QUESTION Private individuals have greater influence in a free-market economy than in a command economy. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: In a free-market economy, production and distribution of goods and services are controlled by individuals, not by the government, as in command economies.
QUESTION Capitalism is an example of a central-planning economy. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Communism and socialism are central-planning, or command, economies.
QUESTION Mitchell and Sons is greatly in need of getting more customers at this time. The CEO believes that investing in CSR would do nothing to help the company gain more customers. Which of the following, if true, most weakens his position? A) Construction customers require several contacts with companies before they choose to contract […]
QUESTION People living in capitalist economies have greater incentive to work and create wealth than those living in command economies. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: With government controlling the distribution of wealth and the provision of services in a command economy, its people have less incentive to […]
QUESTION The Mitchell and Sons CEO makes the following argument against investing in CSR: “Shareholders and investors put money into the company in order to receive a return on their investment from the company’s profits. The pursuit of CSR does not have a goal of maximizing profits. Therefore, investing in CSR-related measures would violate the […]
QUESTION Monopolistic competition is marked by many sellers who sell similar products but have found ways to distinguish among them. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Differentiation among sellers and products may be slight, such as delivery time, store location, or advertising.
QUESTION Which of the following, if true, most seriously weakens the report’s claims about the ethical culture at Macmoo? A) Complaints about the ethics of those in the real estate industry often arise when agents pressure clients to accept deals that benefit the agent but damage the client. B) Corporate responsibility goals are considered achieved […]
QUESTION In an oligopoly, products are differentiated by marketing and branding, and prices are similar. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: An oligopoly usually has a few large sellers that dominate more than half the market.
QUESTION Which of the following, if true, tends to compromise the ethical standing of the CEO’s position? A) The CEO was born and raised in the community where the new plant will be located. B) The CEO plans to purchase the solar energy panels for the new plant from an alternative energy business just started […]
QUESTION The term demand dynamics describes the concept that consumers influence the marketplace through their choices of which products to buy or not buy. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: This concept is called consumer sovereignty.
