Week 5 Quiz – Chapters 4 and 5 Quiz
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Question 1
One reason for believing that in practice capitalism fails to live up to its own ideal of competition isSelected Answer: we have government subsidies and protective tariffs.Correct Answer: -
Question 2
An exclusive focus on short-term performanceSelected Answer: has helped to create a high-pressure environment conducive to fraud.Correct Answer: -
Question 3
An assessment of work in America isSelected Answer: many manufacturing companies have become “hollow” or “weightless”.Correct Answer: -
Question 4
A basic premise of Adam Smith’s invisible hand argument isSelected Answer: We often get what we want from others by offering something they need from us.Correct Answer: -
Question 5
For employees who are paid handsomely for their efforts, Marx said their work would ultimately prove to beSelected Answer: meaningless to them.Correct Answer: -
Question 6
Karl Marx believed thatSelected Answer: capitalist workers suffer from alienation.Correct Answer: -
Question 7
Marxism statesSelected Answer: capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands.Correct Answer: -
Question 8
Which of the following historical stages of capitalism came first?Selected Answer: mercantileCorrect Answer: -
Question 9
Many economists are concerned that the growing trade deficit makes the U.S. vulnerable toSelected Answer: economic extortion.Correct Answer: -
Question 10
Which statement accurately describes capitalism?Selected Answer: In state welfare capitalism the government plays an active role in regulating economic activities in an effort to smooth out the boom-and-bust pattern of the business cycle.Correct Answer: -
Question 11
Evidence for the idea that American manufacturing is declining isSelected Answer: the fact that government now employs more people than manufacturing.Correct Answer: -
Question 12
One of the key features of capitalism isSelected Answer: competition.Correct Answer: -
Question 13
Though many jobs are outsourced, most economists believeSelected Answer: the economy will create new jobs in the USA.Correct Answer: -
Question 14
A basic tenet of capitalism is thatSelected Answer: capitalism requires private ownership of the major means of production.Correct Answer: -
Question 15
Which statement best describes capitalism?Selected Answer: Capitalism is an economic system that operates under the profit motive.Correct Answer: -
Question 16
Momentum for the corporate organization of business really gained momentum after which war?Selected Answer: Civil WarCorrect Answer: -
Question 17
In the corporate world, the board of directors will typicallySelected Answer: rubber stamp the policies and recommendations of the management.Correct Answer: -
Question 18
In Citizens United v. Federal Elections Commission, the U.S. Supreme CourtSelected Answer: said that states should be permitted to distinguish between the rights of individuals and the rights of corporations.Correct Answer: -
Question 19
The “rules of the game” for corporate work are intended toSelected Answer: promote open and free competition.Correct Answer: -
Question 20
The idea that corporations are moral agentsSelected Answer: is accepted by many people and companies without hesitation.Correct Answer: -
Question 21
Most Americans believe a corporation’s top obligation is to itsSelected Answer: employees.Correct Answer: -
Question 22
The statement that accurately describes corporations isSelected Answer: corporate shareholders have limited liability for their debts.Correct Answer: -
Question 23
Melvin Anshen suggests that there is a relationship between business and society which he termed asSelected Answer: “social contract.”Correct Answer: -
Question 24
Milton Snoeyenbos argues thatSelected Answer: Corporate moral codes can make it more reasonable to expect employees to behave ethically.Correct Answer: -
Question 25
Adam Smith proposed that in our pursuit of economic interests we are led bySelected Answer: an invisible hand to promote general good.Correct Answer: -
Question 26
The debate over corporate moral agency hinges on which issue?Selected Answer: Corporate punishmentCorrect Answer: -
Question 27
One of the three important “limits to what the law can do” discussed by Christopher Stone isSelected Answer: designing effective regulations is difficult.Correct Answer: -
Question 28
Which of the following is one of the three arguments in favor of narrow corporate social responsibility discussed in Chapter 5?Selected Answer: let-government-do-itCorrect Answer: -
Question 29
Corporations differ from partnerships and other forms of business association in two ways. One of these is thatSelected Answer: they must be publicly registered or in some way officially acknowledged by the law.Correct Answer: -
Question 30
Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs whenSelected Answer: there is an imbalance of knowledge between buyer and seller.Correct Answer: