Exam 1 Study Guide- These are among the issues discussed in the first three lectures- it is
not a complete list of the issues. There may be questions on the quiz not covered in this study
guide. This is not a complete list- but it should be helpful. I suggest you review
the PowerPoints of the three lectures
Reread the article on Ethics assigned before the first lecture. Note how the Four Quadrant ethics grid is
used. Understand the types of lenses that different that apply to individuals as they make business
descions
What do managers see as the major ethical problems in companies?
What are ways to foster ethical behavior
What is the difference between primary and secondary data
What do businesses seek to survive
Differentiate between an entrepreneur and an employee.
What are the five factors we discussed for creating wealth?
Who are the “stakeholders” in company (eg; stockholders, employees. customers…)
What are the major consumer trends we are seeing these days
What country accounted for the largest share of global GDP in 1820
What are the factors for a successful political and legal environment?
What are the four “Whats” of an economic system
What do we mean by BRIC countries. What does the abbreviation stand for?
What are some of the most admired countries in the world
Differentiate between the major economic systems discussed in class. What are the positive and
negatives of each (Socialism, Communism, Capitalism)
Know the differences among free competition, monopolistic competition, oligopoly, and monopoly
What are the differences between capitalism, socialism, and communism
Identify the differences between democratic socialism, autocratic socialism ( eg. China), and democratic
capitalism (e.g, Sweden)
What major economic indices did we discuss in class (e.g. GDP growth rate, Consumer Price Index,, Un
employment Rate) and know at about what level does the US government grow its GDP.
What annualized percentage did the US GDP decline in Q2 2020 due to the Covid pandemic
What are the major sources of revenues for the US government?
What are the major uses of revenues by the US government?
According to the “Gini Ratio, what countries have the greatest income inequality
According to the “Happiness Index” what countries appears the happiest
What are the characteristics of the US balance of trade and the relationship with trading partners (who
are the largest trading partners?)
What global company started out as a small hamburger joint in Madison Square Park, 2 blocks from
Baruch
What country is the US’s largest export partner (we sell more goods to that country than to others)
What country is the US’s largest import partner (we buy more goods from that country than from
others)
Why do we trade with other nations?
What are the various forms of trade protectionism?
What are the five modes of entry into foreign markets?
Which are the most risky and least risky ways to enter foreign markets
Sample Questions: The types of multiple choice questions on the quiz
1) What is the riskiest way to enter a foreign market:
A)
B)
C)
D)
Direct investment
Licensing
Indirect exporting
None of the above
Answer: D
2) Adam Smith is best known for:
A)
B)
C)
D)
Winning the Nobel Prize in economics in 2021
Writing “The Rights of Man”
Introducing the “Invisible Hand” of individuals in economics
Writing about economic inequality Answer: C
3) Which of these economies is not considered to be among the largest economies in the world
A)
B)
C)
D)
Canada
China
Japan
A and C Answer: A
4)The successful economic, political, and legal environment does not include:
A) Contract laws
B) Consumer price indices
C) Elimination of corruption
D) Freedom of ownership
Answer: B
5) Since World War II, as we discussed, the global environment for business has positively changed due
to all factors except which one:
a. International treaties for freer trade
b. Improved transportation and communication using new technologies
c. Open borders for refugees around the world
d. Relatively stable currencies
Answer: C