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Question 1 of 40


In the market approach to consumer protection, what would lead to higher safety standards in consumer products?


A. government regulation 


B. inter-corporate agreements 


C. foreign trade agreements 


D. consumer demand


Question 2 of 40


What dubious advice does Credit Solutions initially give its clients?


A. not to pay their credit cards 


B. to sell off all of their fungible assets 


C. to max out their credit cards 


D. to pay off their mortgage with their credit card


Question 3 of 40


Psychological privacy is best described as __________.


A. freedom from being questioned about our opinions and beliefs 


B. the right to remain silent in a court of law 


C. the right to own our ideas and inventions 


D. freedom from having our personal thoughts and beliefs invaded


Question 4 of 40


Caveat emptor is a Latin phrase used to mean what in modern business?


A. “The customer is always right.” 


B. “You break it, you buy it.” 


C. “Let the buyer beware.” 


D. “Always be closing.”


Question 5 of 40


Research has shown people are irrational and inconsistent when weighing choices. Which of the following is NOT true regarding human risk assessment?


A. People tend to overestimate the danger posed by catastrophic but unlikely events, such as tornadoes. 


B. People pay too much attention to warning labels and other trivial information about a product. 


C. People are often blind to the real risks associated with commonplace activities, such as driving. 


D. All of the above


Question 6 of 40


Which of the following is considered a valid criticism of the contract view?


A. Government regulation hinders its effectiveness. 


B. The “invisible hand” of market forces makes it redundant. 


C. The view assumes that the buyer and seller are equally qualified to evaluate the product. 


D. Advertising effectively negates the validity of the contract.


Question 7 of 40


Under the theory of due care, under what conditions should the distribution of a product be strictly controlled?


A. when selling to an international market 


B. when the product is produced by a monopoly 


C. when the product requires expertise to handle safely 


D. all of the above


Question 8 of 40


The consumers who think ahead, consider, and watch every penny they spend, knowing how their choices will affect their preferences are known as __________.  


A. irrational utility minimizers 


B. rational utility maximizers 


C. rational consumption maximizers 


D. all the above


Question 9 of 40


Which view of customer protection is most opposed to government intervention?


A. duty of care theory 


B. social cost theory 


C. market theory 


D. communist theory


Question 10 of 40


The __________ theory of a business’s duties to consumers claims that a business has four main moral duties: the basic duty of (a. complying with the terms of the sales contract, and the secondary duties of (b. disclosing the nature of the product, (c. avoiding misrepresentation, and (d. avoiding the use of duress and undue influence.


A. contractual


B. commercial


C. competitive


D. consumptive


Question 11 of 40


A study by Consumer Reports found errors in what percent of the credit reports that it analyzed?


A. less than 1% 


B. 11% 


C. 43% 


D. nearly 100%


Question 12 of 40


Which of the following is NOT a significant challenge when exercising due care?


A. determining what is an acceptable level of risk 


B. informing customers of potential hazards 


C. predicting all possible modes of product failure 


D. determining which customers are able to safely use a product


Question 13 of 40


__________ is privacy with respect to a person’s inner life. This includes the person’s thoughts and plans, personal beliefs and values, feelings, and wants.


A. Physical privacy 


B. Psychological privacy 


C. Personal privacy 


D. Spiritual privacy


Question 14 of 40


Critics to the market approach respond that the benefits of free markets are obtained only when the markets have all of the seven defining characteristics. Which of the below is a defining characteristic?


A. numerous buyers and sellers 


B. unlimited access to and exit from the market 


C. unregulated market 


D. all the above


Question 15 of 40


Which of the following is NOT a necessary aspect of commercial advertising?


A. addresses a mass audience 


B. communicates to potential buyers 


C. induces the purchase of a product or service 


D. contains information about the product or service


Question 16 of 40


What is “market power?”


A. the ability for free markets to self-regulate 


B. the energy wasted through needless competition 


C. the ability of large firms to use their assets to control a market 


D. the ability of marketing campaigns to affect consumer desires 


Reset Selection


Question 17 of 40


Which of the following is NOT a strictly ethical criticism of advertising?


A. It can affect the consumer’s beliefs. 


B. It can manipulate the desires of children. 


C. It can use deception as a means of improving sales. 


D. It can venerate materialistic values.


Question 18 of 40


Some advertisements that are intended to manipulate consumers violate what right?


A. the right to free speech 


B. the consumer’s right to be treated as a free and equal rational being 


C. the right to choose between competitors in a free market 


D. the right to personal safety


Question 19 of 40


Which of the following is NOT a key component of the right to privacy?


A. control over who is disclosing information about oneself 


B. control over to whom information about oneself is disclosed 


C. control over what information about oneself is disclosed 


D. control over how much information about oneself is disclosed


Question 20 of 40


Which of the following is considered a valid challenge to the social cost view?


A. It allows consumers to sue manufacturers for their own clumsiness or incompetence. 


B. It encourages unsafe use of products in hopes of large settlements. 


C. It can be unfair to companies as it may punish them for unforeseeable effects. 


D. It can negatively impact insurance companies, driving them out of business.


Question 21 of 40


“It might be true that society as a whole would benefit by having some group discriminated against” is a/an __________ argument for discrimination.


A. Kantian 


B. Utilitarian 


C. Capitalist 


D. Communist


Question 22 of 40


Kant would argue that humans should be treated as ends in themselves and never as a means to an end. With respect to discrimination, this implies that people should be treated as what?


A. equals


B. property


C. competitors


D. family


Question 23 of 40


Since the jobs women have historically taken pay low wages and salaries, proponents of __________ programs attempt not to place women into higher paying jobs, but to increase the salaries of those jobs where women currently are employed.


A. competitive value 


B. competitive position 


C. comparable worth 


D. comparable equity


Question 24 of 40


With only a high school education, which group earned the least in 2008?


A. whites


B. women


C. blacks


D. Hispanics


Question 25 of 40


What is an affirmative action program?  


A. a program to increase employee morale and thereby improve utility 


B. a program through which ethical behavior is recognized and rewarded 


C. a program meant to correct imbalances in the demographics of a workforce 


D. a program aimed to compensate individuals harmed by a product before they attempt to sue


Question 26 of 40


In 2008, what fraction of an average white salary did Hispanics earn in America?


A. They earned more than an average white salary. 


B. 96% 


C. 65% 


D. 12%


Question 27 of 40


What is meant by the term “glass ceiling?”


A. a governmental program requiring upper management to be more transparent to their subordinates 


B. the idea that lower level employees are always watching those above them 


C. a metaphor for the fragility of the hierarchy of a large business 


D. an invisible barrier that prevents advancement to women and minorities


Question 28 of 40


Which of the following is a utilitarian argument against discrimination?  


A. Discrimination leads to an inefficient use of human resources. 


B. Discrimination violates basic human rights. 


C. Discrimination results in an unjust distribution of society’s benefits and burdens. 


D. Discrimination violates the rule of free entry in a free market.


Question 29 of 40


Which is untrue of affirmative action?


A. It requires firms to only hire minorities and women until the ratio is correct. 


B. All businesses in America are required to participate in affirmative action. 


C. It requires that any layoffs target the majority population first. 


D. All of the above


Question 30 of 40


An argument against affirmative action plans is that criteria besides sex and race must be weighed when making job decisions because of which of the following?


A. Unqualified workers will be hired and productivity will go down. 


B. Jobs have a significant impact on life or health or the entire success of the company. 


C. It will turn us into a more racially and sexually conscious nation. 


D. Unqualified workers will be hired and productivity will go down, and it will also turn us into a more racially and sexually conscious nation.


Question 31 of 40


Which is a clear indication of discrimination?


A. A company preferentially hires new employees with graduate degrees. 


B. A disproportionate number of a certain group’s members hold less desirable positions despite their preferences and abilities. 


C. Promotions are given based solely on sales figures. 


D. A business owner promotes his son to a high-paying position in the company.


Question 32 of 40


Types of comparisons to provide evidence of discrimination are __________.


A. comparisons of average benefits given to various groups 


B. comparisons of the proportion of a group found in the lowest levels of the institution 


C. comparisons of the proportion of a group found in the most advantageous positions in the institution 


D. all the above


Question 33 of 40


Widely recognized categories of discriminatory practices include __________.


A. recruitment practices that rely on the word-of-mouth referrals of present employees who tend to recruit only from the groups already represented 


B. screening practices that include qualifications not relevant to a job 


C. promotion practices that place groups on separate tracks or that rely solely on seniority when past discrimination has kept women or minorities out of senior positions 


D. all the above


Question 34 of 40


Which of the following can be considered sexual harassment?


A. requesting sexual favors 


B. regular compliments on appearance 


C. touching exposed skin or private areas 


D. all of the above


Question 35 of 40


What was Roger Misiolek accused of?


A. sex-based and race-based insults 


B. physical violence 


C. sexual harassment 


D. all of the above


Question 36 of 40


Which is true of discrimination?


A. It must be intentional. 


B. It must have a negative impact. 


C. It must be individual. 


D. It must be direct.


Question 37 of 40


In 2008, which group had the largest portion of its population in poverty?


A. whites


B. blacks


C. Hispanics 


D. Asians


Question 38 of 40


Which of the following is most responsible for the wage gap between men and women?


A. education


B. absenteeism


C. work experience 


D. none of the above


Question 39 of 40


Who argued that it is unjust to give some people more opportunity than others?


A. Kant 


B. Rawls 


C. Marx 


D. Kohlberg


Question 40 of 40


Which occupation has the smallest proportion of women employed?


A. social workers 


B. lawyers


C. pilots


D. artists

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