GMGT 1010 QUIZ 1 questions and solutions
3 central features of capitalism - Correct Answer ✔✔ - wage labor
mn mn mn mn mn mn mn mn mn mn mn mn
private ownership of the means of production (land, labor, capital)
mn mn mn mn mn mn mn mn mn
production for exchange and profit mn mn mn mn
what shapes attitudes about business firms? - Correct Answer ✔✔ - standard of living
mn mn mn mn mn mn mn mn mn mn mn mn mn mn
decentralized decision making mn mn
allocation of resources mn mn
self interest mn
inequities in society mn mn
business cycle mn
business wrongdoing mn
globalization
unemployment
innovation
the media mn
government
what does business require to operate? - Correct Answer ✔✔ - legitimacy
mn mn mn mn mn mn mn mn mn mn mn mn
-the belief in the rightness of an institution
mn mn mn mn mn mn mn
social license mn
-the privilege of operating in society with consent by public
mn mn mn mn mn mn mn mn mn
Key assumptions of capitalism - Correct Answer ✔✔ - Private property, individualism,
mn mn mn mn mn mn mn mn mn mn mn mn
economic freedom, equality of opportunity, competition, profit, work ethic, consumer
mn mn mn mn mn mn mn mn mn mn
sovereignty, role of government
mn mn mn mn
Private property - Correct Answer ✔✔ - Capitalism assumes that property can be owned by
mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn
an indivdual
mn mn
Individualism - Correct Answer ✔✔ - The individual and not society is the paramount mn mn mn mn mn mn mn mn mn mn mn mn mn mn
decision maker
mn mn
Economic freedom - Correct Answer ✔✔ - Few restrictions on business activity
mn mn mn mn mn mn mn mn mn mn mn mn
-freedom to voluntarily enter business mn mn mn mn
-enter contracts mn
-locate anywhere mn
How economic freedom is measured - Correct Answer ✔✔ - Property rights
mn mn mn mn mn mn mn mn mn mn mn mn
Taxation
Government intervention mn
Regulation
, Corruption
International exchange mn
Foreign investment mn
Inflation
Wage and price controls mn mn mn
Equality of opportunity - Correct Answer ✔✔ - assumption that all individuals/groups have
mn mn mn mn mn mn mn mn mn mn mn mn mn
an even chance at responding to some condition in society
mn mn mn mn mn mn mn mn mn mn
Competition - Correct Answer ✔✔ - many rival sellers seek to provide good and services to mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn
many buyers
mn mn
-adv: more variety, lower prices
mn mn mn mn
profit - Correct Answer ✔✔ - the "profit motive"
mn mn mn mn mn mn mn mn mn
work ethic - Correct Answer ✔✔ - code of values claiming that work is desirable, it is a
mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn
natural activity
mn mn
Role of government - Correct Answer ✔✔ - In a perfect capitalist market, government
mn mn mn mn mn mn mn mn mn mn mn mn mn mn
interaction would be virtually non-existent
mn mn mn mn mn
The automobile industry - Correct Answer ✔✔ - explosion of automobile manufacturing
mn mn mn mn mn mn mn mn mn mn mn mn
brought together steel, oil, rubber and paint industries. created economic interdependence
mn mn mn mn mn mn mn mn mn mn mn
effects of 3 technological breakthroughs - Correct Answer ✔✔ - urbanization
mn mn mn mn mn mn mn mn mn mn mn
-farm to city shift mn mn mn
interdependence mn
-specialization created economic interdependence mn mn mn
sociological effects mn
-shifts in the nature of work mn mn mn mn mn
mass production - Correct Answer ✔✔ - time required to assemble an engine dropped
mn mn mn mn mn mn mn mn mn mn mn mn mn mn
because of specialization and division of labour
mn mn mn mn mn mn mn
economies of scale - Correct Answer ✔✔ - as cars became faster to produce, they became mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn
cheaper to produce
mn mn mn
rise of big business - Correct Answer ✔✔ - change in competition
mn mn mn mn mn mn mn mn mn mn mn mn
threat of monopolies mn mn
emergence of the corporation mn mn mn mn
threat of monopolies mn mn
rise of antitrust legislation
mn mn mn
-makes sure industries can't have monopolies mn mn mn mn mn
-ensures competitions mn
3 central features of capitalism - Correct Answer ✔✔ - wage labor
mn mn mn mn mn mn mn mn mn mn mn mn
private ownership of the means of production (land, labor, capital)
mn mn mn mn mn mn mn mn mn
production for exchange and profit mn mn mn mn
what shapes attitudes about business firms? - Correct Answer ✔✔ - standard of living
mn mn mn mn mn mn mn mn mn mn mn mn mn mn
decentralized decision making mn mn
allocation of resources mn mn
self interest mn
inequities in society mn mn
business cycle mn
business wrongdoing mn
globalization
unemployment
innovation
the media mn
government
what does business require to operate? - Correct Answer ✔✔ - legitimacy
mn mn mn mn mn mn mn mn mn mn mn mn
-the belief in the rightness of an institution
mn mn mn mn mn mn mn
social license mn
-the privilege of operating in society with consent by public
mn mn mn mn mn mn mn mn mn
Key assumptions of capitalism - Correct Answer ✔✔ - Private property, individualism,
mn mn mn mn mn mn mn mn mn mn mn mn
economic freedom, equality of opportunity, competition, profit, work ethic, consumer
mn mn mn mn mn mn mn mn mn mn
sovereignty, role of government
mn mn mn mn
Private property - Correct Answer ✔✔ - Capitalism assumes that property can be owned by
mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn
an indivdual
mn mn
Individualism - Correct Answer ✔✔ - The individual and not society is the paramount mn mn mn mn mn mn mn mn mn mn mn mn mn mn
decision maker
mn mn
Economic freedom - Correct Answer ✔✔ - Few restrictions on business activity
mn mn mn mn mn mn mn mn mn mn mn mn
-freedom to voluntarily enter business mn mn mn mn
-enter contracts mn
-locate anywhere mn
How economic freedom is measured - Correct Answer ✔✔ - Property rights
mn mn mn mn mn mn mn mn mn mn mn mn
Taxation
Government intervention mn
Regulation
, Corruption
International exchange mn
Foreign investment mn
Inflation
Wage and price controls mn mn mn
Equality of opportunity - Correct Answer ✔✔ - assumption that all individuals/groups have
mn mn mn mn mn mn mn mn mn mn mn mn mn
an even chance at responding to some condition in society
mn mn mn mn mn mn mn mn mn mn
Competition - Correct Answer ✔✔ - many rival sellers seek to provide good and services to mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn
many buyers
mn mn
-adv: more variety, lower prices
mn mn mn mn
profit - Correct Answer ✔✔ - the "profit motive"
mn mn mn mn mn mn mn mn mn
work ethic - Correct Answer ✔✔ - code of values claiming that work is desirable, it is a
mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn
natural activity
mn mn
Role of government - Correct Answer ✔✔ - In a perfect capitalist market, government
mn mn mn mn mn mn mn mn mn mn mn mn mn mn
interaction would be virtually non-existent
mn mn mn mn mn
The automobile industry - Correct Answer ✔✔ - explosion of automobile manufacturing
mn mn mn mn mn mn mn mn mn mn mn mn
brought together steel, oil, rubber and paint industries. created economic interdependence
mn mn mn mn mn mn mn mn mn mn mn
effects of 3 technological breakthroughs - Correct Answer ✔✔ - urbanization
mn mn mn mn mn mn mn mn mn mn mn
-farm to city shift mn mn mn
interdependence mn
-specialization created economic interdependence mn mn mn
sociological effects mn
-shifts in the nature of work mn mn mn mn mn
mass production - Correct Answer ✔✔ - time required to assemble an engine dropped
mn mn mn mn mn mn mn mn mn mn mn mn mn mn
because of specialization and division of labour
mn mn mn mn mn mn mn
economies of scale - Correct Answer ✔✔ - as cars became faster to produce, they became mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn mn
cheaper to produce
mn mn mn
rise of big business - Correct Answer ✔✔ - change in competition
mn mn mn mn mn mn mn mn mn mn mn mn
threat of monopolies mn mn
emergence of the corporation mn mn mn mn
threat of monopolies mn mn
rise of antitrust legislation
mn mn mn
-makes sure industries can't have monopolies mn mn mn mn mn
-ensures competitions mn
