WCC Test 2|61 Questions with Verified Answers,100% CORRECT, Exams of Business Economics

Download WCC Test 2|61 Questions with Verified Answers,100% CORRECT and more Exams Business Economics in PDF only on Docsity!

WCC Test 2|61 Questions with Verified Answers

What is the Great Recession? - CORRECT ANSWER greatest economical crash since great depression 2007- from housing market banks collapsed, auto industry bankrupt, stock market lost 33.8 percent of value, unemployment around 10%, 2.6 mill lost jobs, 4 mill homes foreclosed, 49 mill people food insecure, what are some factors that caused the Great Recession? - CORRECT ANSWER financial crash in 2008, elite deviance, people assumed housing prices always go up What is a flipper? - CORRECT ANSWER people who buy homes and renovate to make money off the home What did people assume about housing prices? - CORRECT ANSWER people assume they always go up What is a subprime mortgage? - CORRECT ANSWER used to keep people buying houses "we dont think you can afford it" loans given to people the bank thinks are unlikely to pay them back higher interest rates and fees made up 7% of mortgages in 2001 and 20% in 2005 What is an adjustable loan? - CORRECT ANSWER interests small at first

interest increases to the point where person cannot afford payments a mortgage with an interest rate that may change one or more times during the life of the loan What is a credit default swap? - CORRECT ANSWER An insurance policy on a financial product that pays when a particular loan goes bad insurance in case housing market fails who were some of the key players in creating the Great Recession? - CORRECT ANSWER Treasury Secretary Henry Paulson Federal Reserve Chair Ben Bernanke N.Y. Fed Chair Timothy Geithner Lehman Brothers CEO Richard Fuld Morgan Stanley CEO John Mack Goldman Sack CEO loyd blankfein JP Morgan CEO JAime Diamon BAnk of AMerica CEO Ken Lewis President of S&P Kathleen Corbet President George W Bush What role did the government play in the Great Recession? - CORRECT ANSWER First, the report identified failure on the part of the government to regulate the financial industry. This failure to regulate included the Fed's inability to stop banks from giving mortgages to people who subsequently proved to be a bad credit risk. reduced down payments and loosened underiding standards created fannie mae and freddie mac during new deal to help people buy homes fed gov spun them into private companies after the housing market stabilized people assumed the gov would back any loans they made this was not the law

fannie mae and freddie mac agreed to buy more questionable loans from private banks then they were involved in 50% of all mortgages any regulations on loans seen as bad stated housing market in trouble the federal bank lowered interest rates but it did not help people with subprime mortgages caused people with traditional loans to lose houses Fed gov backed sale of Bear sterns to JP morgan Chase for 236mill fed gov paid off losses from the sale that were more than 1bill freddie mac and fannie mae had no money left because they had ingrained into banking mortgages gov bailed out freddie mac and fannie mae and got control of them gov did not bail out lehman bros all hell broke loose gov gives AIG $123bill and recieved 79.9% equity on Sep 20, Us treasury asked congress to approve $700bill to bail out any banks that had issues What is TARP? - CORRECT ANSWER Troubled Asset Relief Program it helps stabilize the US financial system restart economic growth and prevent avoidable foreclosures

What happened to the auto industry? - CORRECT ANSWER went bankrupt increase in price of fuel linked to energy crisis which discouraged purchases of SUVs and trucks sales began to slide after they were not offering good fuel efficient models went into crisis What did the government get after the Great Recession? - CORRECT ANSWER reformed financial markets and its supervision regulation to avoid similar events in future Dod Frank Act enacted fiscal stimulus programs that used different combinations of government spending and tax cuts. These programs included the Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009 What are some of the consequences of the Great Recession? - CORRECT ANSWER economy dropped 770 points and $700 bill was allotted Obama elected president because he was calm What was the Depression of 1873? - CORRECT ANSWER The Panic of 1873 stands as the first global depression brought about by industrial capitalism. It was caused by too many railroads and factories being formed than existing markets could bear and the over-loaning by banks to those projects. Initially, the panic was sparked when banks and businesses began to go bankrupt. The situation quickly snowballed from there.Significance: As a result of the Panic of 1873, the debate between the farmers who wanted inflated greenback money vs. the bankers who wanted the gold standard formed.

values began to desinigrate, corrupt politics, economic problems What was the Great Depression? - CORRECT ANSWER A prolonged worldwide economic downturn that began in 1929 with the collapse of the New York Stock Exchange. Longest economic recession in modern history unemployment rose Why is a crime in sales-related jobs common? - CORRECT ANSWER young people dont see job as a career high turnover low pay a lot of independence What are some of the types of crimes that can be committed in sales jobs? - CORRECT ANSWER sweetheart deals, overcharging, short charging, coupon stuffing, embezzlement, theft of goods or money, credit for non existing returns, over ordering supplies, theft of credit card info What are some of the strategies used to stop crime in sales jobs? - CORRECT ANSWER importation strategies-only hire best people technological strategies- use tech to prevent theft internal strategy- emphasize practices and policies to employees organizational culture- promote positive culture awareness strategy- increase awareness of problem of theft

What is the entertainment services system? - CORRECT ANSWER settings where consumers buy things for entertainment What did Chipotle show about restaurants? - CORRECT ANSWER chipotle had intentionally misinformed the public on their E coli problem, said the problem was Australian beef, not true because CDC said their workers were dirty and infecting food, What are some crimes restaurants can commit? - CORRECT ANSWER aduterating food(infecting), not keeping restaurant clean, false advertising, short waiting What did the McDonald's lawsuit show us about white-collar crime? - CORRECT ANSWER they hired public relations companies to make stella look bad so that people would not believe her, when they did in fact make their coffee too hot. they lied and said their coffee was not fit for consumption. offered her $80 but ended up getting sued by her and losing and having to pay her 2.7 mill(reduces to 480,000) for treating her bad on top of 160,00 for med bills. What did the meatpacking industry show us about white-collar crime? - CORRECT ANSWER - before 1967, 4D meat could be used -it was from diseased, dying, dead, and disabled cows -one inspections found sawdust, snuff and flies in meat -Hormel foods found guilty of reconditioning meat which meant they would use meat returned from supermarkets and tried to make it look good, they would smoke the meat and sell it in ghetto stores -Nebraska beef found guilty of mixing rotten dead meat with fresh meat and labeling it with fake dates, said that healthy heads went with diseased bodies -pink slime: fed parts of meat that was extra and meant for dogs to humans, not illegal but it was past referred to as not fit for human consumption, many stores stopped carrying it after blogger exposed it, but many public schools still used it. there are two sides of that argument What can the food industry show us about obesity in the United States? - CORRECT ANSWER What do cereal boxes show us about white-collar crime? - CORRECT ANSWER

What does the Schlitterbahn Water Park show us about white-collar crime? - CORRECT ANSWER wanted to build world's tallest waterslide delayed opening due to safety concerns rafts with sandbags would fly off track opened july 2014 put netting and asked people's weight on aug 8 10 yr old boy killed when slammed into net What is the lawsuit at retailers, such as Kohl's, show us about white-collar crime?

• CORRECT ANSWER false reference pricing scheme, advertise fake before price and show much much it is off after sale price, never sold it at original sale price that was fake, this is just to get people to buy things What is the diesel dupe - CORRECT ANSWER Volkswagen sold "clean" diesel cars, 600,000 cars sold in US and 8mill worldwide, explained as great for environment, claimed similar to prius, environmentalists and independent testers found pollution was actually 40 times legal limit, volkswagen had installed device that would hide readings when being tested on beds for cleanliness, 40 people involved in Germany, CEO charged with conspiracy and fraud, signed plea and said engineers knew what they were doing, given biggest fine in US history $30bill, money goes to repairs, buybacks, fixes and criminal penalties What is the sales/service system - CORRECT ANSWER sell basic services and goods home repair, auto repair, clothing stores, etc What are some types of white-collar crime that can occur in the sales/service system? - CORRECT ANSWER quoting estimates and saying it costs more than it actually does can do repairs that are not needed

What is auto-repair fraud? - CORRECT ANSWER most reported fraud by consumers unnecessary repairs auto sales fraud rolling odometer back What is insurance fraud? - CORRECT ANSWER deception or misrepresentation of material fact to insurer or insurance agent or claimer chief motive: financial profit, provides insured and insurer with opportunities for exploitation people do not understand insurance people dont know they are victims What is an investment-focused crime? - CORRECT ANSWER getting customers to invest in various insurance products misrepresenting info to investors when they decide to invest What is churning? - CORRECT ANSWER getting policy holders to chnage policy so agent can get commission What is falsifying account information? - CORRECT ANSWER change info to collect commission What is promissory note fraud - CORRECT ANSWER customers invest in scam notes What is annuities fraud? - CORRECT ANSWER insurance companies lie about expected returns

Why would standardized tests scores, like the SAT, be going down over time? - CORRECT ANSWER people are in college to get a job, not because they care to learn. Compared to students in the past what do we know about students today - CORRECT ANSWER they study more(increased 3 hours), hw has increased by 30%, class time increased by 14%, more students take AP and college courses(921%increase), grade inflation, education believed only route to success, What is a standardized exam?What are some problems with standardized exams?

• CORRECT ANSWER exams administered and scored in a predetermined standard manor, rely heavily on question format, automatically scored, measure academic aptitude and achievement biased to white students, used to punish teachers, individual needs ignored, stifle creativity, who's knowledge are we learning, test scores all we care about, teachers quitting, dont measure what students learn, schools cheating to increase funds, companies making millions off tests How was the SAT developed? - CORRECT ANSWER Carl Brigham writes book about how some races intellectually inferior, Nordic blood makes you smarter he said, developed test to keep out inferior people, develops SAT, how was the IQ test developed? - CORRECT ANSWER Binet-Simon test created to classify mentally disabled kids so they could be places in proper classes, Binet said test could not be taken out of context, said people had to be similar on environmental factors then... Goddard created test to show immigrants are not as intelligent as americans, focused on art consumer products and entertainment, gave a # then... Terman updated Binet-Simon test with Goddards test, divided mental age by chronological age and multiplied by 100, Called it Intelligent Quotient, were used in CA to put students in remedial classes, black people disproportionately put in remedial classes

What was the Larry P. v. Wilson Riles (1979) case? - CORRECT ANSWER Riles disagreed with Larry and said the IQ test not biased, Supreme court found for Larry and says it is clearly biased, What does it mean that universities equate rejection rates with prestige? - CORRECT ANSWER They know rankings are based on rejection rates so they reject more people to move up in ranking Compared to other countries, how does the United States standardized exam scores compare? - CORRECT ANSWER we score lower than others Why do the standardized exam scores of the United States differ from other countries? - CORRECT ANSWER we try to educate everyone, not all countries do this. Our education system has very bad schools and veyr good schools while other countries "bad" schools are much better than our very bad schools What happened in the Atlanta Public Schools and standardized exams? - CORRECT ANSWER - Around 2001, the scores began to improve dramatically- Atlanta was seen as a model of how to improve public education

• They cheated
• Cheating parties were held where teachers and administrators would erase wrong answers- Teachers were told to make changes to the exams
• In 2013, more than 250,00 wrong answers were changed
• 44 out of the 56 schools were involved
• 178 teachers ad administrators changed their answers
• 11 teachers were convicted of racketeering in 2015
• Their sentence ranged from 6 months to 20 years What happened in the St. Louis area with public schools? - CORRECT ANSWER - The Missouri Supreme Court rules that any student in an unaccredited school can go to another school
• Riverview Gardens and Normandy are over 90% black
• Riverview students can go to Mehlville
• Normandy students to Francis Howell
• Mehlville and Francis Howell are over 90% white

What was the Scopes Monkey Trial? - CORRECT ANSWER - Tennessee passed the butler Act which made it illegal to teach anything that was in opposition to the Bible

• John Scopes was a teacher in Dayton, TN
• He bout a school-approved biology book and taught evolution
• The case became a media sensation
• This may have been a long time ago, but we still have interference from politicians
• Act 911 passed in 2017 (Arkansas)
• All public building must display the sign what did the state of Texas attempt to do with history textbooks? - CORRECT ANSWER - Use American expansionism instead of imperialism
• No mention of the labor movement. Instead, students will learn that free enterprise is the best system
• Jerry Falwell's Moral Majority, the Heritage Foundation, and the NRA are all included
• The textbooks downplay slavery as the cause of the civil war- They said salves were brought to the United States to help cultivate new farms
• The books say that the salves brought with them a varied culture that as blended together in the U.S.A.
• The violence of the KKK is downplayed What are some problems with the politcalization of education? - CORRECT ANSWER - Executive Order on Combating Race and Sex Stereotyping- Trump signed this on September 22, 2020
• White privilege, 1619 project, critical race theory, etc.
• We were asked how much we discussed critical race theory
• This was overturned by Biden
• Critical race theory has become a major political issue
• The survey found that about 96% of teachers and professors said hey do not teach it
• Fox News mentioned critical race theory 1,3000 in 3 ½ months
• 9 states (Idaho, Oklahoma, Tennessee, Texas, Iowa, New Hampshire, South Carolina, Arizona, and North Dakota) have passed laws banning teaching critical race theory
• The laws are vague and often do not mention critical race theory in them

• The fallout of the bans on critical rave theory is problematic- Teachers are not sure what is acceptable to teach and not teach
• Teachers have been fired for disusing inequality in class- Colleges and universities are dripping classes that discuss race and other inequities What has happened to the cost of college? Why? - CORRECT ANSWER Over the last 30 years, tuition costs have soared for a variety of reasons. State funding cuts, expanding administrative staffs, and increased construction and facility costs, increase in fed student loan ability, all play a role What does it mean that the state does not support universities? - CORRECT ANSWER - We have taken a public good and made it an individual good
• We do not support public education anymore
• We do not pay taxes What is an adjunct professor? What are some problems with the use of adjunct professors? - CORRECT ANSWER part time professor, they are not paid on par with full time professors, do not often have offices or resources proved to full time professors, do not get benefits, often teach at multiple universities, make 20,000 to 25,000 a year What do schools do to recruit more students? - CORRECT ANSWER To attract more students universities have created more things the student likes, but have nothing to do with education
• Stadiums
• Fancy dorms
• Athletic workout centers What role do administration staff play in the rising cost of college? - CORRECT ANSWER - The number of professors is flat- Vice presidents, media coordinators, coaches, wellness coaches, etc .- In the past 25 years the number of administrators at universities has doubled
• These positions are often highly paid How does the federal government make money off of student loan debt? - CORRECT ANSWER the interest rates

What are some problems with for-profit colleges? - CORRECT ANSWER Acceptance rates are high. Too much debt for students who can't afford it. Half of tuition goes toward something other than academics. Accreditation doesn't always mean that a for-profit college is reputable. False advertising case study - CORRECT ANSWER Sketchers and Reebok promoted shoe that caused weightloss and promoted fitness mid 2000s the toning shoe industry reached 1billion in sales shoes unstable making you work to stand up which "promoted fitness" sketchers said chiropractors found prof shoes worked participants in chiropractors research were family members and his wife was vice president of sketchers and he was paid by sketchers consumer products safety commission said shoes were hurting people federal trade commission said shoes did no toning or shaping Reebok and sketchers sued sep 11 reebok paid 25 million to stop marketing shoes customers submitted claims to FTC to get refunds by august 2012 refunds given to 315,000 people sketchers paid 40 million to stop promoting shoes and 5 million to settle state claims, and 5 million for class action lawsuit Academic fraud case study - CORRECT ANSWER edmc(education management corporation), 2nd largest for profit school

recieved 11 billion in finds between 2003- in 2011 michael mahoney and lynntoya washington filed lawsuits towards edmc both worked for edmc they will get 15% and 25% of profits from the award lawsuit found edmc paid recruiters to target people employees were told to find and target what a person is insecure in edmc also paid recruiters commissions based on how many students they got to take out loans students qualitfications and application not considered at all students were told there would be career services before they enrolled however those career services never existed perspective employers not actually real schools never checked to see if students went to class US, California, Florida, Illinois, and Indiana all join lawsuit edmc reached agreement with all suing parties they didnt admit anything and paid 95.5 million money split between parties and plantiffs(people who snitched) no student loans forgiven states in lawsuit wiped out 800,000 loans with money they got in lawsuit

students in other states applied to get loans forgiven Mortgage fraud case study - CORRECT ANSWER