Question 1

Market economies have all of the following characteristics, except that they

Accepted Answer

A)  allow businesses to charge whatever they want for their products and services. 
B)  encourage entrepreneurship by offering profits as an incentive. 
C)  require government intervention in order to prosper. 
D)  rely on markets, not governments, to decide what, when, and for whom to produce. 
E)  allow customers free choice. 
A)  allow businesses to charge whatever they want for their products and services. 
B)  encourage entrepreneurship by offering profits as an incentive. 
C)  require government intervention in order to prosper. 
D)  rely on markets, not governments, to decide what, when, and for whom to produce. 
E)  allow customers free choice.

Question 2

A business is an organization that seeks to earn profits by providing goods and services to customers.

Accepted Answer

A) True 
 B)False

Question 3

At the point where the supply curve crosses the demand curve on a graph

Accepted Answer

A)  no profits will be made. 
B)  all products offered for sale will be sold. 
C)  a shortage will result if the price is too low. 
D)  no sales will be made. 
E)  a surplus will result if the price is too low. 
A)  no profits will be made. 
B)  all products offered for sale will be sold. 
C)  a shortage will result if the price is too low. 
D)  no sales will be made. 
E)  a surplus will result if the price is too low.

Question 4

In a market with perfect competition

Accepted Answer

A)  price is set by supply and demand. 
B)  there are very few sellers. 
C)  products have very few similarities. 
D)  firms are relatively large. 
E)  the buyers and sellers do not know the price structure of the other party. 
A)  price is set by supply and demand. 
B)  there are very few sellers. 
C)  products have very few similarities. 
D)  firms are relatively large. 
E)  the buyers and sellers do not know the price structure of the other party.

Question 5

Brown Company wants to have an advantage over its competitors. To gain this advantage, it must develop a product that is either ________ or of ________ than that of the competition.

Accepted Answer

A)  lower priced; equal quality 
B)  lower priced; higher quality 
C)  priced the same; equal quality 
D)  priced the same; lower quality 
E)  higher priced; equal quality 
A)  lower priced; equal quality 
B)  lower priced; higher quality 
C)  priced the same; equal quality 
D)  priced the same; lower quality 
E)  higher priced; equal quality

Question 6

There are several different economic systems, but they all allocate resources in fundamentally the same way.

Accepted Answer

A) True 
 B)False

Question 7

Total Canadian government expenditures in 2013 were about $500 billion.

Accepted Answer

A) True 
 B)False

Question 8

Inaccuracies in forecasting an exact supply-demand schedule create surpluses and shortages. Describe what surpluses and shortages are using the concepts of supply and demand and indicate the probable impact of each upon price.

Accepted Answer

Surpluses occur when the quant

Question 9

Consider the following statement: "A nation's economic system is its system for allocating its resources among its citizens, both individuals and organizations." What are a nation's "resources," and what important role do they play in a nation's economic system?

Accepted Answer

A nation's resources, often referred to

Question 10

Individual ownership of property is a key element in

Accepted Answer

A)  the private enterprise system. 
B)  a planned economy. 
C)  socialism. 
D)  the factors of production. 
E)  communism. 
A)  the private enterprise system. 
B)  a planned economy. 
C)  socialism. 
D)  the factors of production. 
E)  communism.

Question 11

A GlobeScan poll of 20 000 people in 20 different countries showed that the highest support for capitalism was in the United States and the lowest level of support was in Cuba.

Accepted Answer

A) True 
 B)False

Question 12

________ must be present if companies are going to be motivated to offer consumers lower prices.

Accepted Answer

A)  Government regulations 
B)  Freedom of choice 
C)  Competition 
D)  Profits 
E)  Freedom of choice and competition 
A)  Government regulations 
B)  Freedom of choice 
C)  Competition 
D)  Profits 
E)  Freedom of choice and competition

Question 13

Suppose that several microelectronics manufacturers want to set up a trade association. They need to know that trade associations are allowed to do all of the following except

Accepted Answer

A)  allocate markets for their members. 
B)  influence the kind of legislation that is passed. 
C)  conduct training programs relevant to the industry. 
D)  arrange trade shows. 
E)  publish newsletters featuring articles on new products. 
A)  allocate markets for their members. 
B)  influence the kind of legislation that is passed. 
C)  conduct training programs relevant to the industry. 
D)  arrange trade shows. 
E)  publish newsletters featuring articles on new products.

Question 14

The price at which the quantity of goods demanded and the quantity of goods supplied are equal is referred to as

Accepted Answer

A)  the going rate. 
B)  the point-of-no-return price. 
C)  the market price. 
D)  the highest price. 
E)  the lowest price. 
A)  the going rate. 
B)  the point-of-no-return price. 
C)  the market price. 
D)  the highest price. 
E)  the lowest price.

Question 15

Communism and socialism are

Accepted Answer

A)  basic forms of market economies. 
B)  becoming more popular. 
C)  extreme opposites. 
D)  basic forms of command economies. 
E)  identical forms. 
A)  basic forms of market economies. 
B)  becoming more popular. 
C)  extreme opposites. 
D)  basic forms of command economies. 
E)  identical forms.

Question 16

The four degrees of competition include all of the following except

Accepted Answer

A)  pure competition. 
B)  monopolistic competition. 
C)  monopolies. 
D)  oligopolies. 
E)  pure monopolistic competition. 
A)  pure competition. 
B)  monopolistic competition. 
C)  monopolies. 
D)  oligopolies. 
E)  pure monopolistic competition.

Question 17

Which of the following is correct?

Accepted Answer

A)  In perfect competition, most firms in an industry are large. 
B)  In monopolistic competition, there are fewer sellers than in perfect competition but still many buyers. 
C)  All things considered, perfect competition is the ideal situation. 
D)  In order for an oligopoly to exist, there must not be more than three sellers. 
E)  In a monopoly, the firm that is the only supplier does not have to worry about how much consumer demand will fall as it raises its prices. 
A)  In perfect competition, most firms in an industry are large. 
B)  In monopolistic competition, there are fewer sellers than in perfect competition but still many buyers. 
C)  All things considered, perfect competition is the ideal situation. 
D)  In order for an oligopoly to exist, there must not be more than three sellers. 
E)  In a monopoly, the firm that is the only supplier does not have to worry about how much consumer demand will fall as it raises its prices.

Question 18

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

Accepted Answer

A command economy relies on a centralize

Question 19

The law of demand states that buyers will purchase more of a product as its price drops.

Accepted Answer

A) True 
 B)False

Question 20

What is "demand"?

Accepted Answer

A)  The idea that buyers will purchase more of a product as the price drops 
B)  The price and quantity of a product at which the quantity demanded is equal to the quantity supplied 
C)  The idea that producers will offer more of a product as the price rises 
D)  The willingness and ability of buyers to purchase a product 
E)  None of these 
A)  The idea that buyers will purchase more of a product as the price drops 
B)  The price and quantity of a product at which the quantity demanded is equal to the quantity supplied 
C)  The idea that producers will offer more of a product as the price rises 
D)  The willingness and ability of buyers to purchase a product 
E)  None of these

Market economies have all of the following characteristics, except that they

A business is an organization that seeks to earn profits by providing goods and services to customers.

At the point where the supply curve crosses the demand curve on a graph

In a market with perfect competition

Brown Company wants to have an advantage over its competitors. To gain this advantage, it must develop a product that is either or of than that of the competition.

There are several different economic systems, but they all allocate resources in fundamentally the same way.

Total Canadian government expenditures in 2013 were about $500 billion.

Inaccuracies in forecasting an exact supply-demand schedule create surpluses and shortages. Describe what surpluses and shortages are using the concepts of supply and demand and indicate the probable impact of each upon price.

Consider the following statement: "A nation's economic system is its system for allocating its resources among its citizens, both individuals and organizations." What are a nation's "resources," and what important role do they play in a nation's economic system?

Individual ownership of property is a key element in

A GlobeScan poll of 20 000 people in 20 different countries showed that the highest support for capitalism was in the United States and the lowest level of support was in Cuba.

________ must be present if companies are going to be motivated to offer consumers lower prices.

Suppose that several microelectronics manufacturers want to set up a trade association. They need to know that trade associations are allowed to do all of the following except

The price at which the quantity of goods demanded and the quantity of goods supplied are equal is referred to as

Communism and socialism are

The four degrees of competition include all of the following except

Which of the following is correct?

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

The law of demand states that buyers will purchase more of a product as its price drops.

What is "demand"?

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

Market economies have all of the following characteristics, except that they

A business is an organization that seeks to earn profits by providing goods and services to customers.

At the point where the supply curve crosses the demand curve on a graph

In a market with perfect competition

Brown Company wants to have an advantage over its competitors. To gain this advantage, it must develop a product that is either ________ or of ________ than that of the competition.

There are several different economic systems, but they all allocate resources in fundamentally the same way.

Total Canadian government expenditures in 2013 were about $500 billion.

Inaccuracies in forecasting an exact supply-demand schedule create surpluses and shortages. Describe what surpluses and shortages are using the concepts of supply and demand and indicate the probable impact of each upon price.

Consider the following statement: "A nation's economic system is its system for allocating its resources among its citizens, both individuals and organizations." What are a nation's "resources," and what important role do they play in a nation's economic system?

Individual ownership of property is a key element in

A GlobeScan poll of 20 000 people in 20 different countries showed that the highest support for capitalism was in the United States and the lowest level of support was in Cuba.

________ must be present if companies are going to be motivated to offer consumers lower prices.

Suppose that several microelectronics manufacturers want to set up a trade association. They need to know that trade associations are allowed to do all of the following except

The price at which the quantity of goods demanded and the quantity of goods supplied are equal is referred to as

Communism and socialism are

The four degrees of competition include all of the following except

Which of the following is correct?

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

The law of demand states that buyers will purchase more of a product as its price drops.

What is "demand"?

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

Brown Company wants to have an advantage over its competitors. To gain this advantage, it must develop a product that is either or of than that of the competition.