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Name Chapter 02 The Dynamic Environment
Description Questions which Blackboard's assessment component is incapable of supporting are not
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Instructions

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Question 1 True/False

Question Industrial growth increases the living standards of society.
Answer True
False
Correct Feedback correct
Incorrect Feedback incorrect
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Question Industrial growth changes the values of society.
Answer True
False
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Question The total amount of goods and services created in world GDP in the
20th century is less than all of the goods and services produced in recorded
human history.
Answer True
False
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True/False

Question 4
Question The Gini index is a statistic in which 0 percent stands for absolute
inequality, where one person has all the income.
Answer True
False
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Question The industrial revolution increased wealth by solving the problem of
uneven distribution of wealth.
Answer True
False
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Question The industrial revolution decreased the gap between the rich and poor
around the world.
Answer True
False
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Question When the Gini index is used, inequality is decreased as the
percentage rises toward 100 percent.
Answer True
False
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Question Economic growth by itself increases income inequality within modern
nations.
Answer True
False

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Question During industrialization, incomes of the poorest people rise in
proportion to the rise in average income for the country as a whole.
Answer True
False
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Question The vast majority of the poor people on earth live in economies that
have been transformed by industrial growth.
Answer True
False
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Question If capitalism is harnessed to create economic growth, the poor in that
country will benefit.
Answer True
False
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Question The HDI index is based on the assumption that income alone is an
adequate measure of the standard of living.
Answer True
False
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Question The modern nation-state arose out of the ruin of the Roman Empire.
Answer

True
False
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Question Changes in the business environment can sometimes result from
unknown and unpredictable causes.
Answer True
False
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Question Trade liberalization occurs when nations promote trade by easing tariff
restrictions but not non-tariff restrictions.
Answer True
False
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Question A new technology can be either an opportunity or a threat to
businesses.
Answer True
False
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Question Values that are based on the assumption of affluence are called
postmodern values.
Answer True
False
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Question Business is encouraged but not constrained by government.
Answer True
False
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Question In the United States, in 1913, spending was 8 percent of GDP, but by
2003 it had risen to 35 percent.
Answer True
False
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Question In the U.S., the government can regulate just about every aspect of
business if it decides to do so.
Answer True
False
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Question The legal environment of business includes legislation, regulation and
litigation.
Answer True
False
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Question Ethical behavior goes beyond what is required by law.
Answer True
False

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Question Guidelines are often derived from emerging international conduct
standards.
Answer True
False
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Question Economic activity is a geophysical force in society.
Answer True
False
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Question Business can shape society but it cannot change the course of history.
Answer True
False
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Question 26 Multiple Choice

Question This is a plausible story of the future based on assumptions about how
current trends might play out.
Answer Proposition.
Scenario.
Historical force.
Premiss.
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Question This is an economic policy of lowering tariffs and other barriers to
encourage trade.
Answer

Liberalization.
Industrial revolution.
Automated export system.
Populism.
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Question Which of the following statements about historical forces is true?
Answer It is of known origin.
It is divided into six separate but related forces.
It is a social force.
It causes a distinct chain of events.
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Question Which of the following statements about the industrial revolution is
true?
Answer It was a statistical measure of inequality in society.
It was the creation of networks of human interaction that
span worldwide distances.
It was the transforming changes that turned agricultural
economies into industrial economies.
It was formed of three elements, a ruling authority, citizens
and a territory with fixed borders.
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correct
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Question All of the following statements about the industrial revolution are true
EXCEPT:
Answer It requires specific conditions like a sufficiency of capital,
labor, natural resources, etc.
It elevates living standards.
It shifts values.
It promoted an explosive economic growth that lessened the
gap between the rich and poor.
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correct
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Question This is a statistical measure of global income inequalities.
Answer Human development index.
Edi.
Gini index.
Grdi.
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Question The Gini index ranges between:
Answer Zero to minus one.
Zero percent and 100 percent.
Minus one to plus one.
One percent and 50 percent.
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Question What is measured by the Gini index?
Answer Dispersion of education and information.
Income inequality.
Progress of humanity.
Global retail development.
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Question All of the following statements about the Gini index are true EXCEPT:
Answer 0 percent stands for absolute equality.
It measures both income dispersion and progress of
humanity.
100 percent represents absolute inequality.
Inequality becomes greater as the percentage figure rises
toward 100.
Correct

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Question According to the Gini index, the cause of most of the rise in world
income inequality is:
Answer A growing gap between the peoples of rich and poor
nations.
The increasing trend toward liberalization.
A growing separation of rich and poor within nations.
The transition from high to low fertility in nations.
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Question The HDI scale ranges from:
Answer Zero to minus one.
Zero to one.
Minus one to plus one.
Minus one to zero.
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Question Which of the following is not a category used by HDI to measure the
development of nations?
Answer Longevity.
Replacement fertility rate.
Knowledge.
Gross domestic product per capita.
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Question According to the 2004 Human Development Index, which of the
following countries has the highest HDI index in the world?
Answer U.S.

Canada.
Norway.
Mexico.
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Question According to the text, this refers to the number of children a woman
must have on average to ensure that one daughter survives to reproductive age.
Answer Sub-replacement fertility.
Net reproduction rate.
Total fertility rate.
Replacement fertility rate.
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Question According to the text, all of the following will drive future population
changes EXCEPT:
Answer Falling fertility.
Low mortality.
Lesser income disparities.
Migration.
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Question All of the following are implications of population trends EXCEPT:
Answer Overall world growth is slowing and it will be highest in less
industrialized regions.
Growth will continue to strain the earth's ecosystems.
The West is in demographic decline compared with other
peoples.
Western market values and business ideology will be
accepted globally.
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correct
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Question New technologies:
Answer Foster the productivity gains that sustain long-term
economic progress.
Continue to strain the earth's ecosystems.
Create new societal expectations for corporate behavior.
Play a larger role in population dynamics than in the past.
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Question Globalization is:
Answer A nation-state formed of three elements, a ruling authority,
citizens and a territory with fixed borders.
A set of reinforcing beliefs and values that constructs a
worldview.
The creation of networks of human interaction that span
worldwide distances.
The philosophy in which nations promote trade by easing
restrictions, including both tariff and non-tariff barriers.
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correct
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Question In the international arena, this is an actor formed of three elements, a
ruling authority, citizens and a territory with fixed borders.
Answer State.
Nation-state.
Country.
Nation.
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Question The nation-state is formed of all of the following elements EXCEPT:
Answer A ruling authority.
Citizens.
A territory with fixed borders.

Liberalization.
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Question This is the unit of human organization in which individuals and cultural
groups can influence their circumstances and future.
Answer State.
Country.
Nation-state.
Nation.
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Question All of the following are forces that penetrate nation-states and reduce
their autonomy EXCEPT:
Answer Epidemics.
Market forces.
Climate change.
Population explosion.
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Question According to the text, a set of reinforcing beliefs and values that
constructs a worldview is called:
Answer An ideology.
A culture.
History.
An economy.
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Question Which of the following fulfills the human need for concepts and
categories of meaning that explain daily life?
Answer History.

Culture.
Ideology.
Economy.
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Question All of the following are indicators of the economic environment
EXCEPT:
Answer Legislation.
Interest rates.
Wages.
The actions of competitors.
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Question This philosophy is the bedrock of economic globalization.
Answer Monopoly.
Foreign direct investment.
Oligopoly.
Trade liberalization.
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Question Capital investment by private firms outside their home countries is:
Answer FDI.
FDA.
FDIC.
FATS.
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Question A philosophy in which nations promote trade by easing restrictions,
including both tariff and non-tariff barriers is:
Answer Foreign direct investment.

Trade liberalization.
Monopoly.
Oligopoly.
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Question This allows manipulation of objects the size of atoms.
Answer Nanotechnology.
Single atom manipulation.
Atom chip quantum processor.
Scanning tunneling microscopy.
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Question These Web sites are open to collaborative editing by multiple
individuals.
Answer Tags.
Wikis.
Blogs.
Links.
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Question A system of shared knowledge, values, norms and customs that are
acquired by social learning is called a(n):
Answer Democracy.
Socialist society.
Culture.
Communist society.
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Question These are values based on assumptions of affluence, for example,
quality of life and self-expression.
Answer

Traditional values.
Modern values.
Postmodern values.
Materialist values.
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Question Identify the form of government requiring the three elements of popular
sovereignty, political liberty and majority rule.
Answer Democracy.
Socialism.
Communism.
Liberalism.
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Question Democracy promotes:
Answer Popular sovereignty, political liberty and common
ownership.
Popular sovereignty, political liberty and majority rule.
Common ownership, political liberty and majority rule.
Popular sovereignty, atheism and majority rule.
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incorrect
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Question Identify the law where guidelines are often derived from emerging
international conduct standards.
Answer Criminal law.
Soft law.
Common law.
Hard law.
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Question 61 Fill in the Blank

Question A _____ is a plausible story of the future based on assumptions about
how current trends might play out.
Answer scenario
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Question _____ defined a historical force as "anything that does or helps to do,
work".
Answer Henry Adams
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Question _____ is the first historical force.
Answer Industrial revolution
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Question In the Gini index, _____ represents absolute equality and _____
represents absolute inequality.
Answer zero; hundred
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Question During industrialization, the incomes of the poorest people rise in
_____ to the rise in average income of the country as a whole.
Answer proportion
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Question _____ is the statistical measure of progress of humanity that ranges
from zero to one.
Answer HDI index

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Question _____ has the highest HDI index.
Answer Norway
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Question _____ refers to the number of children a woman must have on
average to ensure that one daughter survives to reproductive age.
Answer Replacement fertility rate
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Question _____ is the creation of networks of human interaction that span
worldwide distances.
Answer Globalization
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Question An _____ is a set of reinforcing beliefs and values that create a
worldview.
Answer ideology
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Question 71 Essay

Question Explain what is meant by an "historical force" in history.
Answer Historical force is an environmental force of unknown origin and
mysterious action that provides the energy for events. The discussion
divides this force, somewhat artificially, into nine separate but related
forces causing distinct chains of events.
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Question 72 Essay

Question Discuss the industrial revolution.
Answer The industrial revolution included the transforming changes that turn
agricultural economies into industrial economies. This transformation
occurred in the presence of certain economic, technological, political
and philosophical conditions.
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Question 73 Essay

Question What is meant by the Gini index and how is it computed?
Answer The Gini index is a statistical measure of inequality in which 0 percent is
perfect equality, that is, everyone has the same amount of wealth and
100 percent is absolute inequality, that is, a single person has all wealth.
Using this measure, inequality becomes greater as the percentage
figure rises toward 100.
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Question 74 Essay

Question What is the Human Development Index and what is it used for?
Answer The Human Development Index (HDI) is a statistical tool used by the
United Nations for measuring the progress of humanity. It is based on
the theory that income alone is not an adequate measure of the
standard of living, let alone a rich and fulfilling life.
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Question 75 Essay

Question What three factors are used to measure the HDI of nations?
Answer HDI measures the development of nations as an average of scores in
three equally weighted categories: 1) Longevity, 2) knowledge and 3)
income.
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Question 76 Essay

Question Explain what is meant by an ideology and give a specific example of
this concept.
Answer An ideology is a set of reinforcing beliefs and values that constructs a
worldview. The industrial revolution in the West was facilitated by a set
of interlocking ideologies, including capitalism, but also constitutional
democracy, which protected the rights that allowed individualism to
flourish.
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Question 77 Essay

Question What is meant by the "Protestant ethic?"
Answer It is the belief that sacred authority calls for hard work, saving, thrift and
honesty as necessary for salvation.
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Question 78 Essay

Question What are the important components of the economic environment of
business?
Answer The economic environment consists of forces that influence market
operations, including overall economic activity, commodity prices,
interest rates, currency fluctuations, wages, competitors' actions,
technology change and government policies.
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Question 79 Essay

Question Explain what is meant by "trade liberalization".
Answer Trade liberalization is philosophies in which nations promote trade by
easing restrictions, including both tariff and non-tariff barriers. This
philosophy, sometimes referred to as simply liberalization, is the
bedrock of economic globalization.
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Question 80 Essay

Question Explain the concept of "soft law" and give a specific example of how a
business could act in accord with this concept.
Answer Soft laws are voluntarily adopted codes of conduct setting forth rules
about corporate behavior. Guidelines are often derived from emerging
international conduct standards. For example, saving money by firing a
long-time employee the week before he/she qualified for a pension was
always ignoble. In 1974, the Employee Retirement Income Security Act
made it illegal as well.
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