Question 34

The EPA is a federal agency charged with enforcing laws intended to protect the environment.

Accepted Answer

True

Question 35

All of the following are arguments for increased social responsibility except

Accepted Answer

b. social problems affect society in general, so individuals businesses should not be expected to solve these problems.

Question 36

The Interstate Commerce Act was the first federal act to regulate business practices.

Accepted Answer

True

Question 37

Regulations and laws were much stricter in the first quarter of the twentieth century than they are now.

Accepted Answer

False

Question 38

All of the following are rights of the consumer bill of rights except

Accepted Answer

d. the right to personalized service.

Question 39

Misleading advertising in print or television is illegal as well as unethical.

Accepted Answer

True

Question 40

The EEOC has the power to investigate complaints of employment discrimination and can sue firms that practice discrimination.

Accepted Answer

True

Question 41

A Latin phrase, caveat emptor, summarizes the vulnerable position that consumers were in the early 1900s.

Accepted Answer

True

Question 42

For more than fifty years, women\'s salaries have consistently been only about ________ for each dollar earned compared to men\'s.

Accepted Answer

77

Question 43

Which of the following government agencies issues guidelines on the use of labeling that advertisers have an obligation to follow?

Accepted Answer

d. Federal Trade Commission

Question 44

The ________ investigates illegal trade practices.

Accepted Answer

a. Federal Trade Commission

Question 45

Cultural norms can play a part in a person\'s ethical or unethical behavior in the workplace.

Accepted Answer

True

Question 46

Noise pollution might be addressed by workers being required to wear earplugs to guard against hearing damage.

Accepted Answer

true

Question 47

Which of the following is not considered a step in developing and implementing a social responsibility program in a company?

Accepted Answer

c. Incorporating \"buy-in\" from all employees

Question 48

The courts of the U.S. have ruled that quotas in affirmative action programs are unconstitutional.

Accepted Answer

True

Question 49

Relationships with customers are not known to cause ethical problems for businesses.

Accepted Answer

False

Question 50

Trade associations often do provide ethical guidelines for their members.

Accepted Answer

True

Question 51

A responsibility audit is a comprehensive report of what an organization is going to do in regard to social issues.

Accepted Answer

False

Question 52

The Wall Street Reform and Consumer Protection Act was passed in 2009.

Accepted Answer

False

Question 53

Which of the following federal laws was not passed between 1887 and 1914 as were the others?

Accepted Answer

a. Fair Packaging and Labeling Act

Question 54

Of the following factors, which is the least important in contributing to air pollution?

Accepted Answer

b. Pollution emitted by individual homes

Question 55

Which of the following acts involving protecting the environment in some way is the most recent?

Accepted Answer

b. American Recovery and Reinvestment Act

Question 56

Which of the following is the least likely option for funding a social responsibility program in a business?

Accepted Answer

d. Investors fund the program.

Question 57

Fairness is considered an important ethical concern in business.

Accepted Answer

True

Question 58

That the consumer was entitled to a \"bill of rights\" was instituted by President

Accepted Answer

c. John F. Kennedy.

Question 59

In a recent survey, the majority of employees surveyed assumed that their use of technology in the workplace is not monitored.

Accepted Answer

False

Question 60

The ________ Act provides sweeping legislation for reporters of corporate misconduct.

Accepted Answer

d. Sarbanes-Oxley

Question 61

The ________ enlarged the solid-waste disposal program and provided for enforcement by the EPA.

Accepted Answer

d. Resource Recovery Act

Question 62

Which of the following is false about business and social responsibility in the first quarter of the twentieth century?

Accepted Answer

b. The average work week was approximately 40 hours.

Question 63

When Maytag provides customers with a booklet describing how to use a washing machine, the company is satisfying the consumer bill of rights to

Accepted Answer

a. be informed.

Question 64

The traditional concept that businesses are responsible to their investors and that social responsibility is someone else\'s job is the core of the

Accepted Answer

e. economic model of social responsibility.

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