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
Businesses differ from nonprofit organizations in that a business’s focus is on
profit – correct
All the groups that have an interest in an organization’s success and outcomes are known as the organization’s
stakeholders. – correct
_____ is the study of how resources are distributed for the production of goods and services within a social system.
Economics – correct
_____ is an economic system in which the government owns and operates basic industries.
Socialism – correct
____ is often called the father of capitalism.
Adam Smith – correct
_____ relates to the number of goods and services that consumers are willing to buy at different prices at a specific time.
Balance of payments
Demand – correct
_____ 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
Equilibrium price – correct
_____ is the number of products that businesses are willing to sell at different prices at a specific time.
Supply – correct
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
Which of the following exists when there are many small businesses selling one standardized product, such as agricultural commodities like wheat, corn, and cotton?
pure competition – correct
When there is only one business providing a product in a given market, there exists
a monopoly – correct
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?
Contractions of the economy lead to
an increase in income.
recession. – correct
an increase in production.
Increased unemployment can reduce consumer demand for goods and services, leading to
deflation. – correct
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
manufacturing. – correct
When the assembly line was applied to more industries, America entered the
marketing economy. – correct
An entrepreneur has been primarily associated with the willingness to
take risks. – correct
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
The principles and standards that determine acceptable conduct in business organizations are referred to as
business ethics. – correct
The term _____ refers to a business’s obligation to maximize its positive impact and minimize its negative impact on society.
social responsibility – correct
The _____ Act criminalized securities fraud and toughened penalties for corporate fraud.
Foreign Corrupt Practices
Sarbanes-Oxley – correct
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.
Bribes – correct
_____ involves taking someone else’s work and presenting it as your own.
Plagiarism – correct
Conflict of interest
A set of formalized rules and standards that describes what a company expects of its employees is called a
code of ethics. – correct
_____ is the act of an employee exposing an employer’s wrongdoing to outsiders.
Whistleblowing – correct
_____ is defined as the activities that individuals, groups, and organizations undertake to protect their rights as customers.
Consumerism – correct
_____ is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their various stakeholders.
Economic status quo
Corporate citizenship – correct
The right to _____ gives consumers the freedom to review all details about the products they wish to buy.
be informed – correct
The right to _____ assures consumers that their interests will receive full and sympathetic consideration when the government formulates policy.
be heard – correct
Pollution of water and soil from activities such as oil and gas drilling is primarily related to
sustainability issues. – correct
International business involves the buying, selling, and trading of goods and services across national boundaries.
True – correct
Importing is the sale of goods and services to foreign markets.
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
The Association of Southeast Asian Nations (ASEAN) effectively united Singapore, Britain, and Japan into one market.
False – correct
A strategic alliance is a partnership formed to create competitive advantage on a worldwide basis.
True – correct
A(n) _____ exists when a country is the most efficient producer of an item.
absolute advantage – correct
_____ is the transferring of manufacturing or other tasks—such as data processing—to countries where labor and supplies are less expensive.
Outsourcing – correct
_____ is best described as the sale of goods and services to foreign markets.
Exporting – correct
A nation’s _____ can be best defined as the difference in value between its exports and imports.
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
balance of payments. – correct
balance of trade.
_____ can be best defined as the ratio at which one nation’s currency can be exchanged for another nation’s currency.
Exchange rate – correct
A(n) _____ is best defined as a prohibition on trade in a particular product.
ad valorem tariff
embargo – correct
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
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.
A direct investment
A joint venture – correct
Which of the following can be best defined as a corporation that operates in several countries without significant ties to any of them?
a monopolist corporation
a multinational corporation a licensor – correct