Question 1: Reprocessing used materials so that they can be reused is known as ________.

• Rotation
• rotation
• recycling
• ecology

Question 2: ___________ requires that firms in the private sector provide procedures for anonymous reporting of accusations of fraud.

• 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 ________.

• consumerism
• recycling
• ethical awareness
• green marketing

Question 4: At the federal level, the _________________ investigates suspicions of unethical or illegal behavior by publicly traded firms.

• SEC
• EEOC
• FDA
• OSHA

Question 5: Individuals who focus only on their own interests when making decisions are at the ________ stage of ethical development.

• preconventional
• conventional
• postconventional
• concentrations

Question 6: Ethical __________ charges each employee personally to uphold the company's core values and be willing to base their actions on them.

1. leadership
2. awareness
3. action
4. reasoning

Question 7: Despite the recession, the ethical climate seems to be ___________.

• Declining
• staying the same
• improving
• becoming less confusing

Question 8: When management considers social and economic issues in decision making, the company is practicing ________.

• business ethics
• consumerism
• social responsibility
• social welfare

Question 9: Technology, tools, information, and physical facilities for the operation of a business are examples of ________.

• profits
• wages
• capital
• interest

Question 10: The human resources of a firm refer to ________.

• 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' ___________.

• private enterprise system
• competitive differentiation
• capitalism
• natural resources

Question 12: The factors of production in an economic system are ________.

• 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 ________.

• social responsibility
• business ethics
• social welfare
• creativity

Question 14: Capitalism is founded on ________.

• the social changes that followed the Industrial Revolution
• the idea that 80 percent of the nation's 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 ________.

• 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 ________.

1. relationship management
2. transaction management
3. a strategic alliance
4. marketing management

Question 17: ________ provides a running measure of consumer price changes.

• 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 ________.

• 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, ________.

• 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 ________.

• the equilibrium price
• demand
• microeconomics
• supply

Question 21: During an economic recession, consumer spending ________ and unemployment ________.

• increases; increases
• increases; decreases
• decreases; increases
• decreases; decreases

Question 22: ________ refers to the willingness and ability of buyers to purchase goods and services.

• Consumer behavior
• Customer preference
• Supply
• Demand

Question 23: Entrepreneurs have the most economic freedom in which type of economy?

• socialism
• capitalism
• communism
• mixed economy

Question 24: Monopolistic competition has ________.

• 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 ________.

• capitalism, oligopoly, and planned economies
• capitalism, pure competition, and planned economies
• capitalism, monopoly, and mixed economies
• capitalism, planned economies, and mixed economies