Question 1

Discuss the government's role as: (a) a competitor, (b) a regulator, (c) a taxation agent, and (d) a provider of incentive programs.

Accepted Answer

- Competitor: the government competes wi

Question 2

Discuss the reasons why the Canadian government permits certain "natural" monopolies while forbidding attempts by private sector business firms to develop a monopoly. Are natural monopolies a good thing, or should all monopolies be banned?

Accepted Answer

So-called "natural" monopolies are indus

Question 3

Which one of the following is the best example of perfect competition?

Accepted Answer

A)  Agricultural industry 
B)  Automobile industry 
C)  Utility industry 
D)  Clothing industry 
E)  Soft drink industry 
A)  Agricultural industry 
B)  Automobile industry 
C)  Utility industry 
D)  Clothing industry 
E)  Soft drink industry

Question 4

Bob owns the St. Paul Street one-stop convenience store, 1 of 70 convenience stores in his region. Which degree of competition is Bob facing?

Accepted Answer

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

Question 5

Information resources are not needed by those businesses that produce only physical goods.

Accepted Answer

A) True 
 B)False

Question 6

A 2011 study by Forbes magazine ranked Canada as the world's top country in which to do business out of 134 countries.

Accepted Answer

A) True 
 B)False

Question 7

A GlobeScan poll showed that the highest support for the free market economy was found in

Accepted Answer

A)  Japan. 
B)  China. 
C)  the United States. 
D)  Canada. 
E)  Brazil. 
A)  Japan. 
B)  China. 
C)  the United States. 
D)  Canada. 
E)  Brazil.

Question 8

The privatization of postal services in several countries is consistent with the argument that there is no such thing as a "natural" monopoly.

Accepted Answer

A) True 
 B)False

Question 9

Workers in socialist countries are usually allowed to choose their occupations, but a large proportion generally work for the government.

Accepted Answer

A) True 
 B)False

Question 10

Business principles are helpful to non-profit organizations as they try to achieve their service goals.

Accepted Answer

A) True 
 B)False

Question 11

Canada is home to a(n) ________ economy.

Accepted Answer

A)  mixed market 
B)  oligopolistic 
C)  socialist 
D)  market 
E)  command 
A)  mixed market 
B)  oligopolistic 
C)  socialist 
D)  market 
E)  command

Question 12

AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable." Another manager at AB Distributor, Shawna, suggests that if the company's revenue had not increased, it would not have been able to increase its profits. Which of the following points out a flaw in Shawna's reasoning?

Accepted Answer

A)  Other similar companies have increased their profits too. 
B)  Revenue is not always relevant to figuring profitability. 
C)  Profitability is not the only objective of the company. 
D)  The company can increase revenue only by cutting costs. 
E)  It is possible to increase profits by lowering costs. 
A)  Other similar companies have increased their profits too. 
B)  Revenue is not always relevant to figuring profitability. 
C)  Profitability is not the only objective of the company. 
D)  The company can increase revenue only by cutting costs. 
E)  It is possible to increase profits by lowering costs.

Question 13

AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable." Which of the following points out a flaw in Jonathan's reasoning?

Accepted Answer

A)  Information about the company's expenses is necessary to tell whether it is profitable. 
B)  AB Distributor may have lost money the previous year. 
C)  Most of AB Distributor's employees are relatively new. 
D)  Not all of the revenue may contribute toward profits. 
E)  Many of AB Distributor's competitors may not be doing as well. 
A)  Information about the company's expenses is necessary to tell whether it is profitable. 
B)  AB Distributor may have lost money the previous year. 
C)  Most of AB Distributor's employees are relatively new. 
D)  Not all of the revenue may contribute toward profits. 
E)  Many of AB Distributor's competitors may not be doing as well.

Question 14

Many companies start as niche operations in order to get a foothold against larger competitors and then grow into broader competitors. Enterprise Rent-A-Car began by building a network of neighborhood offices rather than competing with Hertz and Avis in airport locations. Enterprise is now a large car rental company. Which of the following is best supported by the statements above?

Accepted Answer

A)  The best path to long-term growth is to avoid confrontation with larger competitors for as long as possible. 
B)  It is generally better to confront one established competitor at a time rather than many at once. 
C)  Even when competing in a niche, a company should act in every respect as if it is targeting every market segment. 
D)  The car rental industry is the best example for niche companies to consider when evaluating how to grow into prominence. 
E)  A company's initial goals do not place limits on its long-term success. 
A)  The best path to long-term growth is to avoid confrontation with larger competitors for as long as possible. 
B)  It is generally better to confront one established competitor at a time rather than many at once. 
C)  Even when competing in a niche, a company should act in every respect as if it is targeting every market segment. 
D)  The car rental industry is the best example for niche companies to consider when evaluating how to grow into prominence. 
E)  A company's initial goals do not place limits on its long-term success.

Question 15

Explain the role of private enterprise in a market economy. Include an explanation of the elements that comprise free enterprise.

Accepted Answer

Market economies rely on a private enter

Question 16

Which of the following is correct with respect to privatization?

Accepted Answer

A)  The TNT Post Group in the Netherlands has been converted from private to government ownership. 
B)  Privatization is most likely to occur in communist countries. 
C)  Privatization has been a general trend during the last decade, but some countries are going in the opposite direction and pursuing nationalization instead. 
D)  Several companies have been nationalized in Canada in recent years. 
E)  The recession of 2008 accelerated the trend toward privatization. 
A)  The TNT Post Group in the Netherlands has been converted from private to government ownership. 
B)  Privatization is most likely to occur in communist countries. 
C)  Privatization has been a general trend during the last decade, but some countries are going in the opposite direction and pursuing nationalization instead. 
D)  Several companies have been nationalized in Canada in recent years. 
E)  The recession of 2008 accelerated the trend toward privatization.

Question 17

Which of the following is correct with respect to the issue of government taxation?

Accepted Answer

A)  Progressive revenue taxes are harder on low-income people than on high-income people. 
B)  Revenue taxes are designed primarily to encourage people to buy certain kinds of goods and avoid buying other kinds. 
C)  Restrictive taxes prevent businesses from expanding. 
D)  Regressive revenue taxes are levied at the same rate regardless of a person's income. 
E)  All of the statements are correct. 
A)  Progressive revenue taxes are harder on low-income people than on high-income people. 
B)  Revenue taxes are designed primarily to encourage people to buy certain kinds of goods and avoid buying other kinds. 
C)  Restrictive taxes prevent businesses from expanding. 
D)  Regressive revenue taxes are levied at the same rate regardless of a person's income. 
E)  All of the statements are correct.

Question 18

A demand curve shows the amount of goods and services a producer will create at different prices.

Accepted Answer

A) True 
 B)False

Question 19

What is "supply management"?

Accepted Answer

A)  A system that ensures there are no shortages in consumer products and service 
B)  A system that ensures companies producing products like automobiles do not artificially restrict supply in order to drive up the price of their products 
C)  A system that establishes domestic production quotas for commodities like dairy products, maple syrup, eggs, chickens, and turkeys 
D)  A system that is designed to create perfect competition in certain industries 
A)  A system that ensures there are no shortages in consumer products and service 
B)  A system that ensures companies producing products like automobiles do not artificially restrict supply in order to drive up the price of their products 
C)  A system that establishes domestic production quotas for commodities like dairy products, maple syrup, eggs, chickens, and turkeys 
D)  A system that is designed to create perfect competition in certain industries

Question 20

There are three major types of economic systems in existence. Identify and briefly describe them.

Accepted Answer

- Command economies: a type in which the

Discuss the government's role as: (a) a competitor, (b) a regulator, (c) a taxation agent, and (d) a provider of incentive programs.

Discuss the reasons why the Canadian government permits certain "natural" monopolies while forbidding attempts by private sector business firms to develop a monopoly. Are natural monopolies a good thing, or should all monopolies be banned?

Which one of the following is the best example of perfect competition?

Bob owns the St. Paul Street one-stop convenience store, 1 of 70 convenience stores in his region. Which degree of competition is Bob facing?

Information resources are not needed by those businesses that produce only physical goods.

A 2011 study by Forbes magazine ranked Canada as the world's top country in which to do business out of 134 countries.

A GlobeScan poll showed that the highest support for the free market economy was found in

The privatization of postal services in several countries is consistent with the argument that there is no such thing as a "natural" monopoly.

Workers in socialist countries are usually allowed to choose their occupations, but a large proportion generally work for the government.

Business principles are helpful to non-profit organizations as they try to achieve their service goals.

Canada is home to a(n) ________ economy.

Explain the role of private enterprise in a market economy. Include an explanation of the elements that comprise free enterprise.

Which of the following is correct with respect to privatization?

Which of the following is correct with respect to the issue of government taxation?

A demand curve shows the amount of goods and services a producer will create at different prices.

What is "supply management"?

There are three major types of economic systems in existence. Identify and briefly describe them.

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

Discuss the government's role as: (a) a competitor, (b) a regulator, (c) a taxation agent, and (d) a provider of incentive programs.

Discuss the reasons why the Canadian government permits certain "natural" monopolies while forbidding attempts by private sector business firms to develop a monopoly. Are natural monopolies a good thing, or should all monopolies be banned?

Which one of the following is the best example of perfect competition?

Bob owns the St. Paul Street one-stop convenience store, 1 of 70 convenience stores in his region. Which degree of competition is Bob facing?

Information resources are not needed by those businesses that produce only physical goods.

A 2011 study by Forbes magazine ranked Canada as the world's top country in which to do business out of 134 countries.

A GlobeScan poll showed that the highest support for the free market economy was found in

The privatization of postal services in several countries is consistent with the argument that there is no such thing as a "natural" monopoly.

Workers in socialist countries are usually allowed to choose their occupations, but a large proportion generally work for the government.

Business principles are helpful to non-profit organizations as they try to achieve their service goals.

Canada is home to a(n) ________ economy.

Explain the role of private enterprise in a market economy. Include an explanation of the elements that comprise free enterprise.

Which of the following is correct with respect to privatization?

Which of the following is correct with respect to the issue of government taxation?

A demand curve shows the amount of goods and services a producer will create at different prices.

What is "supply management"?

There are three major types of economic systems in existence. Identify and briefly describe them.

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