Question 1

Select the statement below that is FALSE regarding corporate social responsibility.

A.Sustainability involves holding the supply chain accountable.

B.Corporate governance includes oversight of all production and financial operations.

C.Philanthropy by a business always benefits the shareholders of the company.

D.Producing in ways that are sustainable would be an example of corporate social responsibility.

Question 2

Which statement below about GDP and GNP is true?

A.Foreign investment can benefit GDP.

B.GNP measures the amount of goods and services produced only within a country's borders.

C.GDP is always a good measure of the economic well-being of a country.

D.GNP is used as a measure for quality of life variations between countries.

Question 3

Which of the following is NOT an event that occurred when the Chinese yuan was pegged to the U.S. dollar?

A.Chinese exports to the United States increased.

B.The effect on Chinese GDP was negative, and the effect on U.S. GDP was positive.

C.Americans demanded more yuan than the Chinese demanded dollars for exchanges.

D.The Chinese funded their exchanges by printing more money.

Question 4

Which of the statements below is true regarding ONLY fiscal policy?

A.It uses government expenditures to create demand for goods and services.

B.It increases the availability of money.

C.It causes AD to shift to the right.

D.It can be taken in an attempt to alter AD.

Question 5

Which of the following is NOT one of the reasons why it is difficult to determine whether a business practice is sustainable or unsustainable?

A.The costs and benefits of policy accrue differently to different stakeholders.

B.Unsustainable levels of production could be positive in the short term and negative in the long term.

C.Business owners have a clear incentive to only use practices that take into consideration long term consequences.

D.We cannot objectively say whether a policy is negative or positive.

Question 6

Increasing employment of women in living wage occupations is linked with which of the following?

A.Occupational segregation and gender wage gaps

B.Women working longer hours than men

C.A higher standard of living for families

D.The informal sector

QUESTION 7

Some economists support the use of trade barriers when unemployment is high because of which of the following?

A.Domestic businesses have an incentive to produce efficiently.

B.Trade barriers have a positive effect on an international level.

C.Trade barriers serve special interests.

D.Comparative advantage no longer applies.