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Exam: 500618RR - Business and Society
1. Nature can have value in and of itself, apart from human beings and their interests. This statement illustratesA. natural humanism.B. radical naturism.C. the ecological principle of interconnectedness.D. the naturalistic ethic. 2. Which of the following statements about consumer safety is correct?A. In the United States, no products can go to market without regulation.B. The Consumer Product Safety Commission has the power to order recalls.C. Statistics show that safety regulations rarely succeed in increasing safety.D. Critics exaggerate the cost of safety regulations and product recalls. 3. For years, the Bayer company advertised that its aspirin tablets contained "the ingredient doctors recommend most." The ingredient that's referred to is, in fact, aspirin. This advertisement is an example ofA. exaggeration.B. ambiguity.C. psychological appeals.D. concealed facts. 4. The idea that laws may justifiably be used to restrict the freedom of others for their own good is calledA. patrimony.B. judicial discretion.C. judicial determinism.D. legal paternalism. 5. One result of the Kyoto Protocol has been the emergence of a global market for the trade ofA. carbon-emission credits.B. old-growth hardwoods.C. water rights.D. endangered species. 6. According to the legal doctrine of strict product liability,A. consumers must assume all risks whenever they buy products.B. the producer of a product is responsible for any injury the consumer suffers.C. product liability presupposes negligence by more than one party.D. a manufacturer need not be negligent to be held liable for a defective product. 7. In the __________ view, ecological responsibility to future generations is aimed at maximizing total human happiness through time.A. naturalisticB. utilitarianC. moralisticD. paternalistic 8. The United States represents about 4.6 percent of the world's population, but uses _______ of the world's refined oil.A. 30 percentB. 60 percentC. 2 percentD. 90 percent 9. Which of the following terms describes the science of the interrelationships of organisms and their environment?A. EcologyB. EcosystemC. Environmental protectionD. Pollution control 10. Which of the following statements correctly describes John Kenneth Galbraith's "dependence effect?"A. Production depends upon the wants of consumers.B. Advertising depends on consumerism.C. Advertising depends on the wants of consumers.D. Advertising is used to shape consumer wants. 11. In your textbook, all of the following are discussed as specific methods for achieving environmental goals, exceptA. incentives.B. state and federal regulations.C. creating externalities.D. pricing mechanisms. 12. An interdependent natural community that includes both living and nonliving entities is called a(n)A. ecology.B. natural region.C. inhabited region.D. ecosystem. 13. Today, in deciding whether an advertisement is deceptive or not, the Federal Trade Commission follows theA. pure consumer standard.B. reasonable consumer standard.C. informed consumer standard.D. "modified" ignorant consumer standard. 14. In 1916, the case of MacPherson v. Buick Motor Car changed product liability law byA. adopting the principle of caveat emptor.B. permitting consumers to sue manufacturers with whom they had no contractual relationships.C. permitting consumers to sue the retailer from whom they had purchased a product.D. adopting the principle of strict liability. 15. Puffery, the use of superlative and subjective praise in advertisements, is an example of which of the following misleading advertising techniques?A. Concealed factsB. ExaggerationC. Psychological appealsD. Ambiguity 16. If the government gives companies a tax break for purchasing and using pollution-control equipment, the government is providing an economic _______ to use the equipment.A. pricing mechanismB. paybackC. incentiveD. subsidy 17. In the United States, the federal agency that's responsible for policing the marketing process from manufacture to final sale is theA. Consumer Product Safety Commission.B. Securities and Exchange Commission.C. Fair Packaging and Labeling Commission.D. Federal Drug Administration Agency. 18. In advertising, all of the following are considered to be examples of labeling or packaging deceptions, exceptA. illusions due to package size or shape.B. omitting corporate logos.C. an "economy size" package that actually costs more than regular packages.D. raising prices in higher-income areas. 19. In a well-known case, Toys "R" Us threatened not to buy toys from any manufacturer who sold toys to a cost-cutting competitor. This illegal practice is known asA. price gouging.B. advertising ambiguity.C. price fixing.D. concealed facts. 20. Some sellers are exploiting a short-term situation in which buyers have few purchase options. The sellers are unnecessarily raising the price of an item. These sellers are engaging in priceA. ambiguity.B. inflation.C. fixing.D. gouging.
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