Question 1

What does the demand curve show?

Accepted Answer

The demand curve shows how many products will be demanded at different prices.

Question 2

What is the difference between deregulation and privatization?

Accepted Answer

Deregulation means a reduction in the number of laws affecting business activity and in the powers of government enforcement agencies.Privatization means converting government enterprises into private sector companies.In the 1990s,there was a definite trend toward deregulation and privatization,but the major economic problems that many countries have been facing in recent years,particularly in their financial sectors,has meant the re-imposition of stricter government controls in some areas of the economy.

Question 3

An economic system in which markets decide what,when,and for whom to produce is called which of the following?

Accepted Answer

A) Socialism 
B) Mixed market 
C) Capitalism 
D) Communism 
E) Fascism 
A) Socialism 
B) Mixed market 
C) Capitalism 
D) Communism 
E) Fascism C

Question 4

Compare and contrast the four degrees of competition in a private enterprise system.

Accepted Answer

The four degrees of competition include

Question 5

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service which customers will purchase is known as the

Accepted Answer

A) variable price curve. 
B) equilibrium curve. 
C) demand curve. 
D) supply curve. 
E) balance curve. 
A) variable price curve. 
B) equilibrium curve. 
C) demand curve. 
D) supply curve. 
E) balance curve.

Question 6

How does government compete with business in Canada?

Accepted Answer

Government competes with business throug

Question 7

Socialism is best described as

Accepted Answer

A) a kind of command economy in which the government owns and operates all industries. 
B) a kind of command economy in which the government owns and operates large critical industries. 
C) an economy that is free from any regulation or planning. 
D) a market economy in which markets decide what,when,and how much to produce. 
E) an economic system with elements of a market economy,but not a planned economy. 
A) a kind of command economy in which the government owns and operates all industries. 
B) a kind of command economy in which the government owns and operates large critical industries. 
C) an economy that is free from any regulation or planning. 
D) a market economy in which markets decide what,when,and how much to produce. 
E) an economic system with elements of a market economy,but not a planned economy.

Question 8

AB Distributors is a company that serves as a shipping intermediary for other companies.Its sales revenue has increased from the previous year.Jonathan,a sales manager at AB,says,"Since the company has increased its revenue,it is now more profitable." Which of the following,if true,would most weaken Jonathan's contention?

Accepted Answer

A) AB Distributor's clients are happy with the company's services. 
B) Shipping costs for the industry have significantly increased over the last year. 
C) AB Distributor's employees are dissatisfied with the company's working conditions. 
D) The shipping intermediary industry has experienced a slowdown overall. 
E) Many of AB Distributor's employees are new to the business. 
A) AB Distributor's clients are happy with the company's services. 
B) Shipping costs for the industry have significantly increased over the last year. 
C) AB Distributor's employees are dissatisfied with the company's working conditions. 
D) The shipping intermediary industry has experienced a slowdown overall. 
E) Many of AB Distributor's employees are new to the business.

Question 9

In a small town of 3,000 people,the number of car washes has grown from two to five in the last two months.Which result will likely occur?

Accepted Answer

A) The increase in supply will have no effect on the equilibrium price. 
B) The increase in supply will lead to a decrease in demand. 
C) The increase in supply will lead to a decrease in the equilibrium price. 
D) The increase in supply will lead to an increase in demand. 
E) The increase in supply will lead to an increase in equilibrium price. 
A) The increase in supply will have no effect on the equilibrium price. 
B) The increase in supply will lead to a decrease in demand. 
C) The increase in supply will lead to a decrease in the equilibrium price. 
D) The increase in supply will lead to an increase in demand. 
E) The increase in supply will lead to an increase in equilibrium price.

Question 10

Anon Corporation is a manufacturer of Widgets.Faced with increasing input material costs,the company is considering a 15-20 percent price increase.There are significant disagreements among senior personnel in the company about this move. Which of the following,if true,would weaken the argument for a price increase?

Accepted Answer

A) The input costs of raw materials are expected to increase further in the coming months. 
B) Customers are loyal to the brand mainly because they believe in the quality of ingredients used. 
C) Anon's competitors have announced an increase in prices. 
D) One of Anon's major competitors has just declared bankruptcy. 
E) Market research done by the company reveals that demand for Widgets is readily affected by the price. 
A) The input costs of raw materials are expected to increase further in the coming months. 
B) Customers are loyal to the brand mainly because they believe in the quality of ingredients used. 
C) Anon's competitors have announced an increase in prices. 
D) One of Anon's major competitors has just declared bankruptcy. 
E) Market research done by the company reveals that demand for Widgets is readily affected by the price.

Question 11

What is a business?

Accepted Answer

A business is an org

Question 12

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

Accepted Answer

A) the importance of natural resources. 
B) the principle of specialization of labour. 
C) the difference between information and all the other factors of production. 
D) the importance of profit in market economies. 
E) the importance of government regulation. 
A) the importance of natural resources. 
B) the principle of specialization of labour. 
C) the difference between information and all the other factors of production. 
D) the importance of profit in market economies. 
E) the importance of government regulation.

Question 13

The privatization of postal services in several countries is consistent with the argument that there is no such thing as a "natural" monopoly.

Accepted Answer

A) True 
 B)False

Question 14

Ernesto's Pizza is about to offer customers a new variety of a personal pizza.Which of the following actions by Ernesto's Pizza would most likely prevent a surplus or a shortage of the personal pizzas in its 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 15

When the quantity of goods demanded equals the quantity of goods supplied,this is referred to as which of the following?

Accepted Answer

A) Buyers' price 
B) Suppliers' price 
C) Profit price 
D) Equilibrium price 
E) Demand price 
A) Buyers' price 
B) Suppliers' price 
C) Profit price 
D) Equilibrium price 
E) Demand price

Question 16

What is the fundamental difference between a command economy and a market economy?

Accepted Answer

A command economy relies on a centralize

Question 17

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called

Accepted Answer

A) a centrally planned economy. 
B) privatization. 
C) a market economy. 
D) communism. 
E) socialism. 
A) a centrally planned economy. 
B) privatization. 
C) a market economy. 
D) communism. 
E) socialism.

Question 18

AB Distributors is a company that serves as a shipping intermediary for other companies.Its sales revenue has increased from the previous year.Jonathan,a sales manager at AB,says,"Since the company has increased its revenue,it is now more profitable." Another manager at AB Distributor,Shawna,suggests that if the company's revenue had not increased,it would not have been able to increase its profits.Which of the following points out a flaw in Shawna's reasoning?

Accepted Answer

A) Other similar companies have increased their profits too. 
B) Revenue is not always relevant to figuring profitability. 
C) Profitability is not the only objective of the company. 
D) The company can increase revenue only by cutting costs. 
E) It is possible to increase profits by lowering costs. 
A) Other similar companies have increased their profits too. 
B) Revenue is not always relevant to figuring profitability. 
C) Profitability is not the only objective of the company. 
D) The company can increase revenue only by cutting costs. 
E) It is possible to increase profits by lowering costs.

Question 19

Which country has a command economy?

Accepted Answer

A) Australia 
B) Japan 
C) Canada 
D) Germany 
E) North Korea 
A) Australia 
B) Japan 
C) Canada 
D) Germany 
E) North Korea

Question 20

Explain the roles of demand and supply in a market economy.

Accepted Answer

On all economic levels of a market econo

What does the demand curve show?

What is the difference between deregulation and privatization?

An economic system in which markets decide what,when,and for whom to produce is called which of the following?

Compare and contrast the four degrees of competition in a private enterprise system.

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service which customers will purchase is known as the

How does government compete with business in Canada?

Socialism is best described as

In a small town of 3,000 people,the number of car washes has grown from two to five in the last two months.Which result will likely occur?

What is a business?

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

The privatization of postal services in several countries is consistent with the argument that there is no such thing as a "natural" monopoly.

Ernesto's Pizza is about to offer customers a new variety of a personal pizza.Which of the following actions by Ernesto's Pizza would most likely prevent a surplus or a shortage of the personal pizzas in its first week?

When the quantity of goods demanded equals the quantity of goods supplied,this is referred to as which of the following?

What is the fundamental difference between a command economy and a market economy?

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called

Which country has a command economy?

Explain the roles of demand and supply in a market economy.

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters

Exam 1: Understanding the Canadian Business System

What does the demand curve show?

What is the difference between deregulation and privatization?

An economic system in which markets decide what,when,and for whom to produce is called which of the following?

Compare and contrast the four degrees of competition in a private enterprise system.

The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service which customers will purchase is known as the

How does government compete with business in Canada?

Socialism is best described as

In a small town of 3,000 people,the number of car washes has grown from two to five in the last two months.Which result will likely occur?

What is a business?

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

The privatization of postal services in several countries is consistent with the argument that there is no such thing as a "natural" monopoly.

Ernesto's Pizza is about to offer customers a new variety of a personal pizza.Which of the following actions by Ernesto's Pizza would most likely prevent a surplus or a shortage of the personal pizzas in its first week?

When the quantity of goods demanded equals the quantity of goods supplied,this is referred to as which of the following?

What is the fundamental difference between a command economy and a market economy?

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called

Which country has a command economy?

Explain the roles of demand and supply in a market economy.

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters