Question 1

Command economies are most likely to be found in

Accepted Answer

A)  the newly emerging economies of southeast Asia. 
B)  communist and socialist nations. 
C)  western European countries. 
D)  Japan. 
E)  Canada and the United States. 
A)  the newly emerging economies of southeast Asia. 
B)  communist and socialist nations. 
C)  western European countries. 
D)  Japan. 
E)  Canada and the United States.

Question 2

What does the demand curve show?

Accepted Answer

The demand curve sho

Question 3

Not-for-profit organizations

Accepted Answer

A)  are content with small profits, whereas business firms want large profits. 
B)  are more important than business firms in the Canadian economy. 
C)  use the funds from government grants or from the sale of goods or services to provide service to the public. 
D)  sell only services, not goods. 
E)  are not allowed to operate in the manufacturing sector. 
A)  are content with small profits, whereas business firms want large profits. 
B)  are more important than business firms in the Canadian economy. 
C)  use the funds from government grants or from the sale of goods or services to provide service to the public. 
D)  sell only services, not goods. 
E)  are not allowed to operate in the manufacturing sector.

Question 4

The key difference between economic systems is the different ways in which they manage

Accepted Answer

A)  the factors of production. 
B)  the transportation of goods within their borders. 
C)  government rules and regulations. 
D)  the payment of workers. 
E)  the degree of competition that is allowed in various domestic industries. 
A)  the factors of production. 
B)  the transportation of goods within their borders. 
C)  government rules and regulations. 
D)  the payment of workers. 
E)  the degree of competition that is allowed in various domestic industries.

Question 5

Socialist economies may stifle economic growth because

Accepted Answer

A)  management positions in state-controlled industries are often filled on the basis of political considerations. 
B)  they have too few regulations concerning product safety. 
C)  they are found in countries where people don't have many skills. 
D)  they are usually found in countries with cold climates. 
E)  they encourage excessive unionization of employees. 
A)  management positions in state-controlled industries are often filled on the basis of political considerations. 
B)  they have too few regulations concerning product safety. 
C)  they are found in countries where people don't have many skills. 
D)  they are usually found in countries with cold climates. 
E)  they encourage excessive unionization of employees.

Question 6

The law of supply states that

Accepted Answer

A)  buyers will purchase more of a product as the price falls. 
B)  demand and supply meet at an equilibrium point. 
C)  producers will offer more of a product as the price rises. 
D)  producers will offer more of a product as the price falls. 
E)  buyers will purchase more of a product as the price rises. 
A)  buyers will purchase more of a product as the price falls. 
B)  demand and supply meet at an equilibrium point. 
C)  producers will offer more of a product as the price rises. 
D)  producers will offer more of a product as the price falls. 
E)  buyers will purchase more of a product as the price rises.

Question 7

When individual firms are small and the number of firms is large, this describes which degree of competition?

Accepted Answer

A)  Selective competition 
B)  Monopolistic competition 
C)  Monopoly 
D)  Perfect competition 
E)  Oligopoly 
A)  Selective competition 
B)  Monopolistic competition 
C)  Monopoly 
D)  Perfect competition 
E)  Oligopoly

Question 8

Which of the following is correct with respect to the factors of production?

Accepted Answer

A)  The "labour" factor recognizes that it is importance to have labour unions to offset the power of management. 
B)  "Capital" is a more important factor than "labour." 
C)  As the Canadian economy has become larger and more complex, the importance of entrepreneurs has declined. 
D)  Unlike land, labour, and capital, information can be shared without being diminished. 
E)  Human resources is an example of the "natural resources" factor. 
A)  The "labour" factor recognizes that it is importance to have labour unions to offset the power of management. 
B)  "Capital" is a more important factor than "labour." 
C)  As the Canadian economy has become larger and more complex, the importance of entrepreneurs has declined. 
D)  Unlike land, labour, and capital, information can be shared without being diminished. 
E)  Human resources is an example of the "natural resources" factor.

Question 9

What is "supply"?

Accepted Answer

A)  The idea that sellers will sell more of a product as the price increases 
B)  The price and quantity of a product at which the quantity demanded is equal to the quantity supplied 
C)  The idea that buyers will want less of a product as the price increases 
D)  The willingness and ability of producers to offer a good or service for sale 
E)  None of these 
A)  The idea that sellers will sell more of a product as the price increases 
B)  The price and quantity of a product at which the quantity demanded is equal to the quantity supplied 
C)  The idea that buyers will want less of a product as the price increases 
D)  The willingness and ability of producers to offer a good or service for sale 
E)  None of these

Question 10

Private enterprise requires which four elements to function effectively?

Accepted Answer

A)  Communism, capitalism, socialism, and privatization 
B)  The right to product safety, consumer choice, freedom of information, and no government intervention in business 
C)  Land, labour, capital, and entrepreneurship 
D)  Supply, demand, equilibrium, and monopoly 
E)  Private property rights, freedom of choice, profits, and competition 
A)  Communism, capitalism, socialism, and privatization 
B)  The right to product safety, consumer choice, freedom of information, and no government intervention in business 
C)  Land, labour, capital, and entrepreneurship 
D)  Supply, demand, equilibrium, and monopoly 
E)  Private property rights, freedom of choice, profits, and competition

Question 11

List one major benefit and one major drawback of each type of economic system.

Accepted Answer

A market economy is efficient and provid

Question 12

What is the difference between deregulation and privatization?

Accepted Answer

Deregulation means a reduction in the nu

Question 13

In economic terms, a "market" refers to a specific place (e.g., a supermarket).

Accepted Answer

A) True 
 B)False

Question 14

A demand and supply schedule is derived from market research and other systematic studies of the market.

Accepted Answer

A) True 
 B)False

Question 15

Anon Corporation is a manufacturer of Widgets. Faced with increasing input material costs, the company is contemplating a price increase in the range of 15-20 percent. There are significant disagreements among senior personnel in the company about this move. Which of the following, if true, would weaken the argument for a price increase?

Accepted Answer

A)  The input costs of raw materials are expected to increase further in the coming months. 
B)  Customers are loyal to the brand mainly because they believe in the quality of ingredients used. 
C)  Anon's competitors have announced an increase in prices. 
D)  One of Anon's major competitors has just declared bankruptcy. 
E)  Market research done by the company reveals that demand for Widgets is readily affected by the price. 
A)  The input costs of raw materials are expected to increase further in the coming months. 
B)  Customers are loyal to the brand mainly because they believe in the quality of ingredients used. 
C)  Anon's competitors have announced an increase in prices. 
D)  One of Anon's major competitors has just declared bankruptcy. 
E)  Market research done by the company reveals that demand for Widgets is readily affected by the price.

Question 16

An exchange process between buyers and sellers of a particular good or service is known as

Accepted Answer

A)  a market. 
B)  economic trade. 
C)  mercantilism. 
D)  supply utility. 
E)  bartering. 
A)  a market. 
B)  economic trade. 
C)  mercantilism. 
D)  supply utility. 
E)  bartering.

Question 17

Anon Corporation is a manufacturer of Widgets. Faced with increasing input material costs, the company is contemplating a price increase in the range of 15-20 percent. There are significant disagreements among senior personnel in the company about this move. Which of the following, if true, would strengthen the argument in favor of a price increase?

Accepted Answer

A)  Substitutes for Widgets are available in the market. 
B)  The price of materials consumed along with Widgets has gone up. 
C)  A change in the environment is likely to stimulate overall demand for Widgets. 
D)  Competitors have announced that they intend to keep prices at current levels. 
E)  Relaxation of import restrictions would lead to foreign competitors flooding the market. 
A)  Substitutes for Widgets are available in the market. 
B)  The price of materials consumed along with Widgets has gone up. 
C)  A change in the environment is likely to stimulate overall demand for Widgets. 
D)  Competitors have announced that they intend to keep prices at current levels. 
E)  Relaxation of import restrictions would lead to foreign competitors flooding the market.

Question 18

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

Accepted Answer

Businesses are organizations that provid

Question 19

With regard to factors of production, it is correct to say that

Accepted Answer

A)  natural resources are pretty evenly distributed across different countries. 
B)  the factors of production are managed differently in different countries. 
C)  capital is the most "unfair" factor of production. 
D)  entrepreneurs are a factor of production only in certain countries (e.g., China). 
E)  technology is the most important factor of production. 
A)  natural resources are pretty evenly distributed across different countries. 
B)  the factors of production are managed differently in different countries. 
C)  capital is the most "unfair" factor of production. 
D)  entrepreneurs are a factor of production only in certain countries (e.g., China). 
E)  technology is the most important factor of production.

Question 20

A surplus in the market is good news for the firm selling a product or service because there are additional customers still trying to purchase the product.

Accepted Answer

A) True 
 B)False

Command economies are most likely to be found in

What does the demand curve show?

Not-for-profit organizations

The key difference between economic systems is the different ways in which they manage

Socialist economies may stifle economic growth because

The law of supply states that

When individual firms are small and the number of firms is large, this describes which degree of competition?

Which of the following is correct with respect to the factors of production?

What is "supply"?

Private enterprise requires which four elements to function effectively?

List one major benefit and one major drawback of each type of economic system.

What is the difference between deregulation and privatization?

In economic terms, a "market" refers to a specific place (e.g., a supermarket).

A demand and supply schedule is derived from market research and other systematic studies of the market.

An exchange process between buyers and sellers of a particular good or service is known as

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

With regard to factors of production, it is correct to say that

A surplus in the market is good news for the firm selling a product or service because there are additional customers still trying to purchase the product.

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

Command economies are most likely to be found in

What does the demand curve show?

Not-for-profit organizations

The key difference between economic systems is the different ways in which they manage

Socialist economies may stifle economic growth because

The law of supply states that

When individual firms are small and the number of firms is large, this describes which degree of competition?

Which of the following is correct with respect to the factors of production?

What is "supply"?

Private enterprise requires which four elements to function effectively?

List one major benefit and one major drawback of each type of economic system.

What is the difference between deregulation and privatization?

In economic terms, a "market" refers to a specific place (e.g., a supermarket).

A demand and supply schedule is derived from market research and other systematic studies of the market.

An exchange process between buyers and sellers of a particular good or service is known as

Explain the role of both profit-seeking businesses and non-profit organizations in the overall "meaning of business."

With regard to factors of production, it is correct to say that

A surplus in the market is good news for the firm selling a product or service because there are additional customers still trying to purchase the product.

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