Exam 2: Economic Environment

When the government raises the interest rates on the bonds that it offers what must private businesses do?

A command economy is also called a planned economy or central planning.

If the tourism industry in a Canadian province had 43 percent unemployment due to an economic downturn that gripped the country, the workers in the tourism industry would be experiencing which of the following type of unemployment?

There is lowered confidence in the markets today because of which of the following reasons?

When the economy is in a recession, many companies must lay off workers, causing which type of unemployment?

Market equilibrium is described as which of the following?

What kind of interaction is a dry-cleaner using when it keeps records of a customer's dry-cleaning orders and gives a free cleaning after every 12th dry-cleaning order?

The factors of production are natural resources, labour, capital, entrepreneurship, and knowledge.

What is the difference between a market economy and a command economy with respect to business ownership?

The movement of inputs and outputs among households, businesses, and governments is referred to as circular flow.

Which of the following situations occurs when government spending replaces spending by the private sector?

The national debt is the accumulation of deficits that have occurred in the past as a result of expenditures exceeding tax revenues.

The Bank of Canada increases the growth of the money supply when it implements which of the following?

Relationship management would benefit a company that provides janitorial cleaning services for businesses.

The unemployment rate is the percentage of the total workforce that is not working but is engaged in which of the following activities?

The price of a decorated three-tiered wedding cake from a local supermarket deli recently increased from $105 to $119. The supermarket manager said it was due entirely to increases in sugar and labour costs. The $14 increase is an example of which of the following?

Which of the following is a key trend in macroeconomics?

If a nation experienced an inflation rate of about 12 percent and then, 5 years later, had an inflation rate of about 15 percent, which of the following statements best describes what was happening to purchasing power during that period?

Which of the following statements best describes strategic alliances?

The quantity of a good or service that businesses will make available at various prices is referred to as demand.