Question 1

What are profits and why are they important in Canada's economic system?

Accepted Answer

Profits = revenues minus expenses
- They

Question 2

What a company chooses to produce will be affected by the profits it hopes to make.

Accepted Answer

A) True 
 B)False

Question 3

What provides the motivation for an entrepreneur to operate his or her business efficiently?

Accepted Answer

A)  The right to vote 
B)  Private property rights 
C)  Competition 
D)  Privatization 
E)  Freedom of choice 
A)  The right to vote 
B)  Private property rights 
C)  Competition 
D)  Privatization 
E)  Freedom of choice

Question 4

Explain the roles of demand and supply in a market economy.

Accepted Answer

On all economic levels of a market econo

Question 5

What is the law of demand? What is the law of supply?

Accepted Answer

The law of demand states that buyers wil

Question 6

What are profits?

Accepted Answer

A)  Total money taken in by a corporation 
B)  Increases in income from year to year 
C)  Increases in a corporation's stock price 
D)  Revenue generated by goods and services 
E)  Difference between revenues and expenses 
A)  Total money taken in by a corporation 
B)  Increases in income from year to year 
C)  Increases in a corporation's stock price 
D)  Revenue generated by goods and services 
E)  Difference between revenues and expenses

Question 7

The term "business" typically includes large organizations, such as General Motors), which seek a profit, but does not include individuals who are self-employed, e.g., a carpenter, or a beautician who operates a shop in her home.

Accepted Answer

A) True 
 B)False

Question 8

"Embrace the opportunities and accept the risks" is a phrase that best characterizes the ________ attitude.

Accepted Answer

A)  entrepreneurial 
B)  capitalist 
C)  communist 
D)  socialist 
E)  managerial 
A)  entrepreneurial 
B)  capitalist 
C)  communist 
D)  socialist 
E)  managerial

Question 9

In which economic system will profit motivate entrepreneurs to use resources efficiently and to produce goods that consumers want?

Accepted Answer

A)  A centrally planned economy 
B)  Communism 
C)  A market economy 
D)  Socialism 
E)  A barter economy 
A)  A centrally planned economy 
B)  Communism 
C)  A market economy 
D)  Socialism 
E)  A barter economy

Question 10

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service willing to be produced is known as the

Accepted Answer

A)  equilibrium curve. 
B)  demand curve. 
C)  balance curve. 
D)  variable price curve. 
E)  supply curve. 
A)  equilibrium curve. 
B)  demand curve. 
C)  balance curve. 
D)  variable price curve. 
E)  supply curve.

Question 11

What four areas are the focus of the government's role as a "regulator"?

Accepted Answer

The four areas are promoting competition

Question 12

What is a mixed market economy?

Accepted Answer

A mixed market economy is one that has f

Question 13

McDonnell Douglas, a manufacturer of large commercial aircraft, raises its prices of aircraft by 10 percent. Boeing, another manufacturer of large commercial aircraft, raises its prices by 9 percent. Airbus, a third manufacturer of large commercial aircraft, follows with an increase of 9.5 percent. Each of these companies is practicing a type of pricing strategy characteristic of

Accepted Answer

A)  controlled competition. 
B)  monopolistic competition. 
C)  an oligopoly. 
D)  perfect competition. 
E)  a monopoly. 
A)  controlled competition. 
B)  monopolistic competition. 
C)  an oligopoly. 
D)  perfect competition. 
E)  a monopoly.

Question 14

Which of the following is correct with regard to the Competition Act?

Accepted Answer

A)  A company can cut prices in one region of Canada while selling at a higher price everywhere else even if this substantially lessens competition. 
B)  Businesses are generally satisfied that the Competition Bureau moves fairly quickly in approving or denying merger plans. 
C)  Pyramid selling is permitted as long as participant know they are involved in a pyramid selling scheme and they know they are not allowed to make windfall profits from the scheme. 
D)  The mere existence of a conspiracy is assumed to be proof that competition has been reduced. 
E)  All of these are correct. 
A)  A company can cut prices in one region of Canada while selling at a higher price everywhere else even if this substantially lessens competition. 
B)  Businesses are generally satisfied that the Competition Bureau moves fairly quickly in approving or denying merger plans. 
C)  Pyramid selling is permitted as long as participant know they are involved in a pyramid selling scheme and they know they are not allowed to make windfall profits from the scheme. 
D)  The mere existence of a conspiracy is assumed to be proof that competition has been reduced. 
E)  All of these are correct.

Question 15

In the supply management system, producers are allowed to produce more than their allowed quota if prices drop below a certain specified level.

Accepted Answer

A) True 
 B)False

Question 16

What are the factors of production? Explain each one.

Accepted Answer

- Natural resources: items used in the p

Question 17

What is socialism?

Accepted Answer

Socialism is a less extensive command sy

Question 18

Profit is computed by subtracting depreciation expenses and income taxes from total business revenue.

Accepted Answer

A) True 
 B)False

Question 19

The point on a demand and supply schedule where supply and demand are equal is known as the break-even point.

Accepted Answer

A) True 
 B)False

Question 20

What does the supply curve show?

Accepted Answer

The supply curve sho

What are profits and why are they important in Canada's economic system?

What a company chooses to produce will be affected by the profits it hopes to make.

What provides the motivation for an entrepreneur to operate his or her business efficiently?

Explain the roles of demand and supply in a market economy.

What is the law of demand? What is the law of supply?

What are profits?

The term "business" typically includes large organizations, such as General Motors), which seek a profit, but does not include individuals who are self-employed, e.g., a carpenter, or a beautician who operates a shop in her home.

"Embrace the opportunities and accept the risks" is a phrase that best characterizes the ________ attitude.

In which economic system will profit motivate entrepreneurs to use resources efficiently and to produce goods that consumers want?

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service willing to be produced is known as the

What four areas are the focus of the government's role as a "regulator"?

What is a mixed market economy?

Which of the following is correct with regard to the Competition Act?

In the supply management system, producers are allowed to produce more than their allowed quota if prices drop below a certain specified level.

What are the factors of production? Explain each one.

What is socialism?

Profit is computed by subtracting depreciation expenses and income taxes from total business revenue.

The point on a demand and supply schedule where supply and demand are equal is known as the break-even point.

What does the supply curve show?

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

What are profits and why are they important in Canada's economic system?

What a company chooses to produce will be affected by the profits it hopes to make.

What provides the motivation for an entrepreneur to operate his or her business efficiently?

Explain the roles of demand and supply in a market economy.

What is the law of demand? What is the law of supply?

What are profits?

The term "business" typically includes large organizations, such as General Motors), which seek a profit, but does not include individuals who are self-employed, e.g., a carpenter, or a beautician who operates a shop in her home.

"Embrace the opportunities and accept the risks" is a phrase that best characterizes the ________ attitude.

In which economic system will profit motivate entrepreneurs to use resources efficiently and to produce goods that consumers want?

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service willing to be produced is known as the

What four areas are the focus of the government's role as a "regulator"?

What is a mixed market economy?

Which of the following is correct with regard to the Competition Act?

In the supply management system, producers are allowed to produce more than their allowed quota if prices drop below a certain specified level.

What are the factors of production? Explain each one.

What is socialism?

Profit is computed by subtracting depreciation expenses and income taxes from total business revenue.

The point on a demand and supply schedule where supply and demand are equal is known as the break-even point.

What does the supply curve show?

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