Question 1

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called

Accepted Answer

A)  a centrally planned economy. 
B)  privatization. 
C)  a market economy. 
D)  communism. 
E)  socialism. 
A)  a centrally planned economy. 
B)  privatization. 
C)  a market economy. 
D)  communism. 
E)  socialism.

Question 2

Market economies are considered beneficial for small businesses because they

Accepted Answer

A)  provide small businesses with lots of government assistance and protection. 
B)  provide a central economic plan within which small businesses can easily prosper. 
C)  protect small businesses from the power of large corporations. 
D)  allow small businesses to fail. 
E)  allow the business to do whatever it wants as long as it doesn't break the law. 
A)  provide small businesses with lots of government assistance and protection. 
B)  provide a central economic plan within which small businesses can easily prosper. 
C)  protect small businesses from the power of large corporations. 
D)  allow small businesses to fail. 
E)  allow the business to do whatever it wants as long as it doesn't break the law.

Question 3

How does a planned economy differ from a market economy?

Accepted Answer

A planned economy relies on a centralize

Question 4

Gasoline stations are an example of a type of business involved in perfect competition.

Accepted Answer

A) True 
 B)False

Question 5

Describe monopolistic competition.

Accepted Answer

In a market characterized by monopolisti

Question 6

The federal Lobbying Act requires lobbyists to

Accepted Answer

A)  register with the Department of Consumer and Commercial Relations. 
B)  contribute a minimum of $10 000 to political campaigns. 
C)  attend at least two sessions in the House of Commons each year. 
D)  report on their communications with designated public office holders. 
E)  meet with members of Parliament on a regular basis. 
A)  register with the Department of Consumer and Commercial Relations. 
B)  contribute a minimum of $10 000 to political campaigns. 
C)  attend at least two sessions in the House of Commons each year. 
D)  report on their communications with designated public office holders. 
E)  meet with members of Parliament on a regular basis.

Question 7

One outcome of competition is that business firms

Accepted Answer

A)  usually develop a monopoly. 
B)  can ignore "price wars." 
C)  have unrestricted access to natural resources. 
D)  must operate efficiently. 
E)  reduce their need for expansion capital. 
A)  usually develop a monopoly. 
B)  can ignore "price wars." 
C)  have unrestricted access to natural resources. 
D)  must operate efficiently. 
E)  reduce their need for expansion capital.

Question 8

Explain what happens when the demand curve intersects with the supply curve.

Accepted Answer

At this intersection, we have

Question 9

Madeline is responsible for answering questions about what her company can do under the Competition Act. Which one of the following is allowed under the Act?

Accepted Answer

A)  The return of surpluses by credit unions to their members 
B)  Pricing products unreasonably low to eliminate competition 
C)  Forming a merger or a monopoly that lessens competition 
D)  Refusing to sell to a retailer who will, in turn, sell the product significantly below the suggested retail price 
E)  Giving selective allowances and rebates to cover advertising expenses to specific retailers 
A)  The return of surpluses by credit unions to their members 
B)  Pricing products unreasonably low to eliminate competition 
C)  Forming a merger or a monopoly that lessens competition 
D)  Refusing to sell to a retailer who will, in turn, sell the product significantly below the suggested retail price 
E)  Giving selective allowances and rebates to cover advertising expenses to specific retailers

Question 10

The term "demand" refers to

Accepted Answer

A)  the stock exchange. 
B)  the willingness and ability of buyers to purchase a product or service. 
C)  the willingness and ability of businesses to sell a product or service. 
D)  the willingness of buyers to accept high prices for high quality goods. 
E)  the willingness of government to sell goods and services. 
A)  the stock exchange. 
B)  the willingness and ability of buyers to purchase a product or service. 
C)  the willingness and ability of businesses to sell a product or service. 
D)  the willingness of buyers to accept high prices for high quality goods. 
E)  the willingness of government to sell goods and services.

Question 11

A demand and supply schedule

Accepted Answer

A)  allows assessment of the relationship between different levels of demand and supply at different prices. 
B)  describes the supply for a product. 
C)  describes the demand for a product. 
D)  is a formula by which one determines market equilibrium. 
E)  is the contractual agreement made between the buyer and seller. 
A)  allows assessment of the relationship between different levels of demand and supply at different prices. 
B)  describes the supply for a product. 
C)  describes the demand for a product. 
D)  is a formula by which one determines market equilibrium. 
E)  is the contractual agreement made between the buyer and seller.

Question 12

How are provincial universities in Canada different from business firms?

Accepted Answer

A)  They do not seek to make a profit. 
B)  They deal with people, not things. 
C)  Their organizational boundaries exclude business firms. 
D)  They do not produce goods or services. 
E)  They are more important to society than business firms. 
A)  They do not seek to make a profit. 
B)  They deal with people, not things. 
C)  Their organizational boundaries exclude business firms. 
D)  They do not produce goods or services. 
E)  They are more important to society than business firms.

Question 13

If the market for chocolate was at the equilibrium point and suddenly half of the chocolate in the world disappeared, what would be the immediate effect?

Accepted Answer

A)  The price would increase due to a shortage. 
B)  The price would decrease due to market equilibrium. 
C)  The price would increase due to a surplus. 
D)  The price would decrease due to a surplus. 
E)  There would be no change in either price or demand. 
A)  The price would increase due to a shortage. 
B)  The price would decrease due to market equilibrium. 
C)  The price would increase due to a surplus. 
D)  The price would decrease due to a surplus. 
E)  There would be no change in either price or demand.

Question 14

Something that would contribute directly to improving labour as a factor of production would be

Accepted Answer

A)  finding new oil reserves. 
B)  better education for more of the population. 
C)  increasing the purchasing power of employees. 
D)  programs designed to decrease unemployment. 
E)  finding more efficient ways to produce products. 
A)  finding new oil reserves. 
B)  better education for more of the population. 
C)  increasing the purchasing power of employees. 
D)  programs designed to decrease unemployment. 
E)  finding more efficient ways to produce products.

Question 15

Jose is from Guatemala. He is unsure about the nature of business in Canada. You point out that a typical business in Canada operates in fundamentally the same way as a business in

Accepted Answer

A)  the People's Republic of China. 
B)  Poland. 
C)  Peru. 
D)  England. 
E)  Japan. 
A)  the People's Republic of China. 
B)  Poland. 
C)  Peru. 
D)  England. 
E)  Japan.

Question 16

An economic system is

Accepted Answer

A)  an agreement between countries that deals with free trade. 
B)  the way in which a nation allocates its resources among its citizens. 
C)  a government decree that requires certain goods and services to be provided. 
D)  a long standing agreement between citizens and governments on how an economy is run. 
E)  a large government department that oversees how the economy is running. 
A)  an agreement between countries that deals with free trade. 
B)  the way in which a nation allocates its resources among its citizens. 
C)  a government decree that requires certain goods and services to be provided. 
D)  a long standing agreement between citizens and governments on how an economy is run. 
E)  a large government department that oversees how the economy is running.

Question 17

An outcome of competition is that business firms

Accepted Answer

A)  must operate efficiently. 
B)  have unrestricted access to natural resources. 
C)  reduce their need for expansion capital. 
D)  develop a monopoly. 
E)  can drop out of the pricing war unnoticed. 
A)  must operate efficiently. 
B)  have unrestricted access to natural resources. 
C)  reduce their need for expansion capital. 
D)  develop a monopoly. 
E)  can drop out of the pricing war unnoticed.

Question 18

What is a business?

Accepted Answer

A business is an org

Question 19

Retepson, Inc. has been in business for over 50 years. Retepson is best known for its "Guide to Colleges" line of books designed for high school students seeking admission to undergraduate programs. Basic information about a program is included in the books at no charge to the colleges, but colleges may purchase additional advertising space. Traditionally, Retepson has made money by selling advertising in its books and by charging students for the books themselves. Recently, however, profits are down, and the company is considering whether new developments in information technology will make its current business model obsolete. Which of the following questions is most relevant to Retepson's decisions with respect to the viability of its business model?

Accepted Answer

A)  Does Retepson currently have high market share or low market share in the industries in which it competes? 
B)  Has Retepson been profitable throughout its history? 
C)  Would the profit margins of any new businesses be higher or lower than current profit margins? 
D)  To what extent will college students be likely to choose books to get information about colleges? 
E)  Are people who bought Retepson books in the past likely to buy new editions of those books after they leave college? 
A)  Does Retepson currently have high market share or low market share in the industries in which it competes? 
B)  Has Retepson been profitable throughout its history? 
C)  Would the profit margins of any new businesses be higher or lower than current profit margins? 
D)  To what extent will college students be likely to choose books to get information about colleges? 
E)  Are people who bought Retepson books in the past likely to buy new editions of those books after they leave college?

Question 20

The equilibrium price is the profit-maximizing point at which the quantity demanded equals the quantity supplied.

Accepted Answer

A) True 
 B)False

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called

Market economies are considered beneficial for small businesses because they

How does a planned economy differ from a market economy?

Gasoline stations are an example of a type of business involved in perfect competition.

Describe monopolistic competition.

The federal Lobbying Act requires lobbyists to

One outcome of competition is that business firms

Explain what happens when the demand curve intersects with the supply curve.

Madeline is responsible for answering questions about what her company can do under the Competition Act. Which one of the following is allowed under the Act?

The term "demand" refers to

A demand and supply schedule

How are provincial universities in Canada different from business firms?

If the market for chocolate was at the equilibrium point and suddenly half of the chocolate in the world disappeared, what would be the immediate effect?

Something that would contribute directly to improving labour as a factor of production would be

Jose is from Guatemala. He is unsure about the nature of business in Canada. You point out that a typical business in Canada operates in fundamentally the same way as a business in

An economic system is

An outcome of competition is that business firms

What is a business?

The equilibrium price is the profit-maximizing point at which the quantity demanded equals the quantity supplied.

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 economic system in which producers and consumers control production and allocation decisions through supply and demand is called

Market economies are considered beneficial for small businesses because they

How does a planned economy differ from a market economy?

Gasoline stations are an example of a type of business involved in perfect competition.

Describe monopolistic competition.

The federal Lobbying Act requires lobbyists to

One outcome of competition is that business firms

Explain what happens when the demand curve intersects with the supply curve.

Madeline is responsible for answering questions about what her company can do under the Competition Act. Which one of the following is allowed under the Act?

The term "demand" refers to

A demand and supply schedule

How are provincial universities in Canada different from business firms?

If the market for chocolate was at the equilibrium point and suddenly half of the chocolate in the world disappeared, what would be the immediate effect?

Something that would contribute directly to improving labour as a factor of production would be

Jose is from Guatemala. He is unsure about the nature of business in Canada. You point out that a typical business in Canada operates in fundamentally the same way as a business in

An economic system is

An outcome of competition is that business firms

What is a business?

The equilibrium price is the profit-maximizing point at which the quantity demanded equals the quantity supplied.

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