Test Bank For Moral Issues in Business 12th Edition by William H. Shaw

Test Bank For Moral Issues in Business 12th Edition by William H. Shaw

Chapter 4—The Nature of CapitalismMULTIPLE CHOICE1. Which of the following historical stages of capitalism came first?a.financialb.mercantilec.industriald.state welfare  ANS: B PTS: 1 REF: p. 152 2.The profit motivea.is a fundamental feature of all societies.b.is no longer a key feature of capitalism.c.must be checked by competition if society is to benefit.d.is basically immoral.  ANS: C PTS: 1 REF: p. 154 3.A basic tenet of capitalism is thata.property refers only to physical objects.b.ownership is a simple relationship between a person and the thing owned.c.capitalism requires private ownership of the major means of production.d.in the 21st century, capitalism no longer requires capital.  ANS: C PTS: 1 REF: p. 155-156 4.The concept of the “invisible hand” meansa.pursuit of private gain will bring the best overall results.b.although it can’t be seen, the hand of government controls the economy.c.feudalism inevitably gives rise to capitalism.d.externalities must be internalized.  ANS: A PTS: 1 REF: p. 157 5.A basic premise of Adam Smith’s invisible hand argument isa.human beings try to avoid acquisitive behavior.b.when people are left to pursue their own economic interests, disaster looms.c.the division of labor, though good for the firm, reduces overall efficiency.d.We often get what we want from others by offering something they need from us.  ANS: D PTS: 1 REF: p. 157 6.One of the key features of capitalism isa.favoritism.b.cooperation.c.inequality.d.competition.  ANS: D PTS: 1 REF: p. 154 7.Some critics of capitalism believe that it rests on a flawed view of human beings becausea.capitalism produces equality.b.capitalism eliminates poverty.c.capitalism assumes that well-being comes from greater material consumption.d.capitalism offers a higher sense of purpose.  ANS: C PTS: 1 REF: p. 161 8.One reason for believing that in practice capitalism fails to live up to its own ideal of competition isa.we have government subsidies and protective tariffs.b.monopolies control almost all areas of economic life.c.so many small companies go bankrupt.d.the outsourcing of jobs.  ANS: A PTS: 1 REF: p. 162-164 9.Karl Marx believed thata.capitalist workers suffer from alienation.b.capitalism no longer exploits workers.c.industrialization does away with alienation.d.workers are alienated from their products, but not from themselves or other people.  ANS: A PTS: 1 REF: p. 165-166 10.An assessment of work in America isa.American manufacturing is growing faster than ever.b.American corporations ignore short-term performance.c.manufacturing still employs more people than government.d.many manufacturing companies have become “hollow” or “weightless”.  ANS: D PTS: 1 REF: p. 168