Midterm Questions

Question 1

The doctrine of externalization refers to the practice of corporate inside trading.

Answer 1

False

Question 2

Tariffs on imports are sometimes used to protect domestic industries from foreign competition.

Answer 2

True

Question 3

The “median” average as opposed to a simple average is determined by adding up all of the units and then dividing by the number of units.

Answer 3

False

Question 4

A corporation acting outside of its corporate powers or authority is said to be acting “ultra vires.”

Answer 4

True

Question 5

The United Nations has approximately 196 members.

Answer 5

True

Question 6

GDP (PPP) stands for Gross Domestic Product adjusted for the different purchasing power of countries.

Answer 6

True

Question 7

Robert Owen is known for the position that governments should not interfere with natural checks on population growth such as sickness and poverty.

Answer 7

False

Question 8

Laissez-faire is associated with the writing and theories of Adam Smith.

Answer 8

True

Question 9

Capitalism is an economic system that is based on the goodwill of individuals and in which the government determines what to produce, how to produce, and for whom to produce.

Answer 9

False

Question 10

“Conflict of Laws” is that branch of the legal system dealing with disagreements by litigants of judicial decisions.

Answer 10

False

Question 11

Critics of capitalism argue that it promotes selfishness and greed and leads to exploitation of the weak in favor of the strong.

Answer 11

True

Question 12

Income taxes rates on Corporate profits in the US are higher than in most other industrial countries however because of tax loopholes and tax havens many US multi-national corporations pay little or no federal taxes.

Answer 12

True

Question 13

Supporters of capitalism argue that i has produced the highest standard of living in the history of the world, decreases poverty, and is in keeping with human nature.

Answer 13

True

Question 14

The economists mostly concerned with the problem of population growth and the limited amount of resources available was Thomas Malthus.

Answer 14

True

Question 15

In the United States corporations generally are created by individual states and not by the federal government.

Answer 15

True

Question 16

A partnership can only be between one or more people

Answer 16

False

Question 17

Directors as opposed to shareholders choose the corporation’s officers

Answer 17

True

Question 18

Technical rules of evidence, such as the hearsay rule, need not be observed in administrative hearings.

Answer 18

True

Question 19

The largest religion in the world is Islam with Christianity as a close second.

Answer 19

False

Question 20

The Federal Trade Commission is charged with consumer protection and prevention of anti-competitive business practices.

Answer 20

True

Question 21

Mass production takes advantage of economies of scale.

Answer 21

True

Question 22

The Sunshine Act of 1976 is also known as the Open Meetings Law.

Answer 22

True

Question 23

Regulatory agencies are created by “enabling statutes” which are enacted by legislative bodies.

Answer 23

True

Question 24

“Fiscal and Monetary Policies” involve the government attempting to effect the economy by use of taxation as well as the amount of currency placed in circulation.

Answer 24

True

Question 25

All corporations are devoted to the making of money, and the maximizing of profits.

Answer 25

False

Question 26

The Security Exchange Commission is created by name in the Federal Constitution

Answer 26

False

Question 27

President Obama's economic policy mirrors the philosophy of Adam Smith and Milton Friedman

Answer 27

False

Question 28

The Citizens United Supreme Court case was decided by an unanimous vote.

Answer 28

False

Question 29

One justification of employment at will is that since an employee can quit at any time an employer should by able to fire him or her at any time.

Answer 29

True

Question 30

Shareholders, employees, and immediate customers can be considered primary stakeholders in a corporation.

Answer 30

True

Question 31

John Stuart Mill was known for his concern about the issue of individual freedom and liberty and women's rights.

Answer 31

True

Question 32

The purpose of an economic system is to satisfy the needs of the population.

Answer 32

True

Question 33

The Sarbenese-Oxley act was enacted in response to the growth of monopolies following the Great Depression.

Answer 33

False

Question 34

Of the 100 largest economies in the world, it is thought that the majority or at least close to a majority are corporations rather than countries.

Answer 34

True

Question 35

The nature of judicial powers involves monitoring, investigating, and prosecuting

Answer 35

False

Question 36

Adam Smith believed that self interest was a principle motivating force.

Answer 36

True

Question 37

Documents that are considered privileged can be obtained from federal agencies through the Freedom of Information Act.

Answer 37

False

Question 38

Corporate directors do not generally receive a salary or compensation for their services.

Answer 38

False

Question 39

The greatest work of Thomas Malthus was the "Communist Manifesto"

Answer 39

False

Question 40

States do not have regulatory agencies.

Answer 40

False

Question 41

Four main aspects of an economy is production, distribution, financing, and consumption

Answer 41

True

Question 42

Globalization is the process by which the economies of different countries become intertwined

Answer 42

True

Question 43

Presently the world population is less than 6 billion

Answer 43

False

Question 44

The US is ranked as number 1 in the Human Development Index

Answer 44

False

Question 45

The Great Depression took place in the 19th century and was ended through the policies of Theodore Roosevelt.

Answer 45

False

Question 46

Capitalism is based on private ownership of the means of production and the creation of goods or services for profit.

Answer 46

True

Question 47

Federal regulations apply both to the private and public sector of the economy.

Answer 47

False

Question 48

Unless agreed otherwise, each country has the right to establish its own laws regarding commerce.

Answer 48

True

Question 49

The Federal Civil Rights Act of 1964 prohibits discrimination in employment based on race and religion and nothing else.

Answer 49

False

Question 50

The saying, "From each according to their abilities to each according to their needs" is a quote directly from the Old Testament.

Answer 50

False

Question 51

The Constitution of the US expressly guarantees free market capitalism.

Answer 51

False

Question 52

The Equal Pay Act of 1963 outlaws disparity in pay based on gender for comparable work.

Answer 52

True

Question 53

The principal of a corporation is limiting the personal liability of the owners.

Answer 53

True

Question 54

The life expectancy of Cubans is close to the life expectancy of people from the USA

Answer 54

True

Question 55

A business trust is managed and controlled by the trustees and not the beneficiaries.

Answer 55

True

Question 56

A franchise is a separate company from the franchisor.

Answer 56

True

Question 57

"S" Corporations are also known as professional corporations.

Answer 57

False

Question 58

The economic philosophies of John Maynard Keynes and John Kenneth Galbraith had a great deal in common.

Answer 58

True

Question 59

Milton Friedman expressed the belief that the sole responsibility of corporate executives was to maximize profits for shareholders.

Answer 59

True

Question 60

John Stuart Mill was an advocate of the "No Harm" principle of morality.

Answer 60

True

Question 61

Judaism is the third largest of the world's major religions.

Answer 61

False

Question 62

The Wall Street Reform Act of 2010 gave shareholders in large corporations the right to veto high executive corporate pay.

Answer 62

False

Question 63

The Hobby Lobby Supreme Court case involves interpretation of the McCainFeingold Act relating to campaign financing.

Answer 63

False

Question 64

NYS recognizes an employees right to continued employment under all circumstances other than unsatisfactory work performance.

Answer 64

False

Question 65

The US and China have the two largest economies in the world.

Answer 65

True

Question 66

John Maynard Keynes opposed the use of fiscal or monetary polices such as pump priming to regulate the economy.

Answer 66

False

Question 67

The F.C.C is the federal agency charged with dealing with climate control.

Answer 67

False

Question 68

Which Presidential candidate claims to be a "Democratic Socialist?"

Answer 68

Bernie Sanders

Question 69

What is the appeal standard reversing a decision of a regulatory agency?

Answer 69

The decision was arbitrary or capricious or an abuse of discretion.

Question 70

Who advocated privatization, minimizing the role of government, school vouchers, and the legalization of marijuana?

Answer 70

Milton Friedman