Deck 2: Ethics and Capitalism

Question 1

A capitalist system requires a strong system of ethical behaviour,as without it:

A)monopolies control the market
B)the government must intervene and regulate markets
C)hoarding occurs
D)profits fail to exist
E)competitive rivalry is limited

Answer 1

B

Question 2

Which of the following are advantages of competition?

A)Competition widens the choice of goods and services provided to consumers.
B)Competition lowers costs.
C)Competition holds profits to a minimum.
D)Competition reduces waste and inefficiency.
E)All of the above are advantages of competition.

Answer 2

E

Question 3

Driving to university on Monday morning,Mary noticed that all the gasoline retail stations she passed were selling gasoline at exactly the same price,right down to the
Decimal point.There are very few sellers of gasoline in her city and they set the price at comparable levels.This is an example of:

A)price-fixing
B)profit
C)monopoly
D)oligopoly
E)competition

Answer 3

D

Question 4

The taxation system in Canada is considered progressive.This means that those who earn higher income are taxed at a higher rate than are those with lower income.This approach reflects a movement towards as a priority in Canada.

A)oligopoly
B)equality of results
C)equality of opportunity
D)individualism
E)regression

Question 5

"It's a level playing field," said the executive to the new hires."No matter where you went to school,you will succeed here based on what you do starting today.It is all up to you." This sentiment expresses the assumption of capitalism.

A)right to personal property
B)individualism
C)intellectual property
D)equality of opportunity
E)profit maximization

Question 6

Profits:

A)spur people into action
B)act as a signal to other entrants
C)can be retained in a business as a source of funds
D)are closely associated with competition
E)All of these choice are true of profits.

Question 7

Which of the following is true of the capitalist system?

A)The market system coordinates economic activity.
B)It is less costly than a government-operated system.
C)It is less cumbersome then a government-operated system.
D)It is more responsive to society's needs.
E)All of the above are true of a capitalist system.

Question 8

Which of the following statements accurately reflects one view of the work ethic of the Millennials?

A)The Net Generation of workers is spoiled and lazy.
B)They are difficult to manage.
C)They have a tendency to plagiarize.
D)The Millennials spend too much time social networking.
E)All of the statements accurately reflect one view of today's Millennials' workforce.

Question 9

Tammy is a very dedicated employee.She is considered to have a strong work ethic. Which of the following statements regarding Tammy would NOT be correct if her behaviour is consistent with a work ethic?

A)Unemployment,to Tammy,would be a temporary misfortune.
B)Tammy sees that work is the purpose of one's life.
C)Tammy has a consumption ethic as well.
D)Tammy sees work as socially valuable.
E)All of the statements are consistent with the body of moral principles considered as work ethic.

Question 10

Frank,the owner of a manufacturing company,is explaining to the employees that the relocation of the factory to a small,rural community will be beneficial to the company.He believes that each employee can decide for him or herself whether to relocate,as it was his own right to choose to relocate his business.Frank is asserting the principle of:

A)Profit maximization
B)Individualism
C)Right to personal property
D)Intellectual property
E)Equality of opportunity

Question 11

Denise,the owner of an Internet company,is relocating the business to Toronto.Her employees all believe that she should have considered their needs in this decision as they are part of the team that has made the business successful and that customers in the community will be hurt by this move.The employees are applying the principle of
In asking her to consider their request.

A)consumer sovereignty
B)communitarianism
C)individualism
D)collectivism
E)team building

Question 12

Marco is delighted to finally have purchased his own car.He washes it weekly and always ensures that it is well maintained.His father is shocked at how well Marco is
Looking after the car; whenever he used to borrow his father's car,Marco would neglect
Its care.Marco's care for his own car exemplifies that the right to private property,within a capitalist system,results in all of the following,except:

A)a burden of responsibility over one's destiny
B)greater control over one's own destiny
C)a sense of security
D)respect for the property of others
E)pride taken in ownership results in better care being taken of one's own property

Question 13

Which of the following statements regarding competition,as a fundamental element of capitalism,is not true?

A)Capitalism guarantees a profit is made.
B)Competition is responsible for the orderly operation of the market.
C)Competition ensures that goods and services are provided at the lowest price.
D)The fittest firms tend to survive.
E)Competition holds profits to a minimum.

Question 14

JKM Corporation has decided to relocate its factory to a remote,rural location.The current employees are dismayed and are asking their employee to reconsider.JKM states that they can and will relocate their business wherever they choose.JKM Corporation is asserting which fundamental element of capitalism?

A)Profit maximization
B)Competition
C)Individualism and Economic freedom
D)Equality of opportunity
E)Right to personal property

Question 15

Much of the theory of the classical capitalist system is based on the philosophical underpinnings of:

A)Marxist theory.
B)the European market model.
C)the Communist Manifesto.
D)the American system.
E)the Wealth of Nations.

Question 16

There are several initiatives that business can undertake to foster gender equality,except:

A)Develop policies relating to employment maternity and paternity leave
B)Increase access to education and training
C)Eliminate job sharing
D)Insure that hiring and recruitment practices are not discriminatory
E)Provide affordable child care

Question 17

The assumption that consumers have power over producers through the decisions they make in purchasing goods and services is known as:

A)work ethic
B)equality of opportunity
C)consumer sovereignty
D)consumption ethic
E)economic freedom

Question 18

Consumer sovereignty is the assumption that:

A)consumers are guaranteed to experience equality of opportunity in the product market.
B)economic freedom exists for consumers in an oligopolistic market.
C)the work ethic of individuals is extremely diligent in all instances.
D)the producer is servant to the consumer.
E)the consumer is servant to the producer.

Question 19

The municipal government has determined that it wants to expand a popular walking trail system that runs through the city.This city issues a notice to the effected landowners stating that it is claiming this land and that the landowners will receive an assessment of the value of their land and payment.Can the government do this?

A)Yes,the government ultimately owns all property in Canada.
B)Yes,the government has eminent domain over the property and fair price is offered.
C)No,the government cannot do this as it violates the fundamental right to ownership of private property.
D)No,the government cannot do this,unless the owner voluntarily relinquishes the land.
E)It depends on the municipality.

Question 20

Francois is determined to start an Internet development company.A family friend had entered the business many years ago and has become quite wealthy.His income, however,levelled off after the first few years because excessive attracted
Others to the industry,increasing _.

A)profits; costs
B)profits; competition
C)competition; profits
D)profits; work ethic
E)work ethic; profits

Question 21

Fortunately in Canada there is an even distribution of wealth among members of society.

Question 22

Much of the theory of the classical capitalist system is based on the philosophical underpinnings of the American system,but is equally applicable to the Canadian economy.

Question 23

Canada,the United States,Great Britain,and Australia practice which of the following forms of capitalism?

A)Frontier
B)Family
C)Liberal Market
D)Conventional
E)Garrison

Question 24

The exchange student's presentation to the Canadian university class is certainly increasing the students' knowledge of other capitalist systems."The government of our country," the student begins,"has been dismantling protectionist policies that created
Trade barriers with other nations.But we still need them to help limit the criminal activity of crime families that is often confused with the entrepreneurialism spirit,which is
Becoming increasingly valued in our country." The exchange student is from

A)China; frontier
B)China; family
C)Taiwan; family
D)Taiwan; frontier
E)Japan; family

Question 25

All of the following stakeholders were blamed for the 2008 financial crisis,except:

A)Financial institutions
B)Investment dealers
C)Lobbyists
D)Government
E)Regulators

Question 26

Which of the following is true when comparing government involvement in the U.S.economy to that of Canada?

A)Government involvement in the economy has always been about the same for these two countries.
B)You cannot compare the level of involvement of the governments of these two countries as Canada has a socialist system and the U.S.has a capitalist system.
C)The U.S.government does not regulate any markets in that country; they are the best example of pure capitalism in the world.
D)Government involvement in the economy has always been greater in Canada than in the U.S.
E)Government involvement in the economy is greater in the U.S.than it has ever been in Canada.

Question 27

Which form of capitalism is relatively new and places the resolution of social needs as the primary goal?

A)Producer
B)Creative
C)Family
D)Frontier
E)Consumer

Question 28

All of the following are examples of government involvement in the Canadian economy, except:

A)national security
B)currency system
C)price determination of consumer electronics
D)taxation
E)measures

Question 29

Capitalism requires a strong ethical system,as without it,the justice system will intervene.

Question 30

Individuals and enterprises have been allowed to accumulate capital wealth,which has led to an even distribution of wealth among members of society.

Question 31

If capitalism is to be accepted as the economic system in society:

A)regulators must demand increased corporation participation.
B)government must be more laissez-faire.
C)businesspersons and management must somehow take into account the ethical implications resulting from the workings of the fundamentals.
D)government officials must enforce ethical behaviour with stronger criminal and civil penalties.
E)financial institutions have to be more heavily regulated.

Question 32

It is argued that the private system is less cumbersome and less costly to run than a centralized,government-operated system,and that it is more responsive to society's needs because it allows individuals and business corporations to be more innovative.

Question 33

Some critics are skeptical about the merits of the capitalist economic system.They point to which of the following as evidence of corruption resulting from the capitalist system?

A)Economic recessions
B)Corporate crime
C)The financial crisis of 2008-2009
D)Ethical scandals
E)All of the above are evidence of corruption inherent in the capitalist system.

Question 34

"It's my land!" exclaimed the farmer,responding to the environmentalists."If I want to cut down every single tree on it,this is my right." The farmer is claiming the
fundamental right of capitalism-the right of private property.

Question 35

Which of the following statements regarding capitalism is false?

A)Profit is a key motivator of corporate behaviour.
B)Capitalism is considered a controversial economic system.
C)Private ownership is fundamental to capitalism.
D)Profit maximization is an important goal.
E)Economic decision-making is in the hands of individuals or enterprises,which make decisions with the goal of maximizing social welfare.

Question 36

Canada's economy primarily operates in a private market system.

Question 37

The form of capitalism that emphasizes production,employment,and statist policies is:

A)producer
B)conventional
C)frontier
D)consumer
E)family

Question 38

In order for resources to be efficiently transferred from less productive to more productive uses when weak corporations fail in a capitalist system,it is necessary that:

A)Bankruptcy laws work well.
B)Bail out programs are in place.
C)Governments intervene in these markets.
D)Governments make the difficult decisions about which industries to support.
E)All of the above are true.

Question 39

A recent trip to the grocery store was disappointing for Robert.He discovered that his favourite brand of canned salmon was no longer being carried.When he asked the store manager,he was told that customers were not buying the product in sufficient quantities to allow them to continue to stock it.This is an example of ,which is a fundamental part of capitalism.

A)work ethic
B)competition
C)consumer sovereignty
D)economic freedom
E)equality of opportunity

Question 40

"Wa," or harmony,is an essential element of Japanese culture and is reflected in the importance of relationship and teamwork in business operations.Canadian businesspersons must understand that they are outsiders within this system.The Japanese operate under capitalism.

A)conventional
B)consumer
C)producer
D)frontier
E)family

Question 41

Economic freedom does not address the rights of individuals,only of business enterprises.

Question 42

In modern society,the desire to consume is a driving force which compels many
individuals to work hard to acquire material possessions.The result is a consumption ethic in this generation of workers.

Question 43

The gap between executive compensation and worker compensation has declined.

Question 44

The individualism view of capitalism assumes that individuals are inherently self-serving,but neither decent nor rational.

Question 45

All of the following are true concerning the government of Canada,except:

Question 46

According to the work ethic,unemployment is a temporary,unfortunate event.

Question 47

The more competitive a market,the lower the power of the consumer.

Question 48

Intellectual property,such as an artist's ownership of music,is becoming increasingly important in Canada.

Question 49

It is easier to achieve equity than equality.

Question 50

Gender equality means that women and men have equal means and opportunities for realizing their full human rights and responsibilities.

Question 51

Equality is inevitable with a capitalistic system.

Question 52

Capitalism assumes that competition is both natural and desirable.

Question 53

A monopoly occurs when there are few sellers in an industry and these sellers behave similarly.

Question 54

Most of the natural resources in Canada are privately owned.

Question 55

Competition ensures that if excessive profits are made,others will be attracted to the industry.

Question 56

Those who question the degree of consumer sovereignty in Canada argue that
governments influence or regulate in the "public interest," which frequently is more in the "producer interest."

Question 57

The barriers to entry existing in many industries and the need for increasing size to
achieve efficiency may have led to profits lower than normal under perfect competition.

Question 58

It is consumers' evaluation of a business that determines whether or not it will survive.

Question 59

The Protestant ethic claims,in part,that being thrift through saving is an element of God's will.

Question 60

The barriers to entry existing in many industries and the need for increasing size to
achieve efficiency may have led to profits higher than normal under perfect competition.

Question 61

The resolution of social needs is the primary goal of economic activity under creative capitalism.

Question 62

The government has a stronger role in consumer capitalist systems than in frontier capitalist systems.

Question 63

In recent years,there has been less government involvement in the Canadian economy.

Question 64

As of 2009,a majority of Canadians trusted business less than the year before.

Question 65

Frontier capitalism is practiced in the United States.

Question 66

Canada's economic system is capable of taking into consideration social and ethical concerns.

Question 67

Germany practices "stakeholder capitalism," a form of producer capitalism.

Question 68

The government's role in the Canadian economy is often described as laissez-faire.

Question 69

Government involvement in the market,for reasons other than laws relating to contractual arrangements is considered to weaken efficiency.

Question 70

State capitalism involves market manipulation.

Question 71

Define the "right to private property" and provide four rationales for this right.

Question 72

According to Bill Gates of Microsoft Corp.,creative capitalism would discover new,innovative ways to solve the problems of the poorest by combining self-interest (or
individualism)and caring for others.

Question 73

Competition legislation makes some types of trade practices illegal and attempts to encourage monopolization.

Question 74

Employees at ABC Corporation own shares in the company.This is referred to as "employee capitalism."

Question 75

Government involvement in the economy has always been greater in Canada than in the United States.

Question 76

Self-interest can be a benefit of capitalism.

Question 77

Innovation is accelerated within a producer capitalism system.

Question 78

Canada practices consumer capitalism.

Question 79

Co-determination takes place in producer capitalist systems.

Question 80

The "patched up" system,or mixed economy that exists in Canada is the best that can be expected,given human limitations and a democratic government.