Exam 2: Economic Environment

Which type of economy is based on competition in the marketplace and private ownership of the factors of production?

A strategic alliance is a cooperative agreement between a company and its banker.

Suppose that 50 percent of the labour force in a country is involved in the agricultural sector, but the economic growth in the nation comes from industry and tourism. What type of unemployment would such a mismatch of ability and job requirements cause?

Which of the following is the Bank of Canada implementing when it tightens the money supply by selling government securities or raising interest rates?

Laron Kelly recently quit his job as a car salesperson and is now trying to find a job with another car dealership. This is an example of which type of unemployment?

It is difficult to enter a monopolistic competition market structure.

Because Allyson Levi works in a vegetable processing plant and is out of work about six months a year due to the periodic harvest times, she can be described as seasonally unemployed.

What is a general upward movement of prices in the economy?

One of the three areas of concern today that have lowered confidence in the markets is the failure of European governments to manage their fiscal problems.

An individual who is thinking of buying a Wendy's franchise in London, Ontario, and is examining the employment statistics, area income levels, and local competition would be interested in which of the following fields?

Think about all the restaurants that are located near your campus. You have probably noted some new ones appearing, and others closing because of lack of business. What type of competition exists in the restaurant business?

Last year, a mother in a small African nation could buy a pound of flour for the Canadian equivalent of $1.30. Six months ago, an identical pound of flour cost $3.40. Today she would need $5.60 to buy that pound of flour. What is the term for this example of the general upward movement of prices?

Monetary policy deals with tax revenues and expenditures at the national level.

A manager in the life insurance industry examining the national level of personal income, the unemployment rate, interest rates, inflation, and death statistics would be looking at which of her company's environments?

The GMC manager who evaluates truck models made by his competition, consumer demand for different sizes of trucks, labour and material costs to build trucks, and current prices of all trucks would be taking which of the following perspectives?

What does it mean if the annual inflation rate in a country was 8.1 percent?

If the GDP of a country in 2010 was $48 billion, what does this $48 billion represent?

There is lowered confidence in the markets today. Which of the following is NOT one of those reasons?

A farmer's market where 60 farmers come weekly to sell the produce they grow in their gardens is an example of monopolistic competition.

The relationship of the inputs and outputs of households, businesses, and governments can be graphically explained through the use of which figure?