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


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. 



Public Relations

Economics – correct

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



Socialism – correct


____ 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. 


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

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



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


pure competition – correct


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? 


government-granted monopoly



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

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 



manufacturing. – correct


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


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. 


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. 




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 

consumerist code.

code of ethics. – correct

social responsibility.

moral philosophy.

_____ 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. 


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. 


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



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


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

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. 




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. 

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



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. 


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? 

an exporter

a monopolist corporation

a multinational corporation a licensor – correct