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Test 1

Terms in this set (44)

1. Which of the following are primarily organized for profit and provide goods and services?
a.
Businesses
2. Which of the following statements is NOT true regarding businesses?
d.
Businesses are nonprofit organizations that provide services to the public.
3. In accounting terms, profits are _____.
a.
the difference between revenues and expenses
4. In the U.S. economy, _____ are considered the reward for the risk of entering a business.
c. profits
5. _____ are essential because it serves as a primary incentive for people to start companies, expand them, and provide consistently high-quality competitive goods and services.
b. profits
6. All of the following are typically part of the not-for-profit sector EXCEPT _____.
c. hotels
7. Which of the following is a public sector, not-for-profit organization?
a. Library
8. The Gyvenopolis County Library provides a wide variety of library services to its neighborhood. It also provides free online support to its members, and any fee collected from its members goes directly to charity. The library is an example of a(n) _____.
a.
not-for-profit organization
9. The factors of production in an economic system are _____.
d.
natural resources, human resources, capital, and entrepreneurship
10. Technology, tools, information, and physical facilities for the operation of a business are examples of _____.
c.
capital
11. A company that values employees as sources of ideas and innovation is utilizing its _____.
d.
human resources
12. The human resources of a firm refers to _____.
b.
everyone who works for the business
13. Tarek, a former middle manager from Alexander Manufacturing, owns and operates a Subway franchise. Tarek is demonstrating _____.
c.
entrepreneurship
14. Businesses that operate in an environment where success or failure is determined by how well they match and counter the offerings of competitors are operating under _____.
a.
the private enterprise system
15. Capitalism is founded on _____.
c.
the principles of a private enterprise system
16. In his book The Wealth of Nations, the economist Adam Smith was the first person to describe _____.
c.
capitalism
17. By offering a lifetime warranty on its products, Warner Electronics has set itself apart from its competitors. This difference is known as Warner Electronics' _____.
b.
competitive differentiation
18. When Greenlawn Inc. finds itself losing contracts because Instillite Inc. charges less money, Greenlawn responds by lowering its bids. According to Adam Smith, this reaction demonstrates _____.
a.
the invisible hand of competition
19. All of the following are basic rights within a private enterprise system EXCEPT _____.
b.
right to profits before tax deduction
20. The right to profit means that the _____.
a.
owner is legally guaranteed the right to all profits (after taxes) that are earned by a business
21. When a business employs an outside company to handle all customer correspondence and phone calls, the business is _____ its customer service department.
a.
outsourcing
22. Business ethics begins with _____.
b.
the individual employee
23. When management considers social and economic issues in decision making, the company is practicing _____.
c.
social responsibility
24. Businesses have responsibilities to _____.
b.
investors, customers, employees, and society
25. Which of the following statements best justifies why a company should act in an ethical manner?
c.
Acting ethically will help a company to prosper in the long run.
26. Businesses should _____.
b.
find the balance between doing what is right and doing what is profitable
27. _____ are responsible for conducting employee training programs that help spot potential fraud and abuse within a firm.
c.
Human Resource managers
28. Which of the following is not a minimum requirement for ethics compliance programs?
b.
Government regulation
29. Which of the following is not an example of unethical or illegal acts in the workplace?
c.
Whistle-blowing
30. Technology has _____ ethical issues.
a.
expanded the range of
31. Which of the following is not a factor in determining an individual's ethical development?
d.
Social audit
32. Which of the following fields is concerned with understanding the choices people make in using scarce resources?
c.
Economics
33. _____ is the study of the economic choices of individual consumers, families, or businesses.
b.
Microeconomics
34. The study of macroeconomics is _____.
a.
concerned with studying a country's overall economic issues
35. The management of Harvey Inc. is trying to decide the appropriate prices for various products the company sells. This is a focus of _____.
a.
microeconomics
36. In general, as price of a good or service increases, the quantity demanded:
a.
declines.
37. True Market, a research firm, was hired by a discount superstore to provide a detailed evaluation on how demand is affected by consumer preferences. True Market's analysis can be narrowed down to the study of _____.
c.
microeconomics
38. The willingness and ability of sellers to provide goods and services for sale at different prices is referred to as _____.
d.
supply
39. _____ refers to the willingness and ability of buyers to purchase goods and services at different prices.
d.
Demand
40. If the number of buyers decreases, the demand curve will shift to the _____ and the price will _____.
a.
left; fall
41. If buyers' incomes increase, the demand curve will shift to the _____ and the prices will _____.
a.
right; rise
42. If the prices of substitute goods decrease, the demand curve will shift to the _____ and the price will _____.
b.
left; fall
43. A demand curve will shift to the left if the _____.
c.
buyers' incomes decrease
44. A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.
d. demand
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