Question 1

How does a command economy differ from a market economy?

Accepted Answer

A command economy relies on a centralize

Question 2

Profit is

Accepted Answer

A)  what remains after business expenses are subtracted from business revenues. 
B)  equal to the market value of shares in a company. 
C)  equal to total revenue minus cash expenses. 
D)  the amount of sales minus 50 percent. 
E)  double the amount the company pays in taxes. 
A)  what remains after business expenses are subtracted from business revenues. 
B)  equal to the market value of shares in a company. 
C)  equal to total revenue minus cash expenses. 
D)  the amount of sales minus 50 percent. 
E)  double the amount the company pays in taxes.

Question 3

If a semiconductor firm is opening a new manufacturing facility in Canada and is looking for ways to better influence government policy in their industry,it could

Accepted Answer

A)  hire a lobbyist or join a trade association. 
B)  obtain a government contract for supplies and equipment. 
C)  ensure worker safety in its business facilities. 
D)  keep its manufacturing plants in Canada. 
E)  obtain export business for the new facility. 
A)  hire a lobbyist or join a trade association. 
B)  obtain a government contract for supplies and equipment. 
C)  ensure worker safety in its business facilities. 
D)  keep its manufacturing plants in Canada. 
E)  obtain export business for the new facility.

Question 4

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 5

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 qua

Question 6

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years.The firm decides to expand its battery production.This illustrates

Accepted Answer

A)  the law of supply. 
B)  the law of market price. 
C)  the law of equilibrium. 
D)  the law of demand. 
E)  the law of supply and demand. 
A)  the law of supply. 
B)  the law of market price. 
C)  the law of equilibrium. 
D)  the law of demand. 
E)  the law of supply and demand.

Question 7

A major drawback to communism as an economic system is that

Accepted Answer

A)  government control of the factors of production is only temporary. 
B)  people don't like communism. 
C)  individuals contribute according to their ability. 
D)  individuals receive economic benefits according to their needs. 
E)  production of goods and services is inefficient because of the lack of a profit incentive. 
A)  government control of the factors of production is only temporary. 
B)  people don't like communism. 
C)  individuals contribute according to their ability. 
D)  individuals receive economic benefits according to their needs. 
E)  production of goods and services is inefficient because of the lack of a profit incentive.

Question 8

Which of the following motivates an entrepreneur to operate his or her business efficiently?

Accepted Answer

A)  Freedom of choice 
B)  Private property rights 
C)  Privatization 
D)  The right to vote 
E)  Competition 
A)  Freedom of choice 
B)  Private property rights 
C)  Privatization 
D)  The right to vote 
E)  Competition

Question 9

Joe's Pizza introduces a new variety of a personal pizza.Which of the following actions would most likely prevent a surplus or a shortage of the personal pizzas in the first week?

Accepted Answer

A)  Limit the supply of the personal pizza. 
B)  Lower demand for the personal pizza. 
C)  Set the price of substitute goods. 
D)  Estimate the market price of the personal pizza. 
E)  Lower the price of the pizza throughout the week. 
A)  Limit the supply of the personal pizza. 
B)  Lower demand for the personal pizza. 
C)  Set the price of substitute goods. 
D)  Estimate the market price of the personal pizza. 
E)  Lower the price of the pizza throughout the week.

Question 10

Gasoline stations are an example of a type of business involved in perfect competition.

Accepted Answer

A) True 
 B)False

Question 11

What basic argument did Adam Smith make in his book,The Wealth of Nations?

Accepted Answer

A)  Someone will be more successful in business if he or she is a leader and true entrepreneur. 
B)  Socialism is the best economic system. 
C)  National wealth was created fastest by the mercantile system. 
D)  Government should not interfere in the economy,but should let businesses function without regulation or restriction. 
E)  The government should own the means of production. 
A)  Someone will be more successful in business if he or she is a leader and true entrepreneur. 
B)  Socialism is the best economic system. 
C)  National wealth was created fastest by the mercantile system. 
D)  Government should not interfere in the economy,but should let businesses function without regulation or restriction. 
E)  The government should own the means of production.

Question 12

The early years of business in Canada were motivated by

Accepted Answer

A)  a desire to settle the Prairies. 
B)  profits from fishing. 
C)  profits from mining. 
D)  a desire to find a way to China. 
E)  profits from logging. 
A)  a desire to settle the Prairies. 
B)  profits from fishing. 
C)  profits from mining. 
D)  a desire to find a way to China. 
E)  profits from logging.

Question 13

Great Lakes Power is the only company that supplies power to rural areas.What situation would the company be in?

Accepted Answer

A)  Oligopoly 
B)  Pure competition 
C)  Monopolistic competition 
D)  Monopoly 
E)  None of these 
A)  Oligopoly 
B)  Pure competition 
C)  Monopolistic competition 
D)  Monopoly 
E)  None of these

How does a command economy differ from a market economy?

Profit is

If a semiconductor firm is opening a new manufacturing facility in Canada and is looking for ways to better influence government policy in their industry,it could

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

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.

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years.The firm decides to expand its battery production.This illustrates

A major drawback to communism as an economic system is that

Which of the following motivates an entrepreneur to operate his or her business efficiently?

Joe's Pizza introduces a new variety of a personal pizza.Which of the following actions would most likely prevent a surplus or a shortage of the personal pizzas in the first week?

Gasoline stations are an example of a type of business involved in perfect competition.

What basic argument did Adam Smith make in his book,The Wealth of Nations?

The early years of business in Canada were motivated by

Great Lakes Power is the only company that supplies power to rural areas.What situation would the company be in?

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Understanding Securities and Investments

Financial Decisions and Risk Management

Filters

Exam 1: Understanding the Canadian Business System

How does a command economy differ from a market economy?

Profit is

If a semiconductor firm is opening a new manufacturing facility in Canada and is looking for ways to better influence government policy in their industry,it could

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

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.

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years.The firm decides to expand its battery production.This illustrates

A major drawback to communism as an economic system is that

Which of the following motivates an entrepreneur to operate his or her business efficiently?

Joe's Pizza introduces a new variety of a personal pizza.Which of the following actions would most likely prevent a surplus or a shortage of the personal pizzas in the first week?

Gasoline stations are an example of a type of business involved in perfect competition.

What basic argument did Adam Smith make in his book,The Wealth of Nations?

The early years of business in Canada were motivated by

Great Lakes Power is the only company that supplies power to rural areas.What situation would the company be in?

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Understanding Securities and Investments

Financial Decisions and Risk Management

Filters