CHAPTER 2
MULTIPLE CHOICE QUESTIONS
1. It is generally accepted that the _______ includes the “soft parts” of the economy
consisting of nine industry supersectors.
a. service economy
b. industrial economy
c. agricultural economy
d. information economy
e. goods economy
2. Who provides an overview of each of the nine supersectors as well as a career
guide?
a. A government
b. US Bureau of Labor Statistics
c. Federal Trade Commission
d. Federal Communication Commission
e. American Marketing Association
3. Financial activities supersector consists of all the following except:
a. Finance
b. Insurance
c. Social assistance
d. Investments
e. Securities
4. The world’s largest industry in the private sector and highest projected generator of
jobs is:
a. business services
b. the hospitality industry
c. health services
d. professional services
e. the food service industry
5. Which subsector is the second largest employment industry, accounting for 13.3
million jobs?
a. Educational services
b. Healthcare
c. Social assistance
d. Professional services
e. The food services
6. Employment in the Department of Homeland Security is expected to increase while
the other jobs within which supersector will experience decline?
a. Educational
b. Business
c. Government
d. Information
e. Leisure and Hospitality
7. The service supersector that is the fastest growing sector in terms of employment is:
a. Wholesale and retail trade
b. Transportation and warehousing
c. Financial activities
d. Professional and business services
e. Education and health services
8. The leisure and hospitality industry comprises a variety of services. Which of the
following is not one of them?
a. food service
b. lodging
c. travel and tourism
d. meeting and convention planning
e. All the above are part of the hospitality industry
9. More than ____ percent of the workforce within the Arts, Entertainment, and
Recreation subsector has no formal education beyond high school.
a. 35
b. 40
c. 45
d. 50
e. 55
10. ____ percent of employees within the food service and drinking establishments are
between the ages of 16 and 19.
a. 15
b. 18
c. 19
d. 20
e. 22
11. The professional and business supersector includes all of the following except:
a. computer services
b. legal advice
c. hospitals
d. accounting
e. architectural
12. Which supersector has consulting projected to be the fastest growing service and
one of the highest paid for the period of 2006-2016?
a. Transportations and Warehousing
b. Professional and Business Services
c. Wholesale and Retail Trade
d. Education and Health Services
e. Other Services
13. Which of the following is considered as part of the other service sector?
a. pet services
b. health care
c. dentists
d. physicians
e. engineers
14. Most wholesalers are small, employing fewer than 20 workers. Which of the
following is not an occupation in which 7 out of 10 wholesalers work?
a. Administrative support
b. Sales
c. Transportation
d. Purchasing
e. Material-moving
15. The term that reflects the belief that without manufacturing, there will be less for
people to service and more people available to do less work is:
a. Materialismo snobbery
b. manufacturing superiority
c. industrial champions
d. manufacturing dichotomization
e. none of the above
16. The service industry criticism that low wages will possibly lead to dramatic changes
in future governments is:
a. Materialismo snobbery
b. dichotomization of wealth
c. service industries are slow to adopt new technology
d. service productivity is weak
e. service inflation is difficult to control
17. Paying close attention to whether one’s actions are right or wrong and why one is
behaving in that matter is referred to as:
a. business ethics
b. dichotomization of wealth
c. ethical vigilance
d. service ethics
e. materialism snobbery
18. The principles of moral conduct that guide behavior in the business world is called:
a. business ethics
b. ethics
c. ethical vigilance
d. service ethics
e. all of the above
19. Consumers often have a difficult time objectively evaluating services. This is due
primarily to:
a. intangibility
b. inseparability
c. perishability
d. standardization
e. heterogeneity
20. Which of the following reasons is not an explanation for why service consumers are
particularly vulnerable to ethical misconduct?
a. services possess few search attributes
b. services are often technical and specialized
c. services are deeds, efforts, or performances
d. the time lapse between performance and evaluation is sometimes
conducted in the distant future
e. many services are sold without guarantees and warranties.
21. Which of the following reasons is not an explanation for why service consumers are
particularly vulnerable to ethical misconduct?
a. services are provided by boundary-spanning personnel
b. variability in service performance is somewhat accepted
c. outcome-based reward systems may encourage ethical misconduct
d. consumers are involved in the production process
e. other consumers are involved in the production process
22. Service consumers often have little prepurchase information available to assist in
making an informed decision. This is due to:
a. the consumer’s involvement in the production process
b. services are performed by boundary-spanning personnel
c. services possess few search attributes
d. service providers are inherently unethical
e. services are sold without guarantees
23. Service providers who deliver their services outside the firm’s physical facilities are
called:
a. roaming salespeople
b. expanding service providers
c. boundary-spanning personnel
d. area coordinators
e. regional responders
24. Situations where the service provider feels torn between the needs of the customer,
the organization, and the service provider’s own personal interest are referred to as:
a. cognitive moral development
b. conflict of interest
c. organizational relationships
d. structure conflict
e. relationship conflict
25. Tim is an insurance agent who works for a large insurance agency. Tim’s friend,
who is also his client, wants Tim to coach him on how to obtain a larger insurance
settlement than what he legitimately has coming to him. This type of ethical issue is
called:
a. cognitive moral development
b. structure conflict
c. organizational relationships
d. conflict of interest
e. relationship conflict
26. The characteristics of truthfulness, integrity, and trustworthiness is called:
a. honesty
b. reward system
c. ethics
d. fairness
e. moral development
27. The process through which an individual adapts and comes to appreciate the values,
norms, and required behavior patterns of an organization is called:
a. a code of ethics
b. standards of conduct
c. employee socialization
d. rules for ethical conduct
e. conduct regulations
28. Formal standards of conduct that assist in defining proper organizational behavior
are called:
a. a code of ethics
b. standards of conduct
c. employee socialization
d. rules for ethical conduct
e. conduct regulations
29. Which of the following statements are correct?
a. research indicates that employees desire a code of ethics
b. research indicates that employees of firms that have codes of ethics
believe that violators of the code should be punished
c. leaders must be examples of the standards of ethical conduct
d. employees often emulate the behavior of their supervisors
e. All of the above
30. Which of the following is not a suggestion for controlling and managing ethical
behavior?
a. employee socialization
b. corrective control
c. service/product knowledge
d. opportunity
e. standards of conduct
SHORT-ANSWER ESSAYS
31. Rank and discuss the projected growth rates of the nine service supersectors.
32. Discuss how the term materialismo snobbery is related to service wages.
33. Discuss the comparisons of changing from an agricultural economy to an industrial
economy as they relate to the changes associated with moving from an industrial
economy to a service economy.
34. Discuss the reasons that consumers are particularly vulnerable to ethical misconduct
within the service sector.
35. Describe the consequences of ethical misconduct.
36. Discuss strategies that attempt to control ethical behavior.