The technological environment includes only electronics and telecommunications used to perform business activities. a. True b. False Q19. How would supply affect the aggregate output of an economy? a. Supply would decrease aggregate output. b. Increases in both would cause inflation. c. Aggregate output would grow with supply. d. Supply would have no direct effect on aggregate output. e. Aggregate output would increase the money supply. Q20. What does productivity measure? a. the total value of all goods and services produced by a national economy b. how much a system produces with the resources needed to produce it c. how much output is necessary to produce a certain level of demand d. the standard of living relative to purchasing power parity e. how much gross national product results from inputs of labor Q21. Advertising for which of the following products is most likely to have ethical ramifications? a. swimwear b. sporting equipment c. decaffeinated beverages d. books e. alcohol Q22. What must every corporation do in maintaining and reporting its financial status? a. purchase stocks on margin b. use creative accounting practices c. support increased stock prices d. aim to maximize predicted profit margins e. conform to generally accepted accounting principles Q23. What act was passed in 2002 as a response to a number of highly publicized accounting scandals? a. Sarbanes-Oxley Act b. McCain-Feingold Act c. Securities and Exchange Act d. Accounting Standards Act e. Dodd-Frank Act Q24. How do top managers best demonstrate a commitment to ethical business practices? a. by adopting written codes of ethics b. by reading employees’ e-mails c. by decentralized decision-making practices d. by cooperating with other companies e. by monitoring employees’ Web searches Q25. Which ethical norm considers whether a particular act optimizes the benefits to those who are affected by it? a. utility b. rights c. justice d. caring e. respect Q26. What is it called when two or more firms agree to collaborate on wrongful acts? a. monopolizing b. consumerism c. collusion d. brokering e. business as usual Q27. Why has climate change become a major issue for both business and government? a. The body of scientific evidence is inconclusive. b. The solutions to the problems are unanimous. c. The weather patterns are becoming increasingly uniform. d. The change in climate patterns affects the entire planet. e. The effects are confined to national boundaries. Q28. IBP, a leading meat-processing firm, has a long record of breaking environmental protection, labor, and food processing laws and then trying to cover up its offenses. What type of stance has IBP adopted to social responsibility? a. accommodative b. obstructionist c. pragmatic d. defensive e. proactive Q29. Zach’s company has appointed him to boost the business’s level of corporate social responsibility. Which of the following would MOST likely be an appropriate step for Zach toward achieving this task? a. extending employees’ hours while paying them the same b. placing less priority on the satisfaction of investors c. reducing the company’s number of charitable contributions d. offering employees better health benefits while still increasing the company’s profit e. suspending standards designed to protect the environmen
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