Question 1

Which of the following fields is concerned with understanding the choices people make in using scarce resources?

Accepted Answer

A)  statistics 
B)  psychology 
C)  accounting 
D)  economics 
A)  statistics 
B)  psychology 
C)  accounting 
D)  economics D

Question 2

Differentiate between a monopoly and an oligopoly in the private enterprise system.

Accepted Answer

A monopoly is a market structure with a single seller.A pure monopoly is a firm that has such unique characteristics that no other firm can enter the market successfully.The Canadian government also makes most pure monopolies illegal by passing antitrust legislation such as the Competition Act.An oligopoly is a market structure in which relatively few sellers compete.High start-up costs create barriers to keep out new competitors.

Question 3

Which of the following market structures best describes the Canadian auto industry?

Accepted Answer

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

Question 4

Under a pure monopoly,no single producer has a significant amount of control over price.

Accepted Answer

A) True 
 B)False

Question 5

Explain how the interaction of supply and demand will correct a surplus or shortage.

Accepted Answer

If there is a surplus,the price is too h

Question 6

List the four factors of production and provide an example of each factor.

Accepted Answer

The four factors of production are natur

Question 7

In order to control the rising price of housing,the city council enacts rent controls.This mandated price is below the equilibrium price.Consequently,a shortage of housing may result.

Accepted Answer

A) True 
 B)False

Question 8

The federal government raises corporate income tax rates in order to reduce the budget deficit.This change will likely ________ economic activity,which is an example of ________ policy.

Accepted Answer

A)  decrease;monetary 
B)  increase;monetary 
C)  increase;fiscal 
D)  decrease;fiscal 
A)  decrease;monetary 
B)  increase;monetary 
C)  increase;fiscal 
D)  decrease;fiscal

Question 9

The Bank of Canada slows the growth in the supply of money and credit.Interest rates will likely ________,which is an example of ________ policy.

Accepted Answer

A)  rise;fiscal 
B)  fall;fiscal 
C)  rise;monetary 
D)  fall;monetary 
A)  rise;fiscal 
B)  fall;fiscal 
C)  rise;monetary 
D)  fall;monetary

Question 10

As the number of suppliers of a product increases,the supply curve shifts to the ________ and the price will ________.

Accepted Answer

A)  right;fall 
B)  right;rise 
C)  left;fall 
D)  left;rise 
A)  right;fall 
B)  right;rise 
C)  left;fall 
D)  left;rise

Question 11

The curve that shows the relationship between different prices and the quantity requested at each price is the ________ curve.

Accepted Answer

A)  equilibrium 
B)  supply 
C)  buying 
D)  demand 
A)  equilibrium 
B)  supply 
C)  buying 
D)  demand

Question 12

In most of Canada,electric utilities operate as regulated monopolies.

Accepted Answer

A) True 
 B)False

Question 13

The Bank of Canada can implement both expansionary and restrictive monetary policies.

Accepted Answer

A) True 
 B)False

Question 14

Assume that incomes rise.In this instance,the demand curve for homes is likely to shift upward and to the left.

Accepted Answer

A) True 
 B)False

Question 15

Cyclical unemployment occurs when the economy slows down and mid-managers,for example,are laid off.

Accepted Answer

A) True 
 B)False

Question 16

In general,as price of a good or service increases,the quantity demanded:

Accepted Answer

A)  increases 
B)  decreases 
C)  stays the same 
D)  depends on the type of product or service 
A)  increases 
B)  decreases 
C)  stays the same 
D)  depends on the type of product or service

Question 17

Fiscal policy ________.

Accepted Answer

A)  reduces the money supply 
B)  increases the money supply 
C)  always results in increasing the national debt 
D)  can be used to increase economic activity 
A)  reduces the money supply 
B)  increases the money supply 
C)  always results in increasing the national debt 
D)  can be used to increase economic activity

Question 18

Kim graduated from college in May and is looking for a job.She is ________ unemployed.

Accepted Answer

A)  structurally 
B)  cyclically 
C)  seasonally 
D)  frictionally 
A)  structurally 
B)  cyclically 
C)  seasonally 
D)  frictionally

Question 19

Natural monopolies often are industries with high entry barriers.

Accepted Answer

A) True 
 B)False

Question 20

Wild price fluctuations are considered to be inevitable in countries experiencing rapid economic growth.

Accepted Answer

A) True 
 B)False

Which of the following fields is concerned with understanding the choices people make in using scarce resources?

Differentiate between a monopoly and an oligopoly in the private enterprise system.

Which of the following market structures best describes the Canadian auto industry?

Under a pure monopoly,no single producer has a significant amount of control over price.

Explain how the interaction of supply and demand will correct a surplus or shortage.

List the four factors of production and provide an example of each factor.

In order to control the rising price of housing,the city council enacts rent controls.This mandated price is below the equilibrium price.Consequently,a shortage of housing may result.

The federal government raises corporate income tax rates in order to reduce the budget deficit.This change will likely economic activity,which is an example of policy.

The Bank of Canada slows the growth in the supply of money and credit.Interest rates will likely ,which is an example of policy.

As the number of suppliers of a product increases,the supply curve shifts to the and the price will .

The curve that shows the relationship between different prices and the quantity requested at each price is the ________ curve.

In most of Canada,electric utilities operate as regulated monopolies.

The Bank of Canada can implement both expansionary and restrictive monetary policies.

Assume that incomes rise.In this instance,the demand curve for homes is likely to shift upward and to the left.

Cyclical unemployment occurs when the economy slows down and mid-managers,for example,are laid off.

In general,as price of a good or service increases,the quantity demanded:

Fiscal policy ________.

Kim graduated from college in May and is looking for a job.She is ________ unemployed.

Natural monopolies often are industries with high entry barriers.

Wild price fluctuations are considered to be inevitable in countries experiencing rapid economic growth.

The Changing Face of Business

Business Ethics and Social Responsibility

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

Exam 3: Economic Challenges Facing Contemporary Business

Which of the following fields is concerned with understanding the choices people make in using scarce resources?

Differentiate between a monopoly and an oligopoly in the private enterprise system.

Which of the following market structures best describes the Canadian auto industry?

Under a pure monopoly,no single producer has a significant amount of control over price.

Explain how the interaction of supply and demand will correct a surplus or shortage.

List the four factors of production and provide an example of each factor.

In order to control the rising price of housing,the city council enacts rent controls.This mandated price is below the equilibrium price.Consequently,a shortage of housing may result.

The federal government raises corporate income tax rates in order to reduce the budget deficit.This change will likely ________ economic activity,which is an example of ________ policy.

The Bank of Canada slows the growth in the supply of money and credit.Interest rates will likely ________,which is an example of ________ policy.

As the number of suppliers of a product increases,the supply curve shifts to the ________ and the price will ________.

The curve that shows the relationship between different prices and the quantity requested at each price is the ________ curve.

In most of Canada,electric utilities operate as regulated monopolies.

The Bank of Canada can implement both expansionary and restrictive monetary policies.

Assume that incomes rise.In this instance,the demand curve for homes is likely to shift upward and to the left.

Cyclical unemployment occurs when the economy slows down and mid-managers,for example,are laid off.

In general,as price of a good or service increases,the quantity demanded:

Fiscal policy ________.

Kim graduated from college in May and is looking for a job.She is ________ unemployed.

Natural monopolies often are industries with high entry barriers.

Wild price fluctuations are considered to be inevitable in countries experiencing rapid economic growth.

The Changing Face of Business

Business Ethics and Social Responsibility

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

The federal government raises corporate income tax rates in order to reduce the budget deficit.This change will likely economic activity,which is an example of policy.

The Bank of Canada slows the growth in the supply of money and credit.Interest rates will likely ,which is an example of policy.

As the number of suppliers of a product increases,the supply curve shifts to the and the price will .