Exam 1: Understanding the Canadian Business System

In a command economy,a centralized government controls all,or most,of the factors of production and makes most decisions involving production of goods and services.

In which economic system will profit motivate entrepreneurs to use resources efficiently and to produce goods that consumers want?

Barrett Corp.has introduced a new smart phone feature that is very popular.What should Barrett do to maximize profits?

Individual ownership of property is a key element in

Technological advances,improved communication,and more efficient transportation networks contributed to the emergence of the

Competition like that between Tide and Cheer,or Coke and Pepsi,is

The term "demand" refers to

Describe the potential impact if a company underestimates demand.

Natural resources include land and mineral deposits.

The term "business" includes large organizations such as General Motors,which seek a profit,but does not include individuals who are self-employed,e.g.,a carpenter,or a beautician who operates a shop in her home.

The private enterprise system guarantees a profit for each business firm if it provides the right goods and services to consumers.

Which of the following businesses has a natural monopoly?

Discuss the reasons why the Canadian government permits certain "natural" monopolies while forbidding attempts by business firms to create a monopoly in other parts of the economy.

Which of the following is an example of a natural resource?

Why are income taxes called progressive taxes?

Socialism is best described as

"Embrace the opportunities and accept the risks" is a phrase that best characterizes the __________ attitude.

If two people exchange an apple,they each still have just one apple,but if they exchange ideas,they now each have two ideas.This is an illustration of

Explain the four essential elements of private enterprise.

What are profits and why are they important to the economic system in Canada?