Question 1

Workers in socialist countries often get longer vacations and more social benefits than workers in free market economies.

Accepted Answer

A) True 
 B)False

Question 2

Two or more consecutive quarters of GDP decline is known as a .

Accepted Answer

A) seasonal 
B) depression 
C) recession 
D) frictional 
A) seasonal 
B) depression 
C) recession 
D) frictional

Question 3

Price is the key factor that determines both quantity supplied and quantity demanded.

Accepted Answer

A) True 
 B)False

Question 4

Adam Smith's theories focused on explaining the best way to divide the fixed resources we have available,rather than on how to create more wealth.

Accepted Answer

A) True 
 B)False

Question 5

The strength of the economy has a large effect on businesses.

Accepted Answer

A) True 
 B)False

Question 6

In a mixed economy,some allocation of resources is made by government,and some by the market.

Accepted Answer

A) True 
 B)False

Question 7

What is the difference between macroeconomics and microeconomics?

Accepted Answer

Macroeconomics looks at the operation of

Question 8

A(n)_______exists when the entire supply of a good is controlled by a single seller.

Accepted Answer

A) monopoly 
B) perfect competition 
C) pure capitalism 
D) oligopoly 
A) monopoly 
B) perfect competition 
C) pure capitalism 
D) oligopoly

Question 9

The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business.

Accepted Answer

A) True 
 B)False

Question 10

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs.

Accepted Answer

A) True 
 B)False

Question 11

The top tax rate on personal income in most socialist economies is usually lower than the top tax rate on personal income in capitalist economies.

Accepted Answer

A) True 
 B)False

Question 12

A(n)_______exists when a large number of firms produce goods that are similar but are perceived by buyers as being different.

Accepted Answer

A) monopolistic competition 
B) monopoly 
C) oligopoly 
D) perfect competition 
A) monopolistic competition 
B) monopoly 
C) oligopoly 
D) perfect competition

Question 13

In capitalism,most decisions about what goods and services to produce are made by:

Accepted Answer

A) majority rule,with everyone receiving an equal vote. 
B) a variety of government agencies. 
C) a central planning board that consists of consumers,business executives,and employees. 
D) business people. 
A) majority rule,with everyone receiving an equal vote. 
B) a variety of government agencies. 
C) a central planning board that consists of consumers,business executives,and employees. 
D) business people.

Question 14

Over the recent past,Canadian governments have been privatizing a number of businesses,as growing public sentiment is that governments are not effective as business operators.This trend is an example of the growth of:

Accepted Answer

A) command economies 
B) free trade 
C) free-market economies 
D) mixed economies 
A) command economies 
B) free trade 
C) free-market economies 
D) mixed economies

Question 15

The _______index measures changes in the prices of goods and services such as food,housing,and apparel.

Accepted Answer

A) producer price 
B) market price 
C) wholesale price 
D) consumer price 
A) producer price 
B) market price 
C) wholesale price 
D) consumer price

Question 16

When prices are free to adjust over time,the market price of a good tends to:

Accepted Answer

A) fall below the equilibrium price in the long run. 
B) have no specific relationship to the equilibrium price. 
C) equal the equilibrium price in the long run. 
D) rise above the equilibrium price in the long run. 
A) fall below the equilibrium price in the long run. 
B) have no specific relationship to the equilibrium price. 
C) equal the equilibrium price in the long run. 
D) rise above the equilibrium price in the long run.

Question 17

In socialist economies,the government owns some,if not most,basic businesses such as coal mines and utilities.

Accepted Answer

A) True 
 B)False

Question 18

Jorge Martinez is a hard working entrepreneur who operated a successful business in his home country of Margintina for many years.Recently,however,he immigrated to Canada and applied for Canadian citizenship."In Margintina,tax rates were very high," Jorge complained."The government used the taxes I paid to finance all sorts of social programs to help the less fortunate.While this is a noble goal,it has really undermined the profit incentive of individuals such as myself.I really feel that these high taxes have stifled economic growth." Jorge's comments illustrate the reason many socialist countries are experiencing a(n):

Accepted Answer

A) depression. 
B) brain drain. 
C) antitrust problem. 
D) budget surplus. 
A) depression. 
B) brain drain. 
C) antitrust problem. 
D) budget surplus.

Question 19

In capitalism,the government prohibits people and businesses from competing with each other.

Accepted Answer

A) True 
 B)False

Question 20

Over the past decade,socialist economies have proven to be more successful at innovation and inventions than capitalist economies.

Accepted Answer

A) True 
 B)False

Workers in socialist countries often get longer vacations and more social benefits than workers in free market economies.

Two or more consecutive quarters of GDP decline is known as a .

Price is the key factor that determines both quantity supplied and quantity demanded.

Adam Smith's theories focused on explaining the best way to divide the fixed resources we have available,rather than on how to create more wealth.

The strength of the economy has a large effect on businesses.

In a mixed economy,some allocation of resources is made by government,and some by the market.

What is the difference between macroeconomics and microeconomics?

A(n)_______exists when the entire supply of a good is controlled by a single seller.

The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business.

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs.

The top tax rate on personal income in most socialist economies is usually lower than the top tax rate on personal income in capitalist economies.

A(n)_______exists when a large number of firms produce goods that are similar but are perceived by buyers as being different.

In capitalism,most decisions about what goods and services to produce are made by:

Over the recent past,Canadian governments have been privatizing a number of businesses,as growing public sentiment is that governments are not effective as business operators.This trend is an example of the growth of:

The _______index measures changes in the prices of goods and services such as food,housing,and apparel.

When prices are free to adjust over time,the market price of a good tends to:

In socialist economies,the government owns some,if not most,basic businesses such as coal mines and utilities.

In capitalism,the government prohibits people and businesses from competing with each other.

Over the past decade,socialist economies have proven to be more successful at innovation and inventions than capitalist economies.

The Dynamic Business Environment

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

Financial Management Appendix C Managing Risk

The Financial Services Industry in Canada

Filters

Exam 2: How Economic Issues Affect Business

Workers in socialist countries often get longer vacations and more social benefits than workers in free market economies.

Two or more consecutive quarters of GDP decline is known as a .

Price is the key factor that determines both quantity supplied and quantity demanded.

Adam Smith's theories focused on explaining the best way to divide the fixed resources we have available,rather than on how to create more wealth.

The strength of the economy has a large effect on businesses.

In a mixed economy,some allocation of resources is made by government,and some by the market.

What is the difference between macroeconomics and microeconomics?

A(n)_______exists when the entire supply of a good is controlled by a single seller.

The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business.

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs.

The top tax rate on personal income in most socialist economies is usually lower than the top tax rate on personal income in capitalist economies.

A(n)_______exists when a large number of firms produce goods that are similar but are perceived by buyers as being different.

In capitalism,most decisions about what goods and services to produce are made by:

Over the recent past,Canadian governments have been privatizing a number of businesses,as growing public sentiment is that governments are not effective as business operators.This trend is an example of the growth of:

The _______index measures changes in the prices of goods and services such as food,housing,and apparel.

When prices are free to adjust over time,the market price of a good tends to:

In socialist economies,the government owns some,if not most,basic businesses such as coal mines and utilities.

In capitalism,the government prohibits people and businesses from competing with each other.

Over the past decade,socialist economies have proven to be more successful at innovation and inventions than capitalist economies.

The Dynamic Business Environment

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

Financial Management Appendix C Managing Risk

The Financial Services Industry in Canada

Filters