Graphically, what has been achieved when price of goods demanded is equal to the quantity of goods supplied?
Supply curve optimization
Potential for surplus
Freedom of choice opportunities
Which of the following best explains the difference between a market economy and a planned economy?
In a planned economy, consumers have little choice in where they work or what they purchase or pay.
In a market economy, consumers must pay what the market demands.
Capitalism is the root of a planned economy.
Market economies are also known as mixed market economies.
Planned economies promote the use of privatization to increase market share.
When there are many small firms in a specific industry, what is likely to occur?
Market force reliability
Which of the following BEST describes what the consumer price index is used to indicate?
The average wage rate for a given region
The economic performance of key consumer product companies
The changes in the cost of consumer products over time
The percentage of consumers in the total population looking for work
The number of price increases within a given period of time
Which of the following represents the ownership of resources used in a private enterprise system?
Freedom of choice
Private property rights
What takes place when buyers purchase more of a product when the price drops, and less when the price increases?
Laws of supply
Laws of demand
Degree of competition
Free market economy
What term do economists use for the pattern of short-term expansions and contractions in the economy?
Standard of living
Consumer price index
Purchasing power parity
Which environment is NOT an important dimension of a business organization’s external environment?
The political-legal environment
The sociocultural environment
The technological environment
The corporate cultural environment
The global business environment
What is created when one company is able to supply all the goods or services needed by the marketplace?
What does a planned economy rely on a centralized government to do?
Support free enterprise in every way possible
Allocate all or most factors of production
Encourage citizens to buy shares of stock in small companies
Keep its control activities to a minimum
Direct workers to start their own small businesses
Which of the following is an informal dimension for managing social responsibility?
Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?
A margin purchase
What do new forms of solid-waste disposal such as repurposing combustible waste help prevent?
Future contamination of land
Use of phosphates
What is likely the single MOST effective step that a company can take to set ethical standards?
Offer large cash awards for whistle-blowing.
Suggest that employees take ethics training.
Post ethical rules on bulletin boards.
State that the workplace values diversity.
Demonstrate support from top management.
When working to protect the environment, what type of pollution lowers air quality?
What concept is supported by those who believe that corporations should help improve the lives of citizens?
When an activity benefits an individual but not the employer, what ethical dilemma has been created?
Lack of social responsibility
Violation of the code of conduct
Conflict of morals
Interaction with primary agents of interest
Conflict of interest
Firms that meet, and occasionally exceed, legal and ethical requirements, take what type of social responsibility stance?
When a business hires a staff to formally represent the organization before a political body, in efforts to influence that political body, the business is
using personal contacts.
starting a political action committee.
asking for favors.
What is the term given to the groups, individuals, and organizations that are directly affected by the practices of an organization?
Primary agents of interest