Exam 3: Economic Challenges Facing Contemporary Business

List and describe each of the four stages of the business cycle.

Many of the gains in Canadian productivity can be attributed to ________.

A typical demand curve slopes downward,which reflects that lower and lower prices attract larger and larger amounts purchased.

Most industrialized nations operate economies based on ________.

The two major policy tools available for controlling economic activity are ________.

If the market price is above the equilibrium price,________.

Business borrowing becomes more difficult when ________.

Individuals who lose their jobs due to structural reasons are generally unemployed for long periods.

Differentiate between macroeconomics and microeconomics.What types of economic activities might be included in each category?

If demand for a product rises sharply,its price should decline and the quantity supplied should increase.

By changing ________,the Bank of Canada can expand or shrink funds available to lend.

The willingness and ability of sellers to provide goods and services for sale in a market is referred to as ________.

A balanced budget occurs when ________.

A surplus will occur when ________.

________ is caused by increases in the prices of raw materials and other factors of production.

Regulated monopolies are illegal in Canada.

Assume the price of gasoline triples.What will likely happen to the demand for small cars? The demand curve will shift to the ________ and demand will ________.

Monopolistic competition differs from pure competition because sellers have some control over prices.

When the Bank of Canada increases interest rates,the rate of inflation should increase because it will cost more to borrow money.

In Canada,monetary policy is largely controlled by The House of Commons.