Economics

1.

The practice of making poor ethical decisions:

a.

Is encouraged by most companies.

b.

Has been virtually eliminated in Canada.

c.

Is taught by most companies.

d.

Often begins with making smaller unethical decisions.

2.

Which of the following statements about business ethics is false?

Select one:

a.

Ethics refers to principles and standards that define acceptable behavior in business organizations.

b.

Studying it can help you recognize ethical issues and understand how others make unethical decisions.

c.

Ethics concerns the impact of a business's activities on society.

d.

Ethics relates to an individual's values and moral standards and the resulting business decisions he or she makes.

e.

What is ethical is determined by society, government, interest groups, friends, family, colleagues, and each individual's personal moral values.

3.

Which may be considered a drawback to incorporation?

a.

Some managers potentially having their own personal agendas.

b.

Everyone working in the same company.

c.

No tax breaks.

d.

Lack of financial oversight in incorporation.

5.

In a small town, the number of car wash companies has grown from two to five in the last month. Which result will likely occur?

Select one:

a.

The increase in supply will have no effect on the equilibrium price.

b.

The increase in supply will lead to a decrease in the equilibrium price.

c.

The increase in supply will lead to an increase in demand.

d.

The decrease in supply will lead to a new phase in the business cycle.

e.

The increase in supply will lead to a decrease in demand