World Trade Organization – Introduction to Business

World Trade Organization – Introduction to Business

This quiz is about World Trade Organization – Introduction to Business.


Finance refers to all activities concerned with obtaining money and using it effectively. 

True – correct

False


Businesses differ from nonprofit organizations in that a business’s focus is on 

profit – correct

goods

price

charity


All the groups that have an interest in an organization’s success and outcomes are known as the organization’s 

owners.

investors.

shareholders.

stakeholders. – correct


_____ is the study of how resources are distributed for the production of goods and services within a social system. 

Psychology

Sociology

Public Relations

Economics – correct


_____ is an economic system in which the government owns and operates basic industries. 

Utilitarianism

Collectivism

Socialism – correct

Capitalism


____ is often called the father of capitalism. 

Benjamin Franklin

George Washington

Adam Smith – correct

Karl Marx


_____ relates to the number of goods and services that consumers are willing to buy at different prices at a specific time. 

Supply

Balance of payments

Demand – correct

Deficit


_____ is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in time. 

Maximum retail price

Discount price

Competitive price

Equilibrium price – correct


_____ is the number of products that businesses are willing to sell at different prices at a specific time. 

Cost pricing

Supply – correct

Demand

Equilibrium


When different businesses promote similar products that differ in some characteristics but satisfy the same consumer need, the competitive environment is most likely to be 

monopolistic competition. – correct

pure competition.

a monopoly.

an oligopoly.


Which of the following exists when there are many small businesses selling one standardized product, such as agricultural commodities like wheat, corn, and cotton? 

monopolistic rivalry

monopoly

pure competition – correct

oligopoly


When there is only one business providing a product in a given market, there exists 

a monopoly – correct

an oligopoly

pure competition

modified competition


In which of the following market structures do individual businesses have control over their products’ price because each business supplies a large portion of the products sold in the marketplace? 

monopsony

government-granted monopoly

monopoly

oligopoly


Contractions of the economy lead to 

inflation.

an increase in income.

recession. – correct

an increase in production.


Increased unemployment can reduce consumer demand for goods and services, leading to 

inflation.

recovery.

deflation. – correct

budget surplus.


The United States has a budget deficit of over $18 trillion dollars. A budget deficit occurs when a nation 

receives excess taxes.

has not national debt.

reduces its expenditures.

spends more than it takes in from taxes. – correct


In the history of the American economy, the period following the Industrial Revolution was known for an increasing emphasis on 

services.

information.

manufacturing. – correct

agriculture.


When the assembly line was applied to more industries, America entered the 

agrarian economy.

service economy.

production economy.

marketing economy. – correct


An entrepreneur has been primarily associated with the willingness to 

take risks. – correct

be conservative.

change employers frequently.

work under authority.


An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical.

True – correct

False


The principles and standards that determine acceptable conduct in business organizations are referred to as 

business ethics. – correct

social responsibility.

business strategies.

corporate citizenship.


The term _____ refers to a business’s obligation to maximize its positive impact and minimize its negative impact on society. 

social citizenship

social strategy

social ethics

social responsibility – correct


The _____ Act criminalized securities fraud and toughened penalties for corporate fraud. 

Dodd-Frank

Foreign Corrupt Practices

Sarbanes-Oxley – correct

Sherman Antitrust


Which of the following laws reformed the financial industry and offered consumers protection against complex and/or deceptive financial products? 

the Clayton Act

the Dodd-Frank Act – correct

the Sarbanes-Oxley Act

the Glass-Steagall Legislation


_____ are payments, gifts, or special favors intended to influence the outcome of a decision. 

Grants

Stipends

Emoluments

Bribes – correct


_____ involves taking someone else’s work and presenting it as your own. 

Plagiarism – correct

Inspiration

Bribery

Conflict of interest


A set of formalized rules and standards that describes what a company expects of its employees is called a 

consumerist code.

code of ethics. – correct

social responsibility.

moral philosophy.


_____ is the act of an employee exposing an employer’s wrongdoing to outsiders. 

Plagiarism

Fraud

Gatekeeping

Whistleblowing – correct


_____ is defined as the activities that individuals, groups, and organizations undertake to protect their rights as customers. 

Protectionism

Conspicuous consumption

Consumerism – correct

Civil rights


_____ is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their various stakeholders. 

Economic status quo

Virtual sustainability

Corporate citizenship – correct

Ethical well-being


The right to _____ gives consumers the freedom to review all details about the products they wish to buy. 

choose

speak out

be informed – correct

be heard


The right to _____ assures consumers that their interests will receive full and sympathetic consideration when the government formulates policy. 

be heard – correct

safety

choose

be informed


Pollution of water and soil from activities such as oil and gas drilling is primarily related to 

sustainability issues. – correct

consumer relations.

community relations.

employee relations.


International business involves the buying, selling, and trading of goods and services across national boundaries.

True – correct

False


Importing is the sale of goods and services to foreign markets. 

True

False – correct


The General Agreement on Tariffs and Trade provided a forum for tariff negotiations and a place where international trade problems could be resolved. 

True – correct

False


The Association of Southeast Asian Nations (ASEAN) effectively united Singapore, Britain, and Japan into one market.

True

False – correct


A strategic alliance is a partnership formed to create competitive advantage on a worldwide basis.

True – correct

False


A(n) _____ exists when a country is the most efficient producer of an item. 

absolute advantage – correct

comparative advantage

absolute disadvantage

comparative disadvantage


_____ is the transferring of manufacturing or other tasks—such as data processing—to countries where labor and supplies are less expensive. 

Importing

Exporting

Insourcing

Outsourcing – correct


_____ is best described as the sale of goods and services to foreign markets. 

Offshoring

Exporting – correct

Outsourcing

Importing


A nation’s _____ can be best defined as the difference in value between its exports and imports. 

trade surplus

balance of trade – correct

balance of imports

balance of exports


The difference between the flow of money into and out of a country is called its 

exchange rate

balance of payments. – correct

balance of trade.

credit balance.


_____ can be best defined as the ratio at which one nation’s currency can be exchanged for another nation’s currency. 

Currency ratio

Exchange rate – correct

Exchange ratio

National rate


A(n) _____ is best defined as a prohibition on trade in a particular product. 

ad valorem tariff

embargo – correct

excise

quota


Which of the following were merged into one market by the North American Free Trade Agreement (NAFTA)? 

Canada and Chile

Canada and Alaska

Brazil, Mexico, and the United States

Canada, Mexico, and the United States – correct


Which of the following was established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries? 

the Exim Bank

the International Monetary Fund

the World Trade Organization

the World Bank – correct


The _____ is the closest thing the world has to an international central bank. 

World Trade Organization

Citicorp Bank

World Bank

International Monetary Fund – correct


_____ can be best defined as the sharing of the costs and operations of a business between a foreign company and a local partner. 

Licensing

A direct investment

A joint venture – correct

Exporting


Which of the following can be best defined as a corporation that operates in several countries without significant ties to any of them? 

an exporter

a monopolist corporation

a multinational corporation a licensor – correct


Homepage