OLS 274 Exam 1 Chapters 1-4 Questions Answered Correctly Latest Update 2025-2026
Inflation benefits consumers with fixed incomes.
F/T - Answers False
Each country's exchange rate is generally quoted in terms of another country's currency.
F/T - Answers True
Joint ventures allow companies to share risks, costs, profits, and management responsibilities
with one or more host country nationals.
F/T - Answers True
Starbucks' efforts to go green with recyclable cups is an example of social responsibility.
F/T - Answers True
Emily works for a pharmaceutical company and gives a presentation on the need to expand the
company's geriatric division within the next ten years. Emily is helping to establish the
company's ________.
a. creativity
b. critical thinking
c. vision
d. productivity - Answers vision
Which of the following would result from devaluation of the U.S. dollar?
,a. Foreign goods would be less expensive for American consumers.
b. Foreign firms would have to pay more to purchase U.S. assets.
c. U.S. goods would sell for less abroad.
d. The cost of foreign vacations for U.S. citizens would be reduced. - Answers U.S. goods would
sell for less abroad.
Rene's boss has offered him a raise if Rene agrees to spend the night with her. This is an
example of:
a. whistle-blowing
b. social responsibility
c. sexual harassment
d. sexism - Answers sexual harassment
If the price of an imported product sells for more in the United States than it does in the
producing country, the producing country could be accused of dumping
T/F - Answers False
A country with a balance of payments surplus means ________.
a. monetary inflow exceeds monetary outflow
b. imports exceed exports
,c. monetary outflow exceeds monetary inflow
d. exports exceed imports - Answers monetary inflow exceeds monetary outflow
BMW and Toyota set up a factory in Brazil to produce minivans. Slightly different minivan
versions are sold in Brazil—one as a Toyota and one as a BMW. This is an example of ________.
a. countertrade
b. a joint venture
c. foreign licensing
d. direct exporting - Answers a joint venture
Employees should always be loyal, regardless of the situation
T/F - Answers False
The factors of production in an economic system are ________.
a. rent, wages, interest, and profit
b. natural resources, human resources, capital, and entrepreneurship
c. land, rent, capital, and human resources
d. capital, perseverance, natural resources, and human resources - Answers natural resources,
, human resources, capital, and entrepreneurship
Consumers often turn to lower-priced retailers for the goods they need during a business cycle
of ________.
a. recession
b. recovery
c. depression
d. prosperity - Answers recession
If a foreign company offers steel in the United States below the company's cost of production,
the company might be accused of ________.
a. a managed trade agreement
b. an import quota
c. protective tariffs
d. dumping - Answers dumping
The Federal Reserve can implement both expansionary and restrictive monetary policies.
T/F - Answers True
The ____________ of a coffee-growing company include its employees, customers, suppliers, and
the community members where the company is located.
Inflation benefits consumers with fixed incomes.
F/T - Answers False
Each country's exchange rate is generally quoted in terms of another country's currency.
F/T - Answers True
Joint ventures allow companies to share risks, costs, profits, and management responsibilities
with one or more host country nationals.
F/T - Answers True
Starbucks' efforts to go green with recyclable cups is an example of social responsibility.
F/T - Answers True
Emily works for a pharmaceutical company and gives a presentation on the need to expand the
company's geriatric division within the next ten years. Emily is helping to establish the
company's ________.
a. creativity
b. critical thinking
c. vision
d. productivity - Answers vision
Which of the following would result from devaluation of the U.S. dollar?
,a. Foreign goods would be less expensive for American consumers.
b. Foreign firms would have to pay more to purchase U.S. assets.
c. U.S. goods would sell for less abroad.
d. The cost of foreign vacations for U.S. citizens would be reduced. - Answers U.S. goods would
sell for less abroad.
Rene's boss has offered him a raise if Rene agrees to spend the night with her. This is an
example of:
a. whistle-blowing
b. social responsibility
c. sexual harassment
d. sexism - Answers sexual harassment
If the price of an imported product sells for more in the United States than it does in the
producing country, the producing country could be accused of dumping
T/F - Answers False
A country with a balance of payments surplus means ________.
a. monetary inflow exceeds monetary outflow
b. imports exceed exports
,c. monetary outflow exceeds monetary inflow
d. exports exceed imports - Answers monetary inflow exceeds monetary outflow
BMW and Toyota set up a factory in Brazil to produce minivans. Slightly different minivan
versions are sold in Brazil—one as a Toyota and one as a BMW. This is an example of ________.
a. countertrade
b. a joint venture
c. foreign licensing
d. direct exporting - Answers a joint venture
Employees should always be loyal, regardless of the situation
T/F - Answers False
The factors of production in an economic system are ________.
a. rent, wages, interest, and profit
b. natural resources, human resources, capital, and entrepreneurship
c. land, rent, capital, and human resources
d. capital, perseverance, natural resources, and human resources - Answers natural resources,
, human resources, capital, and entrepreneurship
Consumers often turn to lower-priced retailers for the goods they need during a business cycle
of ________.
a. recession
b. recovery
c. depression
d. prosperity - Answers recession
If a foreign company offers steel in the United States below the company's cost of production,
the company might be accused of ________.
a. a managed trade agreement
b. an import quota
c. protective tariffs
d. dumping - Answers dumping
The Federal Reserve can implement both expansionary and restrictive monetary policies.
T/F - Answers True
The ____________ of a coffee-growing company include its employees, customers, suppliers, and
the community members where the company is located.
