QUESTION Over the past 30 years, much of industrial manufacturing has been automated. How did this affect the value of human resources and capital? What will be an ideal response? ANSWER Answer: The value of human resources decreased and the value of capital increased. Explanation: Automation of the manufacturing process replaces labor (human resources) […]
QUESTION In general, why are entrepreneurs willing to take on the risk of starting a new business? What will be an ideal response? ANSWER Answer: The possible rewards of business success outweigh the risks. Explanation: With statistics showing that many affluent people are self-employed, the potential benefits of entrepreneurship are often considered to be […]
QUESTION Explain why much less of the U.S. population is employed in agriculture than formerly. What will be an ideal response? ANSWER Answer: Advances in technology require less human labor to grow food for U.S. consumption. Explanation: The agriculture industry is largely mechanized and automated nowadays.
QUESTION The collapse of the U.S. housing market and the resulting Great Recession of 2007-2009 produced significant shifts in Americans’ living situations and attitudes about home ownership. Home builders, furniture stores, and appliance manufacturers all adjusted business strategies in response to what main factor? What will be an ideal response? ANSWER Answer: The Great […]
QUESTION Explain the hallmark of the “global economy.” What will be an ideal response? ANSWER Answer: Interdependence is the hallmark of globalization, in which firms in different countries come to rely on each other for their production and other business services. Explanation: The common economy, or globalization, is the term for the leveling of […]
QUESTION What is the primary goal of shareholders in a business? What will be an ideal response? ANSWER Answer: to make a profit on returns on their investment in shares in the company Explanation: People invest in businesses to build their wealth.
QUESTION In making the decision between hiring a greater number of temporary workers and partnering with a tutoring and testing outsourcing firm, all of the following questions would be relevant EXCEPT which one? A) Would TLS have any responsibilities to the workers it hires that exceed its responsibilities to the workers hired by the outsourcing […]
QUESTION Which of the following, if true, weakens the CEO’s case for outsourcing to Latin America? A) Latin America has rapidly growing markets in consumer products. B) Labor conditions in Latin America are volatile. C) Latin American countries have mostly friendly relations with one another. D) Companies in Latin America are quite knowledgeable about American […]
QUESTION Which of the following, if true, strengthens the case for Martinet to not outsource some of its operations to Latin America? A) Shipping costs between the United States and Latin America are low. B) Martinet’s workers just won a number of expensive concessions from the company in its latest labor contract. C) The specialists […]
QUESTION Martinet’s CEO thinks that the company has good reason to outsource some of its processes to Latin America. Which of the following, if true, strengthens the CEO’s argument? A) Many Latin American countries have strained relations with the United States. B) Shipping costs to and from Latin America are high. C) Labor in Latin […]
