Question 1

In a market with perfect competition

Accepted Answer

A)  buyers and sellers do not know the price structure of the market. 
B)  price is set by supply and demand. 
C)  there are very few sellers. 
D)  firms are relatively large. 
E)  products have very few similarities. 
A)  buyers and sellers do not know the price structure of the market. 
B)  price is set by supply and demand. 
C)  there are very few sellers. 
D)  firms are relatively large. 
E)  products have very few similarities. B

Question 2

The point at which the quantity of a product or service demanded is the same as the quantity supplied is called

Accepted Answer

A)  the surplus point. 
B)  the equilibrium point. 
C)  the supply point. 
D)  the profit point. 
E)  the demand point. 
A)  the surplus point. 
B)  the equilibrium point. 
C)  the supply point. 
D)  the profit point. 
E)  the demand point. B

Question 3

In economic terms, a "market" is

Accepted Answer

A)  available in capitalist nations, but not in communist nations. 
B)  located where buyers can most easily access it. 
C)  the physical location (for example, a grocery store) where exchanges take place between buyers and sellers. 
D)  an exchange process between sellers and buyers. 
E)  all of the above. 
A)  available in capitalist nations, but not in communist nations. 
B)  located where buyers can most easily access it. 
C)  the physical location (for example, a grocery store) where exchanges take place between buyers and sellers. 
D)  an exchange process between sellers and buyers. 
E)  all of the above. D

Question 4

Explain the terms, "command economy" and "market economy." Give an illustration of each.

Accepted Answer

- Command: government dominated, governm

Question 5

Why are sales taxes called regressive taxes?

Accepted Answer

A)  Because food and drugs are often exempt 
B)  Because the more one makes, the lower the rate of sales tax that is applied to one's purchases 
C)  Because poorer people pay a higher percentage of their income than richer people 
D)  Because it applies to sales taxes 
E)  Because they discourage the purchase of some products 
A)  Because food and drugs are often exempt 
B)  Because the more one makes, the lower the rate of sales tax that is applied to one's purchases 
C)  Because poorer people pay a higher percentage of their income than richer people 
D)  Because it applies to sales taxes 
E)  Because they discourage the purchase of some products

Question 6

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 7

John has just received a rather large increase in salary, but he is upset because he feels that he should not be charged a higher rate of tax on this extra money. John is being taxed by a ________ tax system.

Accepted Answer

A)  provincial 
B)  federal 
C)  progressive 
D)  restrictive 
E)  regressive 
A)  provincial 
B)  federal 
C)  progressive 
D)  restrictive 
E)  regressive

Question 8

Profit is

Accepted Answer

A)  the market value of shares of stock in a company. 
B)  the level of expenses divided by the firm's assets. 
C)  what remains after business expenses are subtracted from business revenues. 
D)  gross revenue minus taxes a company pays. 
E)  gross sales minus taxes a company pays. 
A)  the market value of shares of stock in a company. 
B)  the level of expenses divided by the firm's assets. 
C)  what remains after business expenses are subtracted from business revenues. 
D)  gross revenue minus taxes a company pays. 
E)  gross sales minus taxes a company pays.

Question 9

The law of demand states that

Accepted Answer

A)  producers will offer more of a product as the price falls. 
B)  demand and supply meet at an equilibrium point. 
C)  buyers will purchase more of a product as the price falls. 
D)  producers will offer more of a product as the price rises. 
E)  buyers will purchase more of a product as the price rises. 
A)  producers will offer more of a product as the price falls. 
B)  demand and supply meet at an equilibrium point. 
C)  buyers will purchase more of a product as the price falls. 
D)  producers will offer more of a product as the price rises. 
E)  buyers will purchase more of a product as the price rises.

Question 10

Examples of businesses include all of the following except

Accepted Answer

A)  local supermarkets. 
B)  one-person businesses, like barbershops. 
C)  non-profit organizations. 
D)  large corporations like Canadian Pacific or Alcan Aluminum. 
E)  farms. 
A)  local supermarkets. 
B)  one-person businesses, like barbershops. 
C)  non-profit organizations. 
D)  large corporations like Canadian Pacific or Alcan Aluminum. 
E)  farms.

Question 11

Which law forbids most monopolies in Canada?

Accepted Answer

A)  Consumer Protection Act 
B)  Lobbying Act 
C)  Fair Trade Act 
D)  Competition Act 
E)  Environmental Contaminants Act 
A)  Consumer Protection Act 
B)  Lobbying Act 
C)  Fair Trade Act 
D)  Competition Act 
E)  Environmental Contaminants Act

Question 12

A command economy relies on a centralized government to control all or most of the factors of production and to make all or most production and allocation decisions.

Accepted Answer

A) True 
 B)False

Question 13

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 14

If the equilibrium point of 5-for-1 Pizza is 2000 pizzas per week and $10.00 per pizza, and the owner decides to make 1900 pizzas and sell them at the same price, what is the likely outcome?

Accepted Answer

A)  The business will have less expenses and also have greater profit. 
B)  The business will have a shortage. 
C)  The business will make more profit. 
D)  The business will have a surplus. 
E)  The business will have less expenses but no more profit. 
A)  The business will have less expenses and also have greater profit. 
B)  The business will have a shortage. 
C)  The business will make more profit. 
D)  The business will have a surplus. 
E)  The business will have less expenses but no more profit.

Question 15

The reasons why the government regulates many aspects of business activity include protecting competition, protecting consumers, achieving social goals, and protecting the environment.

Accepted Answer

A) True 
 B)False

Question 16

There is general agreement that the bailout of Canadian automakers in 2009 was a good decision.

Accepted Answer

A) True 
 B)False

Question 17

Competition like that between Tide and Cheer, Coke and Pepsi, and Sears and Ralph Lauren is

Accepted Answer

A)  oligopolistic competition. 
B)  monopolistic competition. 
C)  oligopoly. 
D)  perfect competition. 
E)  monopoly. 
A)  oligopolistic competition. 
B)  monopolistic competition. 
C)  oligopoly. 
D)  perfect competition. 
E)  monopoly.

Question 18

Describe monopolistic competition in terms of the number of competitors, ease of entry into the market, similarity of goods/services offered by competing firms, and level of control over price by individual firms. Give an example of a market or industry characterized by monopolistic competition.

Accepted Answer

In a market characterized by monopolisti

Question 19

Expert Electronics sells state-of-the-art desktop computer systems. It competes with several other large computer manufacturers. How would you characterize the level of competition for computers? How are prices set in this type of competitive environment? If Expert Electronics cuts the prices for its computer systems, how will competitors likely respond?

Accepted Answer

Because there are only a few sellers, th

Question 20

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years. The firm decides to expand its battery production. This illustrates

Accepted Answer

A)  the law of supply. 
B)  the law of market price. 
C)  the law of equilibrium. 
D)  the law of demand. 
E)  the law of supply and demand. 
A)  the law of supply. 
B)  the law of market price. 
C)  the law of equilibrium. 
D)  the law of demand. 
E)  the law of supply and demand.

In a market with perfect competition

The point at which the quantity of a product or service demanded is the same as the quantity supplied is called

In economic terms, a "market" is

Explain the terms, "command economy" and "market economy." Give an illustration of each.

Why are sales taxes called regressive taxes?

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

John has just received a rather large increase in salary, but he is upset because he feels that he should not be charged a higher rate of tax on this extra money. John is being taxed by a ________ tax system.

Profit is

The law of demand states that

Examples of businesses include all of the following except

Which law forbids most monopolies in Canada?

A command economy relies on a centralized government to control all or most of the factors of production and to make all or most production and allocation decisions.

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?

If the equilibrium point of 5-for-1 Pizza is 2000 pizzas per week and $10.00 per pizza, and the owner decides to make 1900 pizzas and sell them at the same price, what is the likely outcome?

The reasons why the government regulates many aspects of business activity include protecting competition, protecting consumers, achieving social goals, and protecting the environment.

There is general agreement that the bailout of Canadian automakers in 2009 was a good decision.

Competition like that between Tide and Cheer, Coke and Pepsi, and Sears and Ralph Lauren is

Describe monopolistic competition in terms of the number of competitors, ease of entry into the market, similarity of goods/services offered by competing firms, and level of control over price by individual firms. Give an example of a market or industry characterized by monopolistic competition.

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years. The firm decides to expand its battery production. This illustrates

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, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 1: Understanding the Canadian Business System

In a market with perfect competition

The point at which the quantity of a product or service demanded is the same as the quantity supplied is called

In economic terms, a "market" is

Explain the terms, "command economy" and "market economy." Give an illustration of each.

Why are sales taxes called regressive taxes?

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

John has just received a rather large increase in salary, but he is upset because he feels that he should not be charged a higher rate of tax on this extra money. John is being taxed by a ________ tax system.

Profit is

The law of demand states that

Examples of businesses include all of the following except

Which law forbids most monopolies in Canada?

A command economy relies on a centralized government to control all or most of the factors of production and to make all or most production and allocation decisions.

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?

If the equilibrium point of 5-for-1 Pizza is 2000 pizzas per week and $10.00 per pizza, and the owner decides to make 1900 pizzas and sell them at the same price, what is the likely outcome?

The reasons why the government regulates many aspects of business activity include protecting competition, protecting consumers, achieving social goals, and protecting the environment.

There is general agreement that the bailout of Canadian automakers in 2009 was a good decision.

Competition like that between Tide and Cheer, Coke and Pepsi, and Sears and Ralph Lauren is

Describe monopolistic competition in terms of the number of competitors, ease of entry into the market, similarity of goods/services offered by competing firms, and level of control over price by individual firms. Give an example of a market or industry characterized by monopolistic competition.

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years. The firm decides to expand its battery production. This illustrates

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, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters