Exam 1

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Exam I -REVIEW-CH 1-4Exam I -REVIEW-CH 1-4
Student: ___________________________________________________________________________ 1. If Chrysler raises the prices of its new models of pickup trucks by 4 percent and General Motors and Ford follow by raising prices by a similar amount, then this is evidence of A. a monopoly.

B. an oligopoly.
C. pure competition.
D. monopolistic competition.
E. supply and demand.

2. Because the US government regulates business to ensure competition and protect consumers, the US economic system is described as a: A. Socialist system
B. Communist system
C. Pure capitalist system
D. Modified capitalist system

3. Competition fosters efficiency because
A. the government regulates prices.
B. producers have to offer the best products at reasonable prices. C. supply depresses prices.
D. all buyers have perfect knowledge.
E. businesses can set whatever prices they want.

4. When a business fails or does not make a profit, _______ have the most to lose. A. customers
B. workers
C. managers
D. owners
E. consumers

5. Which of the following questions are addressed by all economic systems? A. What goods and services should be produced?
B. How much of each good and service should be produced?
C. Who will produce the goods?
D. How should the goods and services be distributed?
E. All of the above.

6. Communist societies
A. appear to be efficient and equitable, at least in theory. B. have a high standard of living.
C. seldom have consumer shortages.
D. have only one class of people.
E. do not spend much on defense.

7. Writing letters to companies, making public service announcements, lobbying government agencies, and boycotting irresponsible companies are activities involved with which social responsibility issue? A. Employee relations

B. Environmental issues
C. Community relations
D. Consumer relations
E. Relations with owners

8. The following behavior is an example of ethical consideration within business relationships: A. keeping company secrets.
B. avoiding obligations.
C. shirking responsibilities.
D. setting a poor example for others.
E. offering a bribe.

9. Many of the laws regulating safety in the workplace are enforced by A. the FTC.
B. the Department of Commerce.
C. NAFTA.
D. OSHA.
E. the ADA.

10. Studying business ethics will not necessarily
A. help you recognize ethical issues.
B. help you understand the importance of ethical decisions.
C. inform you concerning the impact of the work group on ethical decisions. D. describe the ethical decision-making process.
E. tell you what you ought to do.

11. Unethical behavior in business can be reduced if management does all of the following except A. establish clear policies on unethical behavior.
B. limit opportunities for unethical behavior.
C. establish formal rules and procedures.
D. punish unethical behavior firmly.
E. depend totally on employees' personal ethics.

12. Ethical violations destroy
A. nothing.
B. jobs.
C. trust.
D. profits.
E. morale.

13. To facilitate free trade among members, the European Union is working toward all of the following except A. the standardization of business regulations.
B. the standardization of import duties.
C. the elimination of customs checks.
D. the creation of opportunities to trade with countries in South America. E. the creation of a standardized currency.

14. A trade advantage with the best chance of surviving is one based on A. worker know-how.
B. technology.
C. a monopoly of a resource.
D. production efficiency.
E. lack of a resource.

15. The U.S. has a trade deficit because
A. American companies sold more goods to other countries than foreign companies sold here. B. Japan stopped exporting goods to the United States.
C. America imported more products than it exported.
D. American consumers stopped buying Japanese goods and services. E. American consumers bought far more domestic goods...
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