Which of the following businesses can be best described as operating in a perfect competition?

Multiple Choice

• water utilities
• pizza restaurants
• automobile manufacturers
• dairy farms
• airline companies

The hot new video game system is having production delays, which is limiting the number of units available for resale. How will sellers most likely react in this situation?

Multiple Choice

• save their inventory
• decrease prices
• pause all advertising
• leave prices the same
• increase prices

Clara is planning to open her own business next year. Last week she purchased a building where she plans to locate the store. Which of the basic rights under capitalism does this best represent?

Multiple Choice

• the right to make profits
• the right to compete
• the right to free choice
• the right to more jobs
• the right to own property

A US manufacturer makes low-quality furniture that breaks easily. This is an example of something that is ________ but ________.

Multiple Choice

• ethical; illegal
• legal; ethical
• legal; unethical
• illegal; ethical

"Any employees caught stealing from the supply cabinet will be fined and reported to their supervisor for disciplinary action." This statement is an example of a _____ ethics code.

Multiple Choice

• complex
• internally enforced
• overly severe
• compliance-based

o encourage high ethical standards and support a strong ethical climate, a company's leadership should

Multiple Choice

• establish a code of ethics.
• host an employee retreat.
• hire only experienced workers.
• conduct regular lie detector tests.

Nneka just graduated with a degree in economics. She has accepted her first job and will be responsible for researching how the price of different forms of dairy goods impacts how much people buy when grocery shopping. Nneka is most likely working in the field of

Multiple Choice

• microeconomics.
• perfect competition economics.
• scarcity economics.
• macroeconomics.
• resource development economics.

Ali works for a large automobile company studying how changes in gas prices affect what size cars people buy. Ali's field is most likely

Multiple Choice

• macroeconomics.
• microeconomics.
• finance.
• marketing.
• economic theory.

The country has been in a recession, but the end appears to be in sight. Analysts have been predicting a rise in government and investment spending in the next quarter. This country is most likely in which of the following stages of the business cycle?

Multiple Choice

• recovery
• contraction
• peak
• expansion
• trough

________ is the increasing connectivity and interdependence of the world's economies, societies, and cultures because of advances in communication, technology, trade, international investment, currency movement, and migration.

Multiple Choice

• Internationalization
• Digital convergence
• Globalization
• Multinational technology
• The global economy