Name______Student # ______

GEB1011 Exam 1 – January 23, 2014

  1. The factors of production in an economic system are ______
  2. land, rent, capital, and human resources
  3. capital, perseverance, natural resources, and human resources
  4. rent, wages, interest, and profit
  5. natural resources, human resources, capital and entrepreneurship
  1. Newman’s own is a food product line that gives 100 percent of its after-tax profits to charity. This company is practicing ______.
  2. business ethics
  3. social responsibility
  4. customer satisfaction
  5. creativity
  1. Another name for the private enterprise system is :
  1. Socialism
  2. Communism
  3. Capitalism
  4. Mixed economy
  1. What is a long term partnership of a firm designed to improve overall competitiveness?
  1. Relationship building
  2. Strategic alliance
  3. Competitive advantage
  4. Competition
  1. If Lindsay leaves her current position at an investment bank to start a coffee shop with her sister, how could Lindsay best be described?
  1. Risk taker
  2. Visionary
  3. Entrepreneur
  4. All of the above
  1. Outsourcing ______involves operations overseas and offshoring _____ involves operations overseas.
  2. Sometimes; sometimes
  3. Always; always
  4. Sometimes; always
  5. Always; sometimes
  1. Non-profit organizations include all of the following except:
  2. Relief organizations
  3. Labor unions
  4. Churches
  5. Sports Authority stores
  1. A company removes a profitable product from the market because it may be dangerous. This company is demonstrating ______.
  2. Ethical behavior
  3. Green marketing
  4. Conflict of interest
  5. Social welfare
  1. Which of the following is not an example of unethical or illegal acts in the workplace?
  2. Safety violations
  3. Personal internet usage
  4. Misreporting time on the job
  5. Whistle-blowing
  1. Mike was a foreman at Hi-Way Construction and discovered his company was deliberately using faulty materials for a project. Although Mike was worried about his family’s financial security if he lost his job, he went to authorities and informed them of the potentially dangerous construction. Mike’s action is called ______.
  2. Ethical compliance
  3. Good intentions
  4. Whistle blowing
  5. Ethical allegations
  1. ______requires that firms in the private sector provide procedures for anonymous reporting of accusations of fraud and holds company executives responsible for the fraud if identified.
  2. Americans with Disabilities Act
  3. Sarbanes-Oxley Act
  4. Consumer Rights Act
  5. Title VII
  1. When Target donates 5 percent of its federally taxable income to nonprofit groups, the company is highlighting its ______.
  2. Social audit
  3. Code of conduct
  4. Business ethics
  5. Social responsibility
  1. The ______of a coffee-growing company include its employees, customers, suppliers, and the community members where the company is located.
  2. Social responsibility
  3. Corporate philanthropy
  4. Social audit
  5. Stakeholders
  1. All of the following are examples of corporate philanthropy EXCEPT ______.
  2. Supporting the local public school
  3. Sponsoring a Red Cross blood drive
  4. Paying local property taxes
  5. Giving employees release time to participate in volunteer activities
  1. Matt was diagnosed with a serious illness that requires aggressive treatment. Because his company employs 50 or more people, it must allow Matt up to 12 weeks unpaid time off in one year, as granted by the ______.
  2. Vocational Rehabilitation Act
  3. Equal Employment Opportunity Commission
  4. Occupational Safety and Health Administration
  5. Family and Medical Leave Act
  1. In general, as price of a good or service increases, the quantity demanded:
  2. Increases
  3. Decreases
  4. Stays the same
  5. Depends on the type of good or service
  6. The curve that shows the relationship between different prices and the quantity requested at each price is the ______curve.
  7. Equilibrium
  8. Supply
  9. Buying
  10. Demand
  11. In a particular country, the government owns all the transportation companies, the utilities, the energy suppliers, and major manufacturing firms. Small businesses, however, are privately owned and profits may stay in the hands of the business owners. What type of economic system does this country have?
  12. Communism
  13. Socialism
  14. Capitalism
  15. Mixed economy
  1. A country has a strong private sector, as well as publicly owned enterprises. Entrepreneurs and private-sector investors are entitled to profits, after taxes, and even state-owned enterprises are expected to at least break even. What type of economic system does this country have?
  2. Capitalism
  3. Communism
  4. Socialism
  5. Mixed economy
  1. ______is the relationship between the goods and services produced in a nation each year and workers, raw materials, and other inputs necessary to produce them.
  2. GDP
  3. Per Capita Income
  4. Prosperity
  5. Productivity
  1. ______provides a running measure of consumer price changes.
  2. The Consumer Price Index (CPI)
  3. Devaluation
  4. Per Capita Income
  5. The Producer Price Index (PPI)
  1. During an economic recession, consumer spending ______and unemployment ______.
  2. Increases; increases
  3. Increases; decreases
  4. Decreases; increases
  5. Decreases; decreases
  1. Computers that are manufactured in the United States and sold in Norway are categorized as U.S. ______.
  2. Imports
  3. Exports
  4. Countertrades
  5. Outsourcing
  1. A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese. This is an example of ______.
  2. An exchange control
  3. An import quota
  4. A protective tariff
  5. Dumping
  1. A Canadian software company that specializes in developing computer games enters into an agreement with a Japanese software company. Under this agreement, the Japanese firm has the right to manufacture and sell the Canadian firm’s games in Japan. This agreement is an example of ______.
  2. Countertrade
  3. Foreign licensing
  4. International production
  5. Direct exporting
  1. All of the following constitute a country’s infrastructure EXCEPT ______.
  2. Political climate
  3. Communication sources
  4. Energy facilities
  5. Transportation

Extra Credit: Define the difference between pre-conventional, conventional and post-conventional ethical behavior (5 points)