This exam consists of 25 multiple choice questions and covers the material in Chapters 1 through 3.
Reprocessing used materials so that they can be reused is known as ________.
___________ requires that firms in the private sector provide procedures for anonymous reporting of accusations of fraud.
Americans with Disabilities Act
Consumer Rights Act
A strategy that promotes environmentally friendly products and production methods is called ________.
At the federal level, the _________________ investigates suspicions of unethical or illegal behavior by publicly traded firms.
Individuals who focus only on their own interests when making decisions are at the ________ stage of ethical development.
Ethical __________ charges each employee personally to uphold the company’s core values and be willing to base their actions on them.
Despite the recession, the ethical climate seems to be ___________.
staying the same
becoming less confusing
When management considers social and economic issues in decision making, the company is practicing ________.
Technology, tools, information, and physical facilities for the operation of a business are examples of ________.
The human resources of a firm refer to ________.
everyone over 18 years of age
everyone who works for the business
By offering a lifetime warranty on its products, Warner Electronics has set itself apart from its competition. This difference is known as Warner Electronics’ ___________.
private enterprise system
The factors of production in an economic system are ________.
land, rent, capital, and human resources
capital, perseverance, natural resources, and human resources
rent, wages, interest, and profit
natural resources, human resources, capital, and entrepreneurship
When management adheres to a set of standards involving the right and wrong actions arising in the work environment, management is practicing ________.
Capitalism is founded on ________.
the social changes that followed the Industrial Revolution
the idea that 80 percent of the nation’s wealth should be owned by no more than 20 percent of the people
the belief that competition among business firms best serves the needs of society
the idea that the government must own all factors of production
Concentrating on building and promoting products in hopes that enough customers will buy them in order to cover costs and earn acceptable profits is called ________.
a strategic alliance
Nurturing customer loyalty by gathering knowledge of customer needs and preferences is an approach known as ________.
a strategic alliance
________ provides a running measure of consumer price changes.
The Consumer Price Index (CPI)
Per capita income
The Producer Price Index (PPI)
The four different types of market structure in a private enterprise system are ________.
pure competition, monopolistic competition, oligopoly, and monopoly
communism, socialism, capitalism, and mixed systems
socialism, oligopoly, monopoly, and pure competition
mixed, socialism, communism, and pure competition
According to a supply curve, ________.
as prices rise, quantity of a product supplied falls
as prices fall, quantity of a product supplied increases
as prices rise, the quantity of a product that is supplied also rises
as prices rise, consumers will buy in larger quantities
The willingness and ability of sellers to provide goods and services for sale in a market is referred to as ________.
the equilibrium price
During an economic recession, consumer spending ________ and unemployment ________.
________ refers to the willingness and ability of buyers to purchase goods and services.
Entrepreneurs have the most economic freedom in which type of economy?
Monopolistic competition has ________.
many buyers and sellers, and the sellers have some control over price
many buyers and sellers, none of whom can control prices
only one seller
only a few sellers
The three major types of economic systems are ________.
capitalism, oligopoly, and planned economies
capitalism, pure competition, and planned economies
capitalism, monopoly, and mixed economies
capitalism, planned economies, and mixed economies