What is the willingness and ability of producers to offer a good for sale referred to as?
Free market economy
Law of supply
Degrees of competition
What is the general term for resources used by a business to produce a good or service referred to as?
Factors of production
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
When making decisions about production and allocation, which type of system depends on individual producers and consumers to create a combination of supply and demand?
In which type of economy do the individual producer and consumer control production through supply and demand?
What factor of production is used to generate forecasts based on specialized knowledge and economic data?
Which of the following BEST gives the meaning of the term gross domestic product?
Total quantity of goods and services produced by an economic system
Total quantity of goods that a country’s citizens can purchase with the currency used in their economic system
Conditions of the economic system in which an organization operates
Total value of all goods and services produced within a given period by a national economy through domestic factors of production
Indicators of available goods and services produced within a specific domestic market
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
In perfect competition, which of the following conditions must prevail?
All firms must adhere to cost and pricing standards.
The number of firms in the industry must be limited.
A single firm is able to influence the price of its product.
It is relatively difficult to enter the industry.
All firms in a given industry must be small.
What is needed to gain a competitive advantage over competitors?
The ability to produce goods and services and sell those at a fixed profit
The ability to produce goods and services and sell those at a high profit
The ability to produce goods or services efficiently and at a reasonable profit
The ability to leverage the internet to sell in a global marketplace
The ability to have a unique good or service that cannot be easily duplicated by competitors
The use of formal committees, training, and codes of conduct help to ensure standards of ________ within an organization.
What Act requires an organization’s chief financial officer to personally guarantee the accuracy of all financial reporting?
Generally Accepted Accounting Principles (GAAP)
Securities and Exchange Commission (SEC)
False Claims Act of 1863
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
What do ethical norms that ensure an action is consistent with what’s fair entail?
Which of the following is an informal dimension for managing social responsibility?
What category of ethics relates to matters such as hiring, firing, working conditions, privacy and respect?
Behavior toward economic agents
Behavior toward employees
Behavior toward the organization
Elimination of conflicts of interest
Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?
A margin purchase
If a firm hides responsibility for wrongdoing, what type of stance are they taking toward social responsibility?
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.
When businesses work to honor warranties, charge fair prices and stand behind the quality of their products, what stakeholder group are they supporting?