Exam 4: Economics: the Framework for Business

A typical supply curve shows that an increase in the price of a good will cause producers to decrease the quantity they supply.

Which term describes a period in which GDP declines for at least two consecutive quarters?

Which of the following is NOT a degree of competition?

What is unemployment? Identify and describe the four types and each one's effect on the economy.

Federal law has made all types of monopolies illegal in Canada.

Denise is a hard worker,but within the last year she and her boss have not seen eye to eye.Angela,her boss,has become more demanding and harder to reach to get clarification on projects.After one too many long working days with little or no job satisfaction,Denise walks into Angela's office and submits her resignation.Denise knows that her résumé is strong and feels confident she will find work.Which type of unemployment is Denise now facing?

Frictional unemployment may occur even when the economy is healthy,and may ultimately result in a better match between workers and jobs.

Competition encourages companies to operate efficiently and responsively.The government does its part to stimulate fair competition by creating regulations to protect consumers and workers.

Into which two core categories is the study of economics divided?

What is the primary way the Bank of Canada controls the supply of money?

Explain how the Bank of Canada can use the reserve requirement to influence interest rates and the availability of loans.Why is the Bank of Canada reluctant to make frequent changes in the reserve requirement?

What should the Bank of Canada do if it wants to increase the money supply?

Luke is taking an economics class that focuses on decisions made by individual business firms and consumers.Luke's class is concerned with microeconomic issues.

The government of Puritania has begun a program to restructure of the economy,with a goal of moving toward a more market-oriented system.Which of the following is LEAST likely to occur as the result of this restructuring?

Which of the following is NOT a fundamental right of capitalism?

What decreases when it takes more resources (inputs)to produce a given amount of goods and services (outputs)than in the past?

In the Canadian economy,various branches of government own major enterprises such as the postal service,schools,parks,libraries,universities,and the military.

During the peak season,retail workers are hired in great numbers to meet the demands of holiday shoppers.At the end of the holiday season many of those workers are released from their jobs,thus creating seasonal unemployment.

Martha has noticed that the CPI has increased by 7% over the past year.What is the best conclusion for Martha to make based on this information?

The unemployment rate includes only individuals over the age of 21 who were involuntarily laid off or fired from their previous jobs.