Deck 6: Section 5: Does It Matter: Society, Ethics and Business

Question 1

A market economy offers entrepreneurs certain rights such as the right to own public property.

Answer 1

True

Question 2

An economic environment is made up of 3 key groups including businesses, charitable organizations and non-profit groups.

Answer 2

False

Question 3

Examples of factors of production includes labour, knowledge workers, entrepreneurs and cash.

Answer 3

False

Question 4

When debt levels get too high, government officials can try to reduce the debt by increasing taxes only.

Question 5

The total amount of frictional and structural unemployment is equal to the natural rate of unemployment plus full employment.

Question 6

The baby boom of the 1950s ultimately brought a large number of people into the workforce, creating an increase in cyclical unemployment.

Question 7

The unemployment rate would likely include a person laid off who decided to travel around the world.

Question 8

Under socialism, with significant government ownership of certain industries, the government has the ability to control donations to non-profit groups.

Question 9

Using a microeconomic view, a business owner introducing a new product would have to consider is there enough consumer demand for this product and what is the current supply of similar products.

Question 10

Using a macroeconomic view, a restaurant increasing prices would have to consider are employment levels high and is consumer spending high.