TLI 152 Midterm Exam | Questions with Verified Answers

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TLI 152 Midterm Exam | Questions with Verified Answers Adam Smith believed that one's self-directed gain would eventually create prosperity for many, and called the process the invisible hand Which ... business environment determines whether people believe they can afford to take a financial risk and start a business? economic and legal The global economic trend has been for _____ countries to move toward _____ capitalist; socialism Which person is a stakeholder for a business? Customer Profit is best described as money earned after expenses and salaries are paid Which factor of production includes the machines, buildings, and tools used in the production of goods? Capital Through the enactment of _____ policy, the U.S. government collects tax dollars and then spends some of these funds to maintain the infrastructure of the nation, such as roads and utilities Fiscal When President Obama was elected, the U.S. economy had slid into a recession. Consumer spending was low and getting worse. In an effort to stop the decline, President Obama proposed an economic stimulus package that included government spending on roads, bridges, and schools, among other things, and a tax cut that each U.S. worker would see in her or his paycheck. Apparently, President Obama was a proponent of Keynesian economic theory The way in which a country's resources are utilized to produce goods and services are distributed among those who desire to have them depends upon the economic system under which the country operates The sum of all the federal deficits over time is known as the national debt When an airline decides to buy new planes and is deciding which company to buy from, it doesn't have a lot of options to choose from. This demonstrates _____ an oligopoly The CPI (consumer price index) measures _____ and _____ inflation and deflation; includes housing and food as part of the market basket of goods and services that it measures Which of these industries is among the fastest growing today? Health Imagine the following: New sources of energy have become marketable and the industries involved have hired thousands to operate the emergence of new businesses. Due to increasing salaries in several other industries that partner with energy companies, the demand for everything from food to entertainment to travel has increased. High demand has brought about shortages in some product categories. To help manage the situation in the short term, the Fed will likely increase interest rates What is the term for the periodic rises and falls that occur in economies over time? business cycles The branch of economics that looks at the operation of a nation's economy as a whole is Macroeconomics Free-market capitalism includes four basic rights: the right to own property, the right to own a business and keep the profits; the right to freedom of competition; and the right to freedom of choice Which circumstance is most likely to reduce one's standard of living? an increase in the cost of some goods such as escalating gasoline prices The U.S. unemployment rate is a key economic indicator because most of us need jobs to maintain our standard of living. A criterion used to calculate the unemployment rate is unemployed persons age 16 and over, who have been looking for work during the past four weeks Janie started a business called Making Memories with Music. She recognized that music, socialization, and memory-challenging activities for senior citizens helped maintain their cognitive skills for longer periods of time. Though she strives for a financial gain, she uses the excess funds for enriching her programs instead of a personal profit. Making Memories in Music is best classified as a(n) _____ organization. Nonprofit _____ is a cost-effective way that many companies outsource the production of goods, such as clothing, shoes, and cell phones. The domestic firm contracts with a foreign company to produce and private-label the goods because the price is much cheaper than the domestic firm could produce in its home market contract manufacturing U.S. businesspeople are often accused of ethnocentricity. This means that they feel their culture is superior to others In global trade, the term dumping refers to the practice of selling products in a foreign country at lower prices than those charged in the producing country Even though the nation faces political instability, the island of Pantay with its wide, expansive beaches is a destination hub for cruise lines. Recently, a large theme park company showed strong interest in buying land in Pantay with the intent of building a park targeted toward families. The company wants to make a commitment to Pantay, including the hiring of several hundred local employees. The company is using global marketing called foreign direct investment Recently, two nations experienced a trade dispute over copyright issues. Country "A" accused Country "B" of violating international copyright laws. Since both were members of _____, they appealed to this organization to mediate the dispute. The WTO (World Trade Organization) When the value of exports from a country exceeds the value of imports into that country, there is a(n) favorable balance of trade If a nation exports $100 million worth of products and services and imports $68 million worth of products and services, then this nation has a(n) trade surplus Countries participate in foreign trade because no nation can produce all of the products its people want and need Using government regulations to limit the import of goods and services is called trade protectionism Brazil exports coffee into the common market known as the European Union and imports from the European Union other products the Brazil could produce but at a higher cost than what it costs the Europeans to produce. This practice follows the theory of comparative advantage Besides the shift of jobs to foreign countries, outsourcing has other drawbacks such as questionable safety and quality issues with finished products Which BRIC country has not lived up to expectations due to a slowing economy, political and social problems, and being labeled as the world's most corrupt major economy? Russia The law that specifically prohibits "questionable" or "dubious" payments to foreign officials in an effort to secure business contracts is called the: Foreign Corrupt Practices Act The value of one nation's currency relative to the currencies of other countries is referred to as the exchange rate As a strategy for reaching global markets, licensing provides the licensor with several advantages. One advantage is the cost of producing and marketing the product in a foreign market is significantly reduced During the past five years, the nation of Andolvia began a massive undertaking: teaching farmers how to successfully grow and harvest peanuts. The government subsidized the building of peanut processing plants, where private businesses are now producing peanut butter and other products of nutritional value. Although the Andolvia government has not completely banned the importation of peanuts, it has placed _____ on the number of peanut products that the nation can import each year, in order to protect Andolvia's young peanut industry. import quotas Buying products produced in another country is known as Importing Electrical appliance manufacturers need to be concerned about the kind and availability of electricity in the global marketplace. If a compatibility problem were to exist, it would be the result of a(n) _____ difference. Technological The agreement that created free-trade among the United States, Canada, and Mexico is NAFTA _____ is the world's largest exporter China The first day on the job waiting tables at a popular restaurant, Ashley noticed that when one member of the wait staff was serving a very large party, the other waiters would help with carrying food to the tables and even checking to make sure water glasses were filled. Although these actions were not part of the mandatory wait staff training, Ashley perceived that wait staff members who were not attentive in helping out were not viewed as team players by the majority of employees. Ashley was observing an example of the _____ followed at this organization integrity-based ethics Which of these actions is least likely to restore the trust of the American public in the free-market system? Defining the concept of ethics more narrowly and making the definition closer to the definition of legality To truly create an ethical culture, leaders must show a strong commitment to ethics and compliance Which dimension of corporate social responsibility includes charitable donations made to nonprofit groups of all kinds? corporate philanthropy What type of ethical code serves to define the organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability? integrity-based ethics codes When a tornado hit a town in southern Texas, the people that lived there needed the basics: food, water, and shelter. The owners of a family-owned restaurant in Houston drove several hours with a van of employees, equipment, and food to donate what they could to help the storm victims. The business term we use to describe the philanthropic action is _____, where a company donates what it does best to help make a situation better corporate social initiative The benefit of using _____ to communicate a business's CSR efforts to the public is that it allows companies to reach broad and diverse groups directly in a low-cost, efficient way social media With regard to socially responsible behavior, American businesses are demanding socially responsible behavior from international suppliers, particularly in the areas of environmental standards and human rights issues Besides environmental groups, unions, and investors, a relatively new type of watchdog organization that reports on corporate social responsibility efforts is socially conscious research organizations Your company is aware of major flaws in the design of one of its products. Your supervisor directed you to lie to a client about the defects in order to get the sale, knowing that the product would be discontinued and no longer supported by the company. Your supervisor also told you if you refused you would lose your opportunity for promotion. You would probably consider this situation to be a(n) ethical dilemma Which statement reflects the difficulty companies face when requiring international suppliers to follow environmental and human rights standards set by U.S. firms? Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms A few months ago, Grandma's Country Kitchen, a large nationwide chain of restaurants, purchased one of its competitors, A Taste of Home, for $600 million. A Taste of Home stockholders got a very fair deal for the stock they owned in the company. However, it was disclosed that somehow a member of Grandma's management team mentioned the deal to five of his relatives and several friends. They quickly brought shares of A Taste of Home and purchased the stock before the acquisition became public. These actions are insider trading Proponents of corporate social responsibility (CSR) strongly believe in benevolence; however, they still want their businesses to be profitable. In the long run, they believe CSR can lead to even more profits The most basic question one should ask when faced with an ethical dilemma is Is it legal? U.S. companies that operate abroad, particularly those who contract with foreign companies, are now _____ human rights and environmental standards followed by U.S. law separating themselves from suppliers who violate Ethics are the standards of right and wrong set for us by society, whereas legality refers to the collection of laws to protect society from fraud, theft, and violence When it comes to ethical behavior, many Americans decide what's ethical based upon the situation in which they find themselves Which question is included as one we must ask when faced with an ethical dilemma? How will it make me feel about myself? [Show More]

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