(Test Bank) CCJ 4694 white collar crime test bank

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105TEST BANK CHAPTER 1 Introduction Chapter 1 Multiple Choice 1. Which governor was convicted on charges of po litical corruption and was the fourth governor from the state of Illinois to be incarcerated since 1970? a. Jesse Ventura b. John Kasich c. Rod Blagojevich d. George Ryan Answer: c Page number: 2 Level: Basic 2. When was the term “white-collar crime” was first used? a. 1909 b. 1939 c. 1959 d. 1989 Answer: b Page number: 3 Level: Basic 3. Who coined the term “white-collar crime”? a. Upton Sinclair b. John D. Rockefeller c. E.A. Ross d. Edwin Sutherland Answer: d Page number: 3 Level: Intermediate 4. The term “white-collar” is based on: a. the types of victims. b. occupations of the perpetrator. c. offenders’ associ ation with religion. d. its association with factories and tradesmen. Answer: b Page number: 3 Level: Intermediate 106 5. Which of the following describe s a theory that forces social scientists to reconsider accepted theories? a. Debunking b. Historical c. Revised d. Vacuum Answer: a Page number: 4 Level: Intermediate 6. Which of the following has not contributed to the initial examination of white-collar crime? a. Exposure of monopolistic practices b. Increasing power of corporations c. Muckraking journalists d. Agricultural society values Answer: d Page number: 5 Level: Intermediate 7. Based on the 1907 book Sin and Society , which of the following refers to a pillar of society/paragon of virtue who in reality was interested only in personal gain using any means? a. Atavist b. Robber baron c. Criminaloid d. Elite deviant Answer: c Page number: 5 Level: Intermediate 8. A ponzi scheme attempts to cheat people by: a. selling stocks in nonexist ent companies to investors. b. selling worthless real estate to investors. c. paying original investors w ith money from new investors. d. creating an investment sche me that targets the elderly. Answer: c Page number: 5 Level: Intermediate 9. Which is another term for a Ponzi scheme? a. Reverse investment b. Pyramid c. Triangle d. Upside-down Answer: b Page number: 6 107Level: Basic 10. ________ of scams using spam mailings on th e Internet are really Ponzi schemes . a. 40% b. 50% c. 60% d. 80% Answer: d Page number: 8 Level: Basic 11. Which year brought the close of 500 different banks in the United States? a. 1913 b. 1923 c. 1933 d. 1943 Answer: c Page number: 8 Level: Basic 12. What decade saw renewed interest in the study of white-collar crime? a. 1950s b. 1960s c. 1970s d. 1980s Answer: c Page number: 9 Level: Basic 13. The 1980s saw a dramatic increase in the incide nce of white-collar crime. One of the reasons for the increase may have been: a. support for collect ive welfare ideals. b. increase in the quality of public schools. c. government deregulation. d. focus on non-material goals. Answer: c Page number: 10 Level: Intermediate 14. Barry Minkow regarded money generated from stock sales as: a. a source of working capital to be used to buy new equipment. b. money he could use to invest in other companies. c. money he could use to pay some cred itors without other cr editors finding out. d. a great source of revenue that did not have to be paid back. Answer: d Page number: 12 108Level: Intermediate 15. The 1990s could be dubbed as: a. the “betrayal decade.” b. the “greed decade.” c. the “scam decade.” d. the “great decade.” Answer: a Page number: 11 Level: Basic 16. White-collar crime of the 1990s included all of the following except : a. the killing of a champion stallion for insurance money. b. a biologist faking research findings. c. the U.S. President being found guilty of perjury d. the U.S. Treasurer being found guilty of tax evasion Answer: c Page number: 14 Level: Intermediate 17. The Keystone and Oakwood bank frauds ar e particularly appa lling because of: a. the amount of money taken. b. the ease with which out siders were able to infiltrate the banks. c. the effect on the national economy. d. the identity of the victims. Answer: d Page number: 16 Level: Intermediate 18. The First Equity fraud caught the public’s attention for all of the following reasons except : a. location of occurrence. b. amount of money involved. c. date of occurrence. d. identity of perpetrators. Answer: d Page number: 18 Level: Intermediate 19. Difficulties in studying white-collar crime include all of the following except : a. the complex nature of crime. b. crime definition. c. not enough data. d. too many data from too many sources. Answer: d Page number: 19 Level: Intermediate 109 20. In his pioneering 1949 study, Sutherland used data relating to many industries from many different sources. This is referred to as ________ data. a. longitudinal b. cross-sectional c. complex d. qualitative Answer: b Page number: 19 Level: Basic 21. Industry-specific studies showed that although white-collar crime can occur in a variety of settings, it is concentrated in cer tain specific industries, such as: a. securities, defense contractors, and savings and loans. b. banking, the computer industry, and pharmaceuticals. c. sports entertainment, the record industry, and gambling entertainment. d. entertainment, banking, ranching, and farming. Answer: a Page number: 21 Level: Intermediate 22. What two types of fraud did individuals identif y as most prevalent in victimization surveys? a. Overcharging for medical serv ices and overcharging for drugs b. Government untruths about use of tax money and Medicaid c. False advertising and selling outdated foods d. Prize scams and auto repairs Answer: d Page number: 22 Level: Basic 23. The financial cost of street crime is what fraction of the cost of white-collar crime? a. less than 1/10 b. over half c. 1/4 d. 1/3 Answer: a Page number: 23 Level: Intermediate 24. The public suffers social and political harm in addition to financial harm. Loss of trust when the privileged wealthy few are punished less severely than others is what one soci al scientist refers to as: a. culture cost. b. hidden cost. c. demoralization cost. d. opportunity cost. 110Answer: c Page number: 23 Level: Intermediate 25. The public does not regard white- collar crime as a severe problem . Reasons for this include all of the following except : a. consequences difficult to visualize. b. the low cost of white-collar crime. c. the complicated nature of the facts. d. faceless victims and faceless villains. Answer: b Page number: 23 Level: Intermediate 26. Which is an especially alarming characteristic of white-collar crime that, ironically, is also an explanation of low public interest in white-collar crime? a. The small number of people actually victimized by white-collar crime b. Excessive government regulation c. Delay in harm d. Cover-up by media Answer: c Page number: 24 Level: Intermediate 27. Which major Wall Street investment firm “rigge d” the U.S. Treasury bond market and received little backlash from the media and other outlets? a. Salomon Brothers b. Enron c. Einstein Brothers d. Madoff and Associates Answer: a Page number: 24 Level: Intermediate Chapter 1 True-False 1. Edwin Sutherland coined the term “white-collar crime.” a. True b. False Answer: a Page number: 3 Level: Basic 2. A theory that forces social scientists to r econsider accepted theories is a debunking theory. a. True 111b. False Answer: a Page number: 4 Level: Intermediate 3. Atavists enjoys a public image as pillars of the community and paragons of virtue. a. True b. False Answer: b Page number: 5 Level: Intermediate 4. Charles Ponzi is one of the most influential white-collar criminals in American history. a. True b. False Answer: a Page number: 5 Level: Basic 5. Ponzi schemes are occurring less now th an they ever have before. a. True b. False Answer: b Page number: 6 Level: Basic 6. Many scams involving junk e-mail are for pyramid schemes. a. True b. False Answer: a Page number: 8 Level: Basic 7. Barry Minkow regarded money generated from stoc k sales as money he could use to invest in other companies. a. True b. False Answer: b Page number: 11 Level: Difficult 8. The 1980s was dubbed the “betrayal decade.” a. True b. False Answer: b Page number: 12 112Level: Basic 9. Sutherland’s cross-sectional st udies indicate that white-collar crime is relatively common among large corporations. a. True b. False Answer: a Page number: 20 Level: Intermediate 10. Victimization surveys have been used to gain more information about the prevalence of street crime for many years. a. True b. False Answer: a Page number: 22 Level: Basic 11. According to victimization surv eys, approximately half of all respondents reported that they had been targets of an attempted or successful fraud. a. True b. False Answer: b Page number: 22 Level: Intermediate 12. Personal frauds cost American tax payers an estimated $40 billion annually. a. True b. False Answer: a Page number: 22 Level: Basic 13. The consequences of corporate accounti ng fraud can be extremely expensive. a. True b. False Answer: a Page number: 23 Level: Basic 14. Loss of trust when the privilege d wealthy few are punished less seve rely than others is referred to as the opportunity cost. a. True b. False Answer: b Page number: 23 113Level: Intermediate 15. Americans tend to view white-collar crime as a problem, but not a particularly severe one. a. True b. False Answer: a Page number: 23 Level: Basic Chapter 1 Fill in the Blank 1. The term “white-collar crime” was coined in ________________. Answer: 1939 Page number: 3 Level: Basic 2. Edwin ________________ defined white-collar crime as crimes committed by a person of respectability and high social status in the course of his or her occupation. Answer: Sutherland Page number: 3 Level: Basic 3. A Ponzi scheme is also known as a ________________ scheme. Answer: pyramid Page number: 6 Level: Intermediate 4. During the Great Depression, the na tion was rocked by a monetary cr isis that eventually led to the ________________ of over 500 banks. Answer: closure Page number: 8 Level: Basic 5. White-collar crime appeared to be on the upswing in the ________________. Answer: 1990s Page number: 13 Level: Basic 6. ________________ is another sign of the “betrayal decade.” 114Answer: Embezzlement Page number: 13 Level: Intermediate 7. Victimization ________________ have recently started to collect data on white-collar crimes. Answer: surveys Page number: 22 Level: Basic 8. Some costs of white-collar criminalit y ________________be measured in dollars and cents. Answer: cannot Page number: 23 Level: Basic 9. The government pays so little attention to white-collar crime because members of the ________________ do not express outrage over it as they do over street crime. Answer: public Page number: 23 Level: Intermediate Chapter 1 Matching Match the key terns listed in Column 1 to the de scription in Column 2. Use each description only once. 1. Edwin Sutherland a. A theory that forces social scientists to reconsider accepted theories 2. White-collar crime b. A scheme th at attempts to cheat people by paying original investors with money from new investors 3. Debunking theory c. Coined the term “white-collar” crime 4. Criminaloid d. Used by Edwin Sutherland to study data relating to many industries from different sources 5. Ponzi scheme e. Loss of trust when the privileged wealthy few are punished less severely than others 6. Cross-sectional data f. Is based on the occupations of the perpetrator 7. Demoralization cost g. Former treasurer of the United States imprisoned for tax fraud 8. Catalina Vasquez Villalpando h. A pillar of society/paragon of virtue who in reality was interested on ly in personal gain using any means 115Answer: 1. *c 2. *f 3. *a 4. *h 5. *b 6. *d 7. *e 8. *g Level: Basic Chapter 1 Essay 1. Why were the 1980s thought of as the “greed decade”? Answer: • The unprecedented magnitude of white-collar crimes • The cultural shift in Americans need for material objects • The abuse of power among high- standing, trusted individuals Page number: 10 Level: Intermediate 2. Why is there is so much more public outcry over street crime compared to white-collar crime? Answer: • The actual definition of white-collar crime • The government has failed to produce be tter data on white-collar crimes • White-collar crimes are less obvious Page number: 19 Level: Difficult 3. Which industries tend to have a higher level of criminality than others? Discuss the reasons for this phenomenon. Answer: • Defense contractors sometimes overcharge, use def ective products, and conf licts of interests • The securities industry includes excessive trading, unsuitable recommendations, and unauthorized trading Page number: 21 Level: Difficult Chapter 1 Critical Thinking 1161. Evaluate Ponzi schemes. What is a Ponzi scheme? Discu ss examples from the text that resulted in substantial losses. How do people become victims of Ponzi schemes? Answer: A Ponzi scheme attempts to cheat peop le by paying original inve stors with money from new investors. Answers may vary. Page number: 6 Level: Difficult 2. Explore the reasons why the government has been slow in collecting data on white-collar crime. Answer: The reason is that the pub lic does not express outrage over wh ite-collar crime compared to street crimes. The government ha s devoted very few resources to gathering data specific to white- collar crime, and has only recen tly begun collecting such data. Page number: 23 Level: Difficult 117CHAPTER 2 Crimes Against Consumers Chapter 2 Multiple Choice 1. In 1999, Susan Collins described the predator y practices of sweepstakes companies as “increasingly deceptive and increasingly aggressive .” She made these remarks in what setting? a. As chairman of a Senate committee b. During a television news magazine segment c. In testimony before a Congressional committee d. In a nationally syndicated newspaper column Answer: a Page number: 33 Level: Intermediate 2. Magazine sweepstakes typically rely on which two ploys to entice people to buy magazines and enter contests? a. Gift certificates and free merchandise b. Personal guarantees a nd personalized letters c. Travel and restaurant guarantees d. Free magazines and coupons Answer: b Page number: 34 Level: Intermediate 3. American Family Publishers uses which two i ndividuals as front men for its sweepstakes and promotions? a. Ed McMahon and Dick Clark b. Dan Rather and Peter Jennings c. Pat Robertson and Martin Sheen d. Johnny Carson and James Darren Answer: a Page number: 35 Level: Basic 4. American Family Publishers used all of the following techniques to trick entrants except : a. Free merchandise b. Small print c. YOU’RE OUR NEWEST $12 MILLION WINNER d. Backgrounds that made print difficult to read Answer: a Page number: 35 Level: Intermediate 5. American Family is half-owned by which media giant? 118a. Disney Corporation b. Sony Pictures c. Turner Broadcasting d. Time Warner Answer: d Page number: 35 Level: Basic 6. Which telemarketing scam relies on use of a cer tain area code to make money just from phone calls? a. 777 calls b. 900 calls c. 800 calls d. 888 calls Answer: b Page number: 36 Level: Basic 7. 5 – 10% of all minutes logged on the telephone time scams are concentr ated in what area? a. Psychic hotlines b. Music sales c. Work at home offices d. Sex lines Answer: d Page number: 38 Level: Intermediate 8. The term “laissez faire” refers to which of the following? a. Governments should not interfere with free markets b. Consumers being protected from fraud artists c. Buyers should be aware of offe rs that sound too good to be true d. Fairness to consumers Answer: a Page number: 38 Level: Intermediate 9. The term “caveat emptor” refers to which of the following? a. Buyers should be aware of offe rs that sound too good to be true b. Governments should not interfere with free markets c. Consumers being protected from fraud artists d. Fairness to consumers Answer: a Page number: 38 Level: Intermediate 10. A criticism of the caveat emptor doctrine is: 119a. too much government regulation. b. reduced profit for businesses. c. hurts consumers by raising prices. d. latent defects. Answer: d Page number: 39 Level: Intermediate 11. Some of the worst con artist s practice their craft based on me teorological events. These are known as ________ con artists. a. event b. disaster c. weather d. special occasion Answer: b Page number: 40 Level: Basic 12. The number one consumer compla int concerning fraud involves: a. refinance loans. b. home improvement. c. auto repair. d. telemarketing. Answer: c Page number: 41 Level: Basic 13. The following companies have all been accuse d of fraud involving car problems and possible solutions except : a. Ford. b. Kmart. c. Goodyear. d. Firestone. Answer: a Page number: 42 Level: Basic 14. Telemarketers target a ll of the following groups except : a. family members of AIDS victims. b. the bereaved. c. those worried about dependence on foreign oil. d. college students living away from home for the first time. Answer: d Page number: 43 Level: Intermediate 12015. A boiler room might be characterized by: a. telephones. b. well-dressed salesmen. c. support personnel. d. fancy furniture. Answer: a Page number: Basic Level: 44 16. The front, the drive, and the close are all part of the telephone swindl e. The drive includes: a. empty slogans and statistics. b. sense of urgency. c. assessment of assets. d. information about competitors. Answer: a Page number: 45 Level: Intermediate 17. A victim of a fraud is known as a mark because he/she: a. could fall for future scams. b. has been identified as a victim. c. was a more available victim. d. is an easy target. Answer: a Page number: 45 Level: Intermediate 18. The “phoner toner” salesman coerced the sc hool district office manager to pay fraudulent invoices by: a. threatening to accuse her of accepting gift s and then paying for goods not received. b. threatening her children. c. threatening to disclose an affair to her husband. d. refusing to send supplies for students. Answer: a Page number: 46 Level: Intermediate 19. Schemes that offer fee-based credit cards, lo an applications saying “guaranteed approval,” home equity loans, and trade schools for low-paying jobs ta rget what group of people? a. The elderly b. The unemployed c. The middle class d. The poor Answer: d Page number: 47 Level: Basic 121 20. Transamerica Financial Serv ices and Mellon Bank and also Resources Financial and Fleet Financial bank worked together to offer home loans to low-income people because: a. there were not enough lenders in predominantly minority areas. b. the finance companies wanted to assist first-time home buyers. c. it enabled both to offer lower interest rates. d. the banks wanted to conceal invol vement in this lending practice. Answer: d Page number: 48 Level: Intermediate 21. The three major categories of advert isements include all of the following except : a. Celebrity b. Informative c. Puffing d. Deceptive Answer: a Page number: 52 Level: Basic 22. Which federal agency regulates advertising? a. FTC b. SEC c. FDIC d. FCC Answer: a Page number: 52 Level: Basic 23. The United States is one of the few countries that permit television adve rtising for products that target children. Most countri es consider this to be: a. illegal. b. immoral. c. dishonest. d. disrespectful. Answer: b Page number: 56 Level: Intermediate 24. Which of the following activities coul d be described as “bait and switch”? a. Substituting a more expensive ite m with a product of lesser quality b. Substituting a generic product for a brand name product c. Substitution a product of lesser qu ality with a more expensive item d. Using misleading ads to get cons umers to buy substandard products Answer: a Page number: 57 122Level: Intermediate 25. Monopolistic activities were criminalized in the Sherman Antitrust Act of 1890. Reasons for penalizing monopolistic behavior include all of the following except : a. benefits to big business. b. reduced competition. c. poorer-quality products. d. higher prices. Answer: a Page number: 57 Level: Intermediate 26. Microsoft was prosecuted for engaging in m onopolistic practices for pr oviding a free internet browser with its operating system. This prac tice is known as bundling. Why was free bad? a. Consumers were forced into buying a low-quality browser. b. Microsoft had a secret agreement with other browser manufacturers. c. Consumers got no choice of browser. d. After competition was eliminated there was no restraint on pricing. Answer: d Page number: 62 Level: Intermediate 27. What two industries are frequent targets of antitrust litigation? a. Oil and airlines b. Car repair and steel c. Utility and drug companies d. Grocery and department stores Answer: a Page number: 73 Level: Basic 28. When governments are the target of price-fixing by vendors provi ding goods and services, it is called: a. bid-rigging. b. government fraud. c. illegal rigging. d. contract manipulation. Answer: a Page number: 74 Level: Basic 29. Pharmaceutical companies have been criti cized by Congress for excessive and unreasonable profits. Drug company profits are more than ________ times the average profit of Fortune 500 companies. a. three b. two 123c. five d. four Answer: a Page number: 78 Level: Intermediate 30. Items that look like brand name merchandi se but in fact are counterfeit are: a. markoffs. b. ripoffs. c. liftoffs. d. knockoffs. Answer: d Page number: 79 Level: Basic Chapter 2 True-False 1. Computer-generated personalized letters are a standard marketing ploy in the sweepstakes industry. a. True b. False Answer: a Page number: 34 Level: Intermediate 2. American Family employed Ed McMahon and J ohnny Carson as sweepstake representatives. a. True b. False Answer: b Page number: 35 Level: Basic 3. Many legitimate companies use 900 numbers to serve customers. a. True b. False Answer: a Page number: 37 Level: Intermediate 4. Live “sex lines” account for 5 to 10% of all “900” minutes logged. a. True b. False Answer: a Page number: 38 Level: Basic 124 5. The myth of the free market and caveat emptor work in tandem to make consumers vulnerable to unscrupulous vendors. a. True b. False Answer: a Page number: 38 Level: Intermediate 6. Crimes against consumers do not carry a heavy social cost. a. True b. False Answer: b Page number: 38 Level: Basic 7. Consumer fraud entails the use of deceit, lies, or misrepresentations to entice customers to buy goods or services. a. True b. False Answer: b Page number: 39 Level: Basic 8. The collapse of the home mortgage market has led to very few scams. a. True b. False Answer: b Page number: 40 Level: Basic 9. Auto repairs make up the largest category of complaints received by Congressional panels. a. True b. False Answer: a Page number: 41 Level: Basic 10. Telemarketing fraud is characterized by use of th e Internet to get consum ers to send money to the promoter for worthless or overvalued products or services. a. True b. False Answer: b Page number: 41 Level: Basic 12511. The classic telephone swindle consists of the front, the drive, and the walk. a. True b. False Answer: b Page number: 45 Level: Basic 12. Victims of telemarketing fraud are called “marks.” a. True b. False Answer: a Page number: 45 Level: Basic 13. Two of the most notable figures caught in the Double Barrel were John A. Field III and Markus K. Dalton. a. True b. False Answer: a Page number: 47 Level: Intermediate 14. The airline industry and the oil industry have been favorite target s of antitrust action. a. True b. False Answer: a Page number: 73 Level: Basic 15. Price-gouging occurs when entities take advant age of laws, monopolies, and real or contrived shortages to demand excessive payments. a. True b. False Answer: a Page number: 77 Level: Intermediate Chapter 2 Fill in the Blank 1. About ________________ % of American households ma ke at least one 900 call each year. Answer: 17 Page number: 37 Level: Intermediate 1262. Consumer ________________ is a category of crimes against consumers. Answer: fraud Page number: 39 Level: Basic 3. Much of the auto repair fraud that has been uncovered implicates major ________________ chains. Answer: corporate Page number: 42 Level: Intermediate 4. ________________ % of Americans have been targeted at least once by telemarketers. Answer: 90 Page number: 42 Level: Basic 5. The classic telephone swindle consists of thre e calls known as the front, the drive, and the ________________. Answer: close Page number: 45 Level: Basic 6. Telemarketing fraudsters tend to view their victims as ________________ in their plight. Answer: deserving Page number: 47 Level: Difficult 7. The Federal Trade Commission has classifi ed ads as informative, puffing, and ________________. Answer: deceptive Page number: 52 Level: Basic 8. One of the fastest growing forms of decep tive products occur in ads for weight-loss ________________. Answer: products Page number: 54 Level: Intermediate 1279. The United States is one of the few count ries in the world that ________________advertisers to sell products to children via television. Answer: permits Page number: 56 Level: Intermediate 10. Price-fixing is criminalized under the ________________Antitrust Act of 1890. Answer: Sherman Page number: 57 Level: Basic Chapter 2 Matching Match the key terns listed in Column 1 to the de scription in Column 2. Use each description only once. 1. Telemarketing fraud a. The covert substitution of low-quality counterfeit versions of brand-name consumer products. 2. Mark Suckman b. Consists of three calls beginning with the front 3. Telephone swindle c. Characterized by the use of the telephone to get consumers to send money to the promoter for worthless or overvalued products or services 4. False advertising d. Deceptive advertisements that make false or misleading claims 5. Bait and switch e. Used a telemarketing scheme to convince a public-school office manager to send him checks totaling $2 million for nothing 6. Price-fixing f. Bid-rigging where consumers lose the benefits of competition 7. Price-gouging g. Defined by the FTC as an alluring but insincere offer to sell a product or service which the advertiser does not intend or want to sell 8. Knockoffs h. The practi ce of taking extraordinary advantages of consumers because of the bias of the law, monopoly of the market, or because of contrived or real shortages Answer: 1. *c 2. *e 1283. *b 4. *d 5. *g 6. *f 7. *h 8. *a Level: Intermediate Chapter 2 Essay 1. What are some of the tactics th at are used to entice people into believing that they are actual winners in sweepstakes? Answer: Answers may include personal guarantees a nd personalized letters st ating they have been selected as winners. Page number: 34 Level: Intermediate 2. Evaluate consumer fraud. What does consumer fraud entail? Give an example of consumer fraud discussed in the text. Answer: Consumer fraud entails the use of deceit, lie s, or misrepresentations to entice customers to buy goods or services. Examples include a furnitur e store holding a “Going Out of Business” sale every week, numerous illegitima te mail-order companies, and sending a woman a mink coat made from the fur around the animal’s genital area. Page number: 39 Level: Intermediate 3. Discuss and give examples of the “Wal-Mart Way.” Answer: • The Hurricane Katrina disaster, when Wal-Ma rt told employees that they would only receive three days of pay, compared to othe r companies that offered their employees 90 days of pay to recover • The Colorado Wal-Mart store toy drive, in whic h the manager ordered all of the toys in the bin to be placed back on the shelf unless the toy drive organizer could produce receipts for the items purchased Page number: 68 Level: Difficult Chapter 2 Critical Thinking 1. Do you think the United States is losing manufactur ing jobs? Examine historical data, taking into account inflation, population growth, and employment in other sectors. Explain how data can be compared over time. 129 Answer: The United States is lo sing manufacturing jobs for ma ny reasons. For example, knockoff rip-offs cost American manufactur ers billions of dollars. Trademar k infringements are also reasons for the loss of manufacturing j obs. American manufacturers can ge t more cost-efficient labor in other countries (such as China), comp ared with American workers. Page number: 79 Level: Difficult 2. Evaluate knockoff rip-offs. What are they? Which i ndustries are most prone to knockoffs? Why do you think the knockoff business is booming? Answer: Knockoffs are the covert substitutions of low-quality counterfeit ve rsions of brand-name consumer products. Knockoffs are most often found in the bootlegging of videotapes, video games, computer software, furniture, and the garment industry. Page number: 79 Level: Difficult