Exam 1: Understanding the Canadian Business System

Ian, the owner of 5-for-1 Pizza, has noticed that when he increases the price of his pizzas by $2.00, the number of pizzas that he sells drops by 30 percent. Ian has discovered

When there are a handful of very large sellers, market entry is difficult, and a company can have a major impact on the product price, this is a situation known as

Which of the following is correct with regard to the issue of different economic systems?

In terms of factors of production, Imperial Oil's crude oil reserves are an example of ________, while market forecasts are an example of ________.

In 2014, Netflix was told to submit information about its Canadian subscribers to the CRTC, but it refused to do so, arguing that the CRTC didn't have any jurisdiction over online media. When the CRTC simply dropped the issue, this showed that

A business is an organization that seeks to earn profits by providing one or more of the factors of production to consumers.

Coke and Pepsi represent oligopolistic competition.

5-for-1 Pizza is operating at the point where the supply curve intersects the demand curve. If the owner decides to increase the price and not change the production level, what will result?

Stanislav lives in a country where all the factors of production are owned by the government. The economic system in his country is most likely

Vermont Computers is a manufacturer of computers on the large, but isolated, island nation of New Vermont. Although imports are extremely limited, but there are a handful of computer manufacturers in addition to Vermont Computers. While the government provides some services, such as public education and a well-maintained road system, almost all businesses are privately owned. Home ownership is unusually high, with 80 percent of all families owning their own home. Vermont Computers is selling a state-of-the-art desktop computer system for 1,299 veros (the local currency). At this price, the company is able to fill all orders, but they have no waiting list. What type of economic system exists in New Vermont? Support your conclusions.

In the input market, firms supply goods and services in response to demand on the part of households.

What is likely to happen when demand for a commodity is high?

What problems are evident in Canada's supply management system?

Communism and socialism are both types of command economies.

What is the difference between a command economy and a market economy?

Which of the following is correct with regard to the communist economic system?

Incentive programs are designed to

The market research department of BSX Corp. estimated that 5000 CDs would be purchased at a price of $8.00 each. As it turned out, the demand was 6000. The company is in a(n) ________ condition.

The GST is considered a regressive tax because

A major drawback to communism as an economic system is that