Ashworth College C06.V.9.1 BUSINESS ETHICS Online Exam 3 (2015)

Question 1 of 20 0.0/ 5.0 Points

China and Singapore are examples of what type of economies?

A. ones that favor free markets and globalization

B. ones that favor individual property rights

C. ones that favor government intervention

D. ones that favor competition

Question 2 of 20 5.0/ 5.0 Points

What is the definition of the economic system based primarily on government authorities making decisions? ?

A. command economy

B. market economy

C. mixed economy

D. capitalist economy

Question 3 of 20 5.0/ 5.0 Points

Many economists now advocate retaining the market system and private property while modifying their workings through government regulation. This is known as a __________.

A. pure capitalist economy

B. evolutionary economy

C. mixed economy

D. free market economy

Question 4 of 20 0.0/ 5.0 Points

What is the definition of the economic system based primarily on individuals making decisions?

A. command economy

B. market economy

C. mixed economy

D. capitalist economy

Question 5 of 20 5.0/ 5.0 Points

Which country’s laws regarding property and ownership rights have been influenced by John Locke’s views?

A. United States

B. Japan

C. Thailand

D. Mexico

Question 6 of 20 5.0/ 5.0 Points

So-called primitive societies used economic systems based on __________.

A. small business organization

B. tradition-based societies

C. barter systems

D. none of the above

Question 7 of 20 5.0/ 5.0 Points

Modifying Locke’s views on free markets, Adam Smith’s arguments rest on __________ arguments that unregulated markets and private property will produce greater benefits than any other system.

A. Kantian

B. Utilitarian

C. Communist

D. None of the above

Question 8 of 20 5.0/ 5.0 Points

What is the definition of “absolute advantage?”

A. Production costs of making a commodity are lower for one country than another.

B. A company has a trade secret that gives it an edge in the markets.

C. A country produces many different goods, rather than specializing.

D. Opportunity costs of making a commodity are lower for one country than another.

Question 9 of 20 5.0/ 5.0 Points

According to Smith, when private individuals are left free to seek their own interests in free markets, they will inevitably be led to further the public welfare by __________.

A. giving donations

B. spending more freely

C. the “invisible hand”

D. a “guiding light”

Question 10 of 20 5.0/ 5.0 Points

Under TRIPS, when do patents for new products expire?

A. after five years

B. after the company owning the patent reaches 25 years in business

C. after 20 years

D. after 50 years

Question 11 of 20 5.0/ 5.0 Points

Which of the following is true of decisions made in a system primarily based on markets?

A. Private companies make the main decisions about what they will produce and who will get it.

B. Land and factories are owned and managed by private individuals.

C. People are motivated to work primarily by the desire to get paid for voluntarily supplying the things others are willing to pay for.

D. All of the above

Question 12 of 20 0.0/ 5.0 Points

What is a key cause of alienation, according to Marx?

A. Capitalist managers care nothing for their workers.

B. In a capitalist society, there are only a few rich people and many poor.

C. Capitalist societies see everything in terms of their market prices.

D. It is impossible for workers to not be alienated when they are essentially slaves to the system.

Question 13 of 20 5.0/ 5.0 Points

What did Marx call the combined effects of economic downturns, rising unemployment, and declining relative compensation?

A. the misery of workers

B. the immiseration of workers

C. the oppression of workers

D. the alienation of workers

Question 14 of 20 5.0/ 5.0 Points

What is the definition of “comparative advantage”? ?

A. Production costs of making a commodity are lower for one country than another.

B. A company has a trade secret that gives it an edge in the markets.

C. A country produces many different goods, rather than specializing.

D. Opportunity costs of making a commodity are lower for one country than another.

Question 15 of 20 5.0/ 5.0 Points

According to Locke, the power of government should be __________.

A. expanded to meet the needs of all citizens

B. expanded to meet the needs of corporations

C. limited, extending only far enough to protect basic rights of all citizens

D. limited, extending only far enough to protect the basic rights of corporations

Question 16 of 20 5.0/ 5.0 Points

Who was the prominent philosopher who developed the concept of the “natural right” to liberty and private property?

A. Adam Smith

B. David Ricardo

C. John Locke

D. Karl Marx

Question 17 of 20 5.0/ 5.0 Points

Smith’s utilitarian argument is most commonly criticized for making which of the following so-called “unrealistic” arguments? ?

A. Smith assumes that no one seller can control the price of a good.

B. Smith assumes that the manufacturer will pay for all the resources used to produce a product.

C. Smith assumes that humans are motivated only by a natural, self-interested desire for profit.

D. All the above

Question 18 of 20 5.0/ 5.0 Points

Countries such as Sweden, Norway, France, Ireland, and Switzerland use which type of economy?

A. free market economy with no government regulation

B. completely government-regulated economy

C. free market economy with some government regulation

D. mixed economy with lots of government regulation

Question 19 of 20 5.0/ 5.0 Points

In a mixed economy, __________. ?

A. monopolies are regulated, nationalized, or outlawed

B. oligopolies are the norm

C. unions are typically illegal

D. the government does not interfere much

Question 20 of 20 0.0/ 5.0 Points

What is the most important concept in international trade theory?

A. free trade

B. absolute advantage

C. comparative advantage

D. means of production