“25
multiple-choice questions and this exam covers the material in Chapters 1
through 3.
Question
1
Reprocessing
used materials so that they can be reused is known as ________.
Answer

Rotation
rotation
recycling
ecology
Question
2
___________
requires that firms in the private sector provide procedures for anonymous
reporting of accusations of fraud.
Answer
Americans
with Disabilities Act
Sarbanes-Oxley Act
Consumer
Rights Act
Title
VII
Question
3
A
strategy that promotes environmentally friendly products and production methods
is called ________.
Answer

consumerism
recycling
ethical
awareness
green
marketing
Question
4
At
the federal level, the _________________ investigates suspicions of unethical
or illegal behavior by publicly traded firms.
Answer

SEC
EEOC
FDA
OSHA
Question
5
Individuals
who focus only on their own interests when making decisions are at the ________
stage of ethical development.
Answer

preconventional
conventional
postconventional
concentrations
Question
6
Ethical
__________ charges each employee personally to uphold the companys core values
and be willing to base their actions on them.
Answer

leadership
awareness
action
reasoning
Question
7
Despite
the recession, the ethical climate seems to be ___________.
Answer

Declining
staying
the same
improving
becoming
less confusing
Question
8
When
management considers social and economic issues in decision making, the company
is practicing ________.
Answer

business
ethics
consumerism
social
responsibility
social
welfare
Question
9
Technology,
tools, information, and physical facilities for the operation of a business are
examples of ________.
Answer

profits
wages
capital
interest
Question
10
The
human resources of a firm refer to ________.
Answer

everyone
over 18 years of age
everyone
who works for the business
full-time
employees
top
management
Question
11
By
offering a lifetime warranty on its products, Warner Electronics has set itself
apart from its competition. This difference is known as Warner Electronics
___________.
Answer

private
enterprise system
competitive
differentiation
capitalism
natural
resources
Question
12
The
factors of production in an economic system are ________.
Answer

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
Question
13
When
management adheres to a set of standards involving the right and wrong actions
arising in the work environment, management is practicing ________.
Answer

social
responsibility
business
ethics
social
welfare
creativity
Question
14
Capitalism
is founded on ________.
Answer

the
social changes that followed the Industrial Revolution
the
idea that 80 percent of the nations 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
Question
15
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 ________.
Answer

relationship
management
marketing
management
a
strategic alliance
transaction
management
Question
16
Nurturing
customer loyalty by gathering knowledge of customer needs and preferences is an
approach known as ________.
Answer

relationship
management
transaction
management
a
strategic alliance
marketing
management
Question
17
________
provides a running measure of consumer price changes.
Answer

The
Consumer Price Index (CPI)
Devaluation
Per
capita income
The
Producer Price Index (PPI)
Question
18
The
four different types of market structure in a private enterprise system are
________.
Answer

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
Question
19
According
to a supply curve, ________.
Answer

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
Question
20
The
willingness and ability of sellers to provide goods and services for sale in a
market is referred to as ________.
Answer

the
equilibrium price
demand
microeconomics
supply
Question
21
During
an economic recession, consumer spending ________ and unemployment ________.
Answer

increases;
increases
increases;
decreases
decreases;
increases
decreases;
decreases
Question
22
________
refers to the willingness and ability of buyers to purchase goods and services.
Answer

Consumer
behavior
Customer
preference
Supply
Demand
Question
23
Entrepreneurs
have the most economic freedom in which type of economy?
Answer

socialism
capitalism
communism
mixed
economy
Question
24
Monopolistic
competition has ________.
Answer

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
Question
25
The
three major types of economic systems are ________.
Answer

capitalism,
oligopoly, and planned economies
capitalism,
pure competition, and planned economies
capitalism,
monopoly, and mixed economies
capitalism,
planned economies, and mixed economies
25
multiple choice questions and this exam covers the material in Chapters 1
through 3.Question
1 Reprocessing
used materials so that they can be reused is known as ________.Answer
RotationrotationrecyclingecologyQuestion
2 ___________
requires that firms in the private sector provide procedures for anonymous
reporting of accusations of fraud.AnswerAmericans
with Disabilities Act Sarbanes-Oxley ActConsumer
Rights ActTitle
VIIQuestion
3 A
strategy that promotes environmentally friendly products and production methods
is called ________.Answer
consumerismrecyclingethical
awarenessgreen
marketingQuestion
4 At
the federal level, the _________________ investigates suspicions of unethical
or illegal behavior by publicly traded firms. Answer
SECEEOCFDAOSHAQuestion
5 Individuals
who focus only on their own interests when making decisions are at the ________
stage of ethical development.Answer
preconventionalconventional postconventionalconcentrationsQuestion
6 Ethical
__________ charges each employee personally to uphold the companys core values
and be willing to base their actions on them.Answer
leadershipawarenessactionreasoningQuestion
7 Despite
the recession, the ethical climate seems to be ___________.Answer
Decliningstaying
the sameimprovingbecoming
less confusingQuestion
8 When
management considers social and economic issues in decision making, the company
is practicing ________.Answer
business
ethicsconsumerismsocial
responsibilitysocial
welfareQuestion
9 Technology,
tools, information, and physical facilities for the operation of a business are
examples of ________.Answer
profitswagescapitalinterestQuestion
10 The
human resources of a firm refer to ________.Answer
everyone
over 18 years of ageeveryone
who works for the businessfull-time
employeestop
managementQuestion
11 By
offering a lifetime warranty on its products, Warner Electronics has set itself
apart from its competition. This difference is known as Warner Electronics
___________.Answer
private
enterprise systemcompetitive
differentiationcapitalismnatural
resourcesQuestion
12 The
factors of production in an economic system are ________.Answer
land,
rent, capital, and human resourcescapital,
perseverance, natural resources, and human resourcesrent,
wages, interest, and profitnatural
resources, human resources, capital, and entrepreneurshipQuestion
13 When
management adheres to a set of standards involving the right and wrong actions
arising in the work environment, management is practicing ________.Answer
social
responsibilitybusiness
ethicssocial
welfarecreativityQuestion
14 Capitalism
is founded on ________.Answer
the
social changes that followed the Industrial Revolutionthe
idea that 80 percent of the nations wealth should be owned by no more than 20
percent of the peoplethe
belief that competition among business firms best serves the needs of societythe
idea that the government must own all factors of productionQuestion
15 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 ________.Answer
relationship
managementmarketing
managementa
strategic alliancetransaction
managementQuestion
16 Nurturing
customer loyalty by gathering knowledge of customer needs and preferences is an
approach known as ________.Answer
relationship
managementtransaction
managementa
strategic alliancemarketing
managementQuestion
17 ________
provides a running measure of consumer price changes.Answer
The
Consumer Price Index (CPI)DevaluationPer
capita incomeThe
Producer Price Index (PPI)Question
18 The
four different types of market structure in a private enterprise system are
________.Answer
pure
competition, monopolistic competition, oligopoly, and monopolycommunism,
socialism, capitalism, and mixed systemssocialism,
oligopoly, monopoly, and pure competitionmixed,
socialism, communism, and pure competitionQuestion
19 According
to a supply curve, ________.Answer
as
prices rise, quantity of a product supplied fallsas
prices fall, quantity of a product supplied increasesas
prices rise, the quantity of a product that is supplied also risesas
prices rise, consumers will buy in larger quantitiesQuestion
20 The
willingness and ability of sellers to provide goods and services for sale in a
market is referred to as ________.Answer
the
equilibrium pricedemandmicroeconomicssupplyQuestion
21 During
an economic recession, consumer spending ________ and unemployment ________.Answer
increases;
increasesincreases;
decreasesdecreases;
increasesdecreases;
decreasesQuestion
22 ________
refers to the willingness and ability of buyers to purchase goods and services.Answer
Consumer
behaviorCustomer
preferenceSupplyDemandQuestion
23 Entrepreneurs
have the most economic freedom in which type of economy?Answer
socialismcapitalismcommunismmixed
economyQuestion
24 Monopolistic
competition has ________.Answer
many
buyers and sellers, and the sellers have some control over pricemany
buyers and sellers, none of whom can control pricesonly
one selleronly
a few sellersQuestion
25 The
three major types of economic systems are ________.Answer
capitalism,
oligopoly, and planned economiescapitalism,
pure competition, and planned economiescapitalism,
monopoly, and mixed economiescapitalism,
planned economies, and mixed economies”