Chapter 4: Economic Resources and Systems
Chapter Practice Review Quiz
1.. Which is NOT another word for ethics? D) losing employees
7. How might an employer treat an employee B) honor
fairly? C) recycling
D) integrity A) provide good training
B) offer less than average pay for the job
2. Which might indicate that a company is run C) encourage the employee to leave according to ethical standards? D) ask the employee to do another's work
A) Employees are treated fairly.
8. Which is NOT a good way for an employer to B) The cost of making products increases.
handle a decision that leads to conflict of C) The government investigates the company's
accounting practices. interest?
D) Environmental problems related to A) Consider the decision carefully and not make it
manufacturing are not addressed. in the first place.
B) Fix the problem as soon the employer realizes
3. Which is true of ethics in business? the mistake.
A) Everyone is ethical nowadays. C) Apologize to any employees involved. B) Everyone agrees to the same code of ethics. D) Ignore or cover up the problem and look out
for himself. C) Companies are not interested in ethics
9. Which is NOT an example of how you can be D) Sometimes laws are needed to uphold ethics.
4. Which is NOT necessarily characteristic of a A) promote recycling in the workplace sweatshop? B) consider ethics only when necessary A) long hours C) volunteer for a cause that interests you B) low wages D) treat others well
C) production of clothes
10. Who protects consumers from dangerous or D) unhealthy or unsafe conditions
falsely advertised goods? 5. What is one result of the Triangle Shirtwaist A) businesses
fire? B) Earth-friendly products A) overcrowded conditions C) other consumers
B) a famous tragedy D) Federal Trade Commission
11. How are consumers affected when D) new laws making sweatshops safer
companies restrict competition? 6. Which is NOT a consequence of unethical A) They have fewer choices in products and business practices? pricing.
A) losing repeat business B) They pay less.
B) having a well-trained employee C) They can determine the price. C) being fined by the government D) They can buy out the company.
12. What group of workers are NOT necessarily protected by American law?
A) workers who volunteer
D) those with disabilities
13. What is NOT true about the Americans with Disabilities Act?
A) It affects about 50 million workers.
B) It bans discrimination against those with disabilities.
C) It protects children from working. D) It protects people.
14. What kind of responsibility does a business have to its owners and creditors?
A) ethical, but not financial
B) financial, but not ethical
C) financial and ethical
D) creditors have a responsibility to a business
15. Why was the EPA formed?
A) to enforce laws in society
B) to protect the environment
C) so that big businesses would be more truthful about finances
D) to help corporations with their accounting
business practices. Answer Keys:
1. C 11. A
Feedback: Ethics is a set of moral principles Feedback: When there are only a few by which people conduct themselves. companies making a product, those
companies drive up the price. 2. A
Feedback: When companies treat all their 12. A
employees fairly, they are being ethical. Feedback: Some employees give volunteers
time off to do community projects, although 3. D
Feedback: Many unethical behaviors have led they are not required. Everyone else should to laws that make those behaviors illegal. be legally protected. Because of those laws, everyone is clear 13. C
about what is ethical. Feedback: The Americans with Disabilities
Act protects those with disabilities. Other 4. C
Feedback: Employees of a sweatshop may laws protect children from being forced to produce any kind of product, but always at work.
long hours for low wages under terrible 14. C
conditions. Feedback: An ethical business is morally as
well as financially responsible to its creditors 5. D
Feedback: After the terrible accident at the and owners too.
Triangle Shirtwaist Factory, laws were passed 15. B
so that nothing like it would happen again. Feedback: The Environmental Protection
Agency enforces rules that protect the 6. B
Feedback: Unethical business practices environment and control pollution.
include lying, selling substandard products,
and treating customers or employees unfairly.
Doing anything unethical will always affect
the company in the long run.
Feedback: Every employee needs to be
treated fairly. Otherwise, the company is likely to lose the employee.
Feedback: A conflict of interest is a conflict between an employer's interest and
professional obligation. An employer doesn't
often realize the mistake until it's already
Feedback: Social responsibility includes
ethics as well as an active effort to make the world around you a better place.
Feedback: The FTC is a government agency
that tries to protect consumers from unethical