Exam 1: Exploring the World of Business and Economics

In the last few years, there has been increasing competition from Chinese smartphone makers. Some Chinese-made smartphones are sold at prices well below those made by competitors Apple and Samsung, in part due to low labour costs. For US-based Apple, the increase of Chinese smartphone manufacturers will likely have an impact on all of the following type of factors EXCEPT which one?

Alia works for a real estate development company that builds office complexes and leases them to private businesses and nonprofit organizations. Although her company owns the land upon which it builds and has the right to profits from its activities, it often has to navigate a variety of regulations, permits, and taxes whenever it starts a new development. Alia's employer most likely operates in what kind of economy?

If all leading corporations in the soft-drink industry merged, forcing all smaller soft-drink companies out of business, which of the following would be created?

As the price of jeans rises, how are manufacturers that make and sell jeans likely to respond?

When Toyota experienced declining sales, it began offering price incentives to new car buyers. Nearly immediately, Ford and General Motors began similar promotions. Which of the following describes these businesses in this scenario?

You live in a mixed economy and currently produce granola bars that are organic and non-GMO. As a result, consumers are willing to pay more for your product for others on the market. Based on the concept of supply and demand, how is this likely to affect your production planning?

As a farmer, Gary is familiar with the economics of perfect competition. How is the price at which he sells his corn determined?

Although all casual clothing ultimately provides the same purpose, companies such as The Gap strive to make their brand seem unique from the many other brands available on the market. The market for casual clothing can best be characterized as which of the following?

GM once employed thousands of people in Ontario. For a variety of reasons GM closed factories or moved them to different locations. As a result, thousands of people were laid off and not able to find jobs that paid as well. This is an example of which of the following?

You manufacture construction equipment. The price of steel has increased by 30%, forcing you to increase the price of your equipment by the same amount. What is the likely effect?

Capitalism stems from the theories of which eighteenth-century Scottish economist?

How can the relationship between sales and profits be written?

When a firm's sales revenues are greater than its expenses, what has the firm earned?

What is the term used to describe the economy of Canada, which exhibits elements of both capitalism and socialism?

What is stated by the law of supply?

In which of the following market situations (or industries) are there few sellers?

According to economists, what is inflation?

Tim owns and operates his own small automobile repair shop. However, the prices he can charge are fixed, and he rents his land and building from the government. Most of his friends work for industries owned by the government, although they also enjoy a high level of social services. Tim's country is most likely which type of economy?

Under Armor uses a number of different fabrics in its clothing designed to be moisture wicking, regulate body temperature, or provide support. This is an example of providing what benefit to society?

What is stated by the law of demand?