MGG 150 EXAM 1 QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026
Free enterprise - Answers the system of business in which individuals are free to decide what to
produce, how to produce it, and at what price to sell it.
Business profit/loss - Answers the organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
Calculate profit - Answers Sales Rev - Business Expenses
Stakeholders - Answers all the different people or groups
of people who are affected by the
policies, decisions, and activities
made by an organization.
EXAM QUESTION: Macroeconomics - Answers National economy
Adam smith - Answers Capitalism
Karl Marx - Answers Communism
Laissez fair capitalism - Answers no government involvement in the economy
Invisible hand - Answers describes how an individual's
own personal gain benefits others
and a nation's economy.
US economy - Answers considered mixed economy, an economy that exhibits elements
of both capitalism and socialism.
Communism - Answers Strict , centralized
Capitalism - Answers individuals own and operate
the majority of businesses that
provide goods and services.
Economic indicators - Answers Gross domestic product (GDP)
Inflation
Unemployment rate
US Exports/ Imports - Answers E>I= surplus E<I=deficit
, US imports more then it exports
Recession - Answers Two or more consecutive 3-month periods of decline in a country's GDP.
Monetary policy - Answers Federal Reserve decisions that determine the size of the supply of
money in the nation and the level of interest rates
Fiscal policy - Answers Government influence on the amount of savings and expenditures
accomplished by altering the tax structure and changing the levels of government spending
Factors effecting ethical behavior - Answers 1. Individual factors
Individual knowledge of an issue
Personal values
Personal goals
2. Social factors
Cultural norms
Coworkers
Significant others
Use of the Internet
3. Opportunity factors
Presence of opportunity
Ethical codes
Enforcement
EXAM QUESTION: Taking an extended lunch? - Answers Social factor
Code of ethics - Answers A written guide to acceptable and ethical behavior as defined by an
organization; it outlines policies, standards, and punishments for violations
Whistle-blowing - Answers Informing the press or government officials about unethical
practices within one's organization.
Social responsibility - Answers The recognition that business activities have an impact on
Free enterprise - Answers the system of business in which individuals are free to decide what to
produce, how to produce it, and at what price to sell it.
Business profit/loss - Answers the organized effort of individuals to produce and sell, for a
profit, the goods and services that satisfy society's needs.
Calculate profit - Answers Sales Rev - Business Expenses
Stakeholders - Answers all the different people or groups
of people who are affected by the
policies, decisions, and activities
made by an organization.
EXAM QUESTION: Macroeconomics - Answers National economy
Adam smith - Answers Capitalism
Karl Marx - Answers Communism
Laissez fair capitalism - Answers no government involvement in the economy
Invisible hand - Answers describes how an individual's
own personal gain benefits others
and a nation's economy.
US economy - Answers considered mixed economy, an economy that exhibits elements
of both capitalism and socialism.
Communism - Answers Strict , centralized
Capitalism - Answers individuals own and operate
the majority of businesses that
provide goods and services.
Economic indicators - Answers Gross domestic product (GDP)
Inflation
Unemployment rate
US Exports/ Imports - Answers E>I= surplus E<I=deficit
, US imports more then it exports
Recession - Answers Two or more consecutive 3-month periods of decline in a country's GDP.
Monetary policy - Answers Federal Reserve decisions that determine the size of the supply of
money in the nation and the level of interest rates
Fiscal policy - Answers Government influence on the amount of savings and expenditures
accomplished by altering the tax structure and changing the levels of government spending
Factors effecting ethical behavior - Answers 1. Individual factors
Individual knowledge of an issue
Personal values
Personal goals
2. Social factors
Cultural norms
Coworkers
Significant others
Use of the Internet
3. Opportunity factors
Presence of opportunity
Ethical codes
Enforcement
EXAM QUESTION: Taking an extended lunch? - Answers Social factor
Code of ethics - Answers A written guide to acceptable and ethical behavior as defined by an
organization; it outlines policies, standards, and punishments for violations
Whistle-blowing - Answers Informing the press or government officials about unethical
practices within one's organization.
Social responsibility - Answers The recognition that business activities have an impact on
