Question 1

The three main ways in which business can influence government policy are

Accepted Answer

A)  advertising, lobbyists, and trade associations. 
B)  political contributions, letters to the editors of newspapers, and advertising. 
C)  advertising, trade associations, and political contributions. 
D)  trade associations, lobbyists, and letters to the editors of newspapers. 
E)  lobbyists, political contributions, and advertising. 
A)  advertising, lobbyists, and trade associations. 
B)  political contributions, letters to the editors of newspapers, and advertising. 
C)  advertising, trade associations, and political contributions. 
D)  trade associations, lobbyists, and letters to the editors of newspapers. 
E)  lobbyists, political contributions, and advertising.

Question 2

Which of the following is correct with respect to input and output markets?

Accepted Answer

A)  In the input market, firms supply goods and services in response to demand on the part of households. 
B)  In the output market, firms buy resources from households, which then supply those resources. 
C)  Consumer buying patterns provide information that helps companies decide which products to produce. 
D)  Consumers are restricted in the companies they can work for. 
E)  Input and output markets exist only in communist countries. 
A)  In the input market, firms supply goods and services in response to demand on the part of households. 
B)  In the output market, firms buy resources from households, which then supply those resources. 
C)  Consumer buying patterns provide information that helps companies decide which products to produce. 
D)  Consumers are restricted in the companies they can work for. 
E)  Input and output markets exist only in communist countries.

Question 3

In a country operating under a capitalistic, market-based economy, what four elements must be present in the economic system to make it work?

Accepted Answer

The required element

Question 4

In the market for breakfast cereals, a few large producers, such as General Mills, Post, Quaker, and Kellogg, dominate the market. This best describes which of the following?

Accepted Answer

A)  Perfect competition 
B)  Monopolistic competition 
C)  Limited cartel 
D)  Monopoly 
E)  Oligopoly 
A)  Perfect competition 
B)  Monopolistic competition 
C)  Limited cartel 
D)  Monopoly 
E)  Oligopoly

Question 5

In a command economy, the central government

Accepted Answer

A)  supports free enterprise in every way possible. 
B)  decides on the allocation of all or most factors of production. 
C)  encourages citizens to buy shares of stock in small companies rather than large ones. 
D)  keeps its control activities to a minimum so it doesn't interfere with business efficiency. 
E)  creates shortages on purpose in order to motivate businesses to be more efficient. 
A)  supports free enterprise in every way possible. 
B)  decides on the allocation of all or most factors of production. 
C)  encourages citizens to buy shares of stock in small companies rather than large ones. 
D)  keeps its control activities to a minimum so it doesn't interfere with business efficiency. 
E)  creates shortages on purpose in order to motivate businesses to be more efficient.

Question 6

Forbes magazine ranked 134 countries in terms of how attractive they were to do business in. Where did Canada rank?

Accepted Answer

A)  First 
B)  Second 
C)  Fifth 
D)  Twenty-fifth 
E)  Eighty-seventh 
A)  First 
B)  Second 
C)  Fifth 
D)  Twenty-fifth 
E)  Eighty-seventh

Question 7

Computers B Us is a manufacturer of customized microcomputers. They are able to set their prices higher than competitors because they can assemble a computer to a customer's exact specifications. Computers B Us is operating in a competitive environment of

Accepted Answer

A)  oligopolistic competition. 
B)  perfect competition. 
C)  monopolistic competition. 
D)  monopoly. 
E)  oligopoly. 
A)  oligopolistic competition. 
B)  perfect competition. 
C)  monopolistic competition. 
D)  monopoly. 
E)  oligopoly.

Question 8

An economic system that permits private ownership and control of small businesses but where the government controls large critical industries is known as

Accepted Answer

A)  a mixed economy. 
B)  socialism. 
C)  communism. 
D)  capitalism. 
E)  mercantilism. 
A)  a mixed economy. 
B)  socialism. 
C)  communism. 
D)  capitalism. 
E)  mercantilism.

Question 9

If the market for diamonds is at equilibrium and De Beers increased its prices, people would still demand the same quantity of diamonds.

Accepted Answer

A) True 
 B)False

Question 10

Explain the effects of monopolies on consumers and the economy.

Accepted Answer

If a company has a monopoly, it can harm

Question 11

The natural resources component of the factors of production includes the physical and mental capabilities of people in the work force.

Accepted Answer

A) True 
 B)False

Question 12

Sandy is responsible for monitoring compliance with regulations in her company. She needs to know that the important areas of government regulation are

Accepted Answer

A)  protecting competition and upholding environmental regulations. 
B)  protecting social goals, upholding environmental regulations, and protecting shareholder rights. 
C)  protecting competition, protecting consumers, and upholding environmental regulations. 
D)  protecting competition, protecting consumers, protecting social goals, and protecting the environment. 
E)  protecting shareholder rights, and following business law. 
A)  protecting competition and upholding environmental regulations. 
B)  protecting social goals, upholding environmental regulations, and protecting shareholder rights. 
C)  protecting competition, protecting consumers, and upholding environmental regulations. 
D)  protecting competition, protecting consumers, protecting social goals, and protecting the environment. 
E)  protecting shareholder rights, and following business law.

Question 13

Private enterprise requires the presence of four elements: (1) private property rights, (2) freedom of choice, (3) competition, and (4) no government control.

Accepted Answer

A) True 
 B)False

Question 14

Socialism is best described as

Accepted Answer

A)  a kind of command economy in which the government owns and operates all industries. 
B)  a kind of command economy in which the government owns and operates large critical industries. 
C)  an economy that is free from any regulation or planning. 
D)  a market economy in which markets decide what, when, and how much to produce. 
E)  an economic system with elements of a market economy, but not a planned economy. 
A)  a kind of command economy in which the government owns and operates all industries. 
B)  a kind of command economy in which the government owns and operates large critical industries. 
C)  an economy that is free from any regulation or planning. 
D)  a market economy in which markets decide what, when, and how much to produce. 
E)  an economic system with elements of a market economy, but not a planned economy.

Question 15

Which of the following is correct with respect to privatization and deregulation?

Accepted Answer

A)  Deregulation yields higher economic performance than privatization. 
B)  Privatization only works in socialist countries. 
C)  Privatization means converting companies that are in financial trouble into government-controlled organizations. 
D)  The trend toward both privatization and deregulation slowed somewhat after the financial crisis of 2008. 
E)  They mean essentially the same thing. 
A)  Deregulation yields higher economic performance than privatization. 
B)  Privatization only works in socialist countries. 
C)  Privatization means converting companies that are in financial trouble into government-controlled organizations. 
D)  The trend toward both privatization and deregulation slowed somewhat after the financial crisis of 2008. 
E)  They mean essentially the same thing.

Question 16

Which of the following is correct with regard to public-private partnerships?

Accepted Answer

A)  These partnerships have resulted in windfall profits for the businesses that have gotten involved in them. 
B)  These partnerships have resulted in bad public relations for the businesses that have gotten involved in them. 
C)  These partnerships have created a monopoly situation for the businesses that have gotten involved in them. 
D)  These partnerships cost more money than the traditional approach (where the government puts up the money and then hires contractors to do the necessary work). 
E)  These partnerships have generally been failures in terms of the quality of service provided. 
A)  These partnerships have resulted in windfall profits for the businesses that have gotten involved in them. 
B)  These partnerships have resulted in bad public relations for the businesses that have gotten involved in them. 
C)  These partnerships have created a monopoly situation for the businesses that have gotten involved in them. 
D)  These partnerships cost more money than the traditional approach (where the government puts up the money and then hires contractors to do the necessary work). 
E)  These partnerships have generally been failures in terms of the quality of service provided.

Question 17

Many organizations in Canada do not even try to make a profit.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is correct?

Accepted Answer

A)  Sweden is the best example of a country with a pure socialist economy. 
B)  A GlobeScan poll found that the greatest support for the free market economy was found among the citizens of India. 
C)  The United States is a pure capitalist economy. 
D)  Many countries in the world have a purely communist economy. 
E)  Under socialism, smaller businesses are often privately owned. 
A)  Sweden is the best example of a country with a pure socialist economy. 
B)  A GlobeScan poll found that the greatest support for the free market economy was found among the citizens of India. 
C)  The United States is a pure capitalist economy. 
D)  Many countries in the world have a purely communist economy. 
E)  Under socialism, smaller businesses are often privately owned.

Question 19

Kristine discovered that when she dropped the price of her paintings, more people were asking her to create paintings for them. Kristine is experiencing

Accepted Answer

A)  the law of supply and demand. 
B)  market price variations. 
C)  the law of supply. 
D)  economic justice. 
E)  the law of demand. 
A)  the law of supply and demand. 
B)  market price variations. 
C)  the law of supply. 
D)  economic justice. 
E)  the law of demand.

Question 20

The role of government in our economic system includes all of the following except

Accepted Answer

A)  customers. 
B)  innovators. 
C)  competitors. 
D)  regulators. 
E)  taxation agents. 
A)  customers. 
B)  innovators. 
C)  competitors. 
D)  regulators. 
E)  taxation agents.

The three main ways in which business can influence government policy are

Which of the following is correct with respect to input and output markets?

In a country operating under a capitalistic, market-based economy, what four elements must be present in the economic system to make it work?

In the market for breakfast cereals, a few large producers, such as General Mills, Post, Quaker, and Kellogg, dominate the market. This best describes which of the following?

In a command economy, the central government

Forbes magazine ranked 134 countries in terms of how attractive they were to do business in. Where did Canada rank?

Computers B Us is a manufacturer of customized microcomputers. They are able to set their prices higher than competitors because they can assemble a computer to a customer's exact specifications. Computers B Us is operating in a competitive environment of

An economic system that permits private ownership and control of small businesses but where the government controls large critical industries is known as

If the market for diamonds is at equilibrium and De Beers increased its prices, people would still demand the same quantity of diamonds.

Explain the effects of monopolies on consumers and the economy.

The natural resources component of the factors of production includes the physical and mental capabilities of people in the work force.

Sandy is responsible for monitoring compliance with regulations in her company. She needs to know that the important areas of government regulation are

Private enterprise requires the presence of four elements: (1) private property rights, (2) freedom of choice, (3) competition, and (4) no government control.

Socialism is best described as

Which of the following is correct with respect to privatization and deregulation?

Which of the following is correct with regard to public-private partnerships?

Many organizations in Canada do not even try to make a profit.

Which of the following statements is correct?

Kristine discovered that when she dropped the price of her paintings, more people were asking her to create paintings for them. Kristine is experiencing

The role of government in our economic system includes all of the following except

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 1: Understanding the Canadian Business System

The three main ways in which business can influence government policy are

Which of the following is correct with respect to input and output markets?

In a country operating under a capitalistic, market-based economy, what four elements must be present in the economic system to make it work?

In the market for breakfast cereals, a few large producers, such as General Mills, Post, Quaker, and Kellogg, dominate the market. This best describes which of the following?

In a command economy, the central government

Forbes magazine ranked 134 countries in terms of how attractive they were to do business in. Where did Canada rank?

Computers B Us is a manufacturer of customized microcomputers. They are able to set their prices higher than competitors because they can assemble a computer to a customer's exact specifications. Computers B Us is operating in a competitive environment of

An economic system that permits private ownership and control of small businesses but where the government controls large critical industries is known as

If the market for diamonds is at equilibrium and De Beers increased its prices, people would still demand the same quantity of diamonds.

Explain the effects of monopolies on consumers and the economy.

The natural resources component of the factors of production includes the physical and mental capabilities of people in the work force.

Sandy is responsible for monitoring compliance with regulations in her company. She needs to know that the important areas of government regulation are

Private enterprise requires the presence of four elements: (1) private property rights, (2) freedom of choice, (3) competition, and (4) no government control.

Socialism is best described as

Which of the following is correct with respect to privatization and deregulation?

Which of the following is correct with regard to public-private partnerships?

Many organizations in Canada do not even try to make a profit.

Which of the following statements is correct?

Kristine discovered that when she dropped the price of her paintings, more people were asking her to create paintings for them. Kristine is experiencing

The role of government in our economic system includes all of the following except

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters