Question 1

Contraction is a period of economic downturn marked by rising unemployment,business cutbacks,and decreases in consumer spending.

Accepted Answer

A) True 
 B)False

Question 2

Individuals quitting their jobs experience structural unemployment.

Accepted Answer

A) True 
 B)False

Question 3

Privatization is an important element of the movement toward a greater market orientation in many nations.

Accepted Answer

A) True 
 B)False

Question 4

The North Korean and Cuban governments still own most of their nation's enterprises and actively control the performance of their nation's economies.

Accepted Answer

A) True 
 B)False

Question 5

In 1999,Coca-Cola considered a plan to install thermometers in vending machines that would charge more for cold beverages on particularly hot days.If the demand curve for Coke is like most demand curves,what would the result have been on hot days?

Accepted Answer

A) an increase in the available supply of competing soft drinks 
B) a shortage of Coca Cola 
C) a lower quantity of Coke demanded than at the lower price 
D) no effect on the amount of Coke consumers would buy 
A) an increase in the available supply of competing soft drinks 
B) a shortage of Coca Cola 
C) a lower quantity of Coke demanded than at the lower price 
D) no effect on the amount of Coke consumers would buy

Question 6

What is the Bank of Canada primarily responsible for conducting?

Accepted Answer

A) monetary policy 
B) fiscal policy 
C) treasury policy 
D) tax policy 
A) monetary policy 
B) fiscal policy 
C) treasury policy 
D) tax policy

Question 7

In the broadest sense,what does economics study?

Accepted Answer

A) what companies make in producing goods and services for corporate use 
B) what governments make in creating natural resources 
C) what people, governments, and companies make in allocating resources 
D) what people make in disposing of unnecessary resources 
A) what companies make in producing goods and services for corporate use 
B) what governments make in creating natural resources 
C) what people, governments, and companies make in allocating resources 
D) what people make in disposing of unnecessary resources

Question 8

The value of a Hyundai Sonata built in Ontario would be included in Canadian GDP even though Hyundai is actually a Korean corporation.

Accepted Answer

A) True 
 B)False

Question 9

In the business cycle,what is the term for a period of rising economic growth and increasing employment?

Accepted Answer

A) peak 
B) recovery 
C) contraction 
D) disinflation 
A) peak 
B) recovery 
C) contraction 
D) disinflation

Question 10

What do firms in oligopolistic markets tend to do?

Accepted Answer

A) have very small market shares 
B) avoid price competition whenever possible 
C) worry about the possibility of new firms entering their market 
D) keep prices as low as possible 
A) have very small market shares 
B) avoid price competition whenever possible 
C) worry about the possibility of new firms entering their market 
D) keep prices as low as possible

Question 11

The ideas of political philosopher Karl Marx are most closely linked to what type of economic system?

Accepted Answer

A) socialism 
B) capitalism 
C) communism 
D) mercantilism 
A) socialism 
B) capitalism 
C) communism 
D) mercantilism

Question 12

The predictable nature of the business cycle makes it easy to forecast when the next upturn or downturn in business activity will occur.

Accepted Answer

A) True 
 B)False

Question 13

How do banks help increase the money supply?

Accepted Answer

A) They send more money to the Bank of Canada. 
B) They hold more money in their accounts with the Bank of Canada. 
C) They print more money. 
D) They extend loans to credit-worthy consumers. 
A) They send more money to the Bank of Canada. 
B) They hold more money in their accounts with the Bank of Canada. 
C) They print more money. 
D) They extend loans to credit-worthy consumers.

Question 14

What are the items included in the CPI's "market basket" chosen to represent?

Accepted Answer

A) goods and services bought by the business sector 
B) the cost of government-supplied goods and services 
C) goods and services bought by the average consumer 
D) all goods and services produced by domestic businesses 
A) goods and services bought by the business sector 
B) the cost of government-supplied goods and services 
C) goods and services bought by the average consumer 
D) all goods and services produced by domestic businesses

Question 15

An economy is both a social and a financial system.

Accepted Answer

A) True 
 B)False

Question 16

The study of economics focuses on how people,businesses,and governments choose to allocate resources.

Accepted Answer

A) True 
 B)False

Question 17

What is supply? How can the supply relationship be illustrated? What is demand? How can this relationship be illustrated? How can supply and demand be used to determine the market price of a good?

Accepted Answer

Supply: Supply refers to the quantity of

Question 18

Define the four degrees of competition.Include at least one example for each.

Accepted Answer

Pure competition: A market structure wit

Question 19

The government often allows only one company to provide electricity in a given geographic area because allowing several companies to do so would result in an inefficient duplication of infrastructure.What does this suggest about electric utilities?

Accepted Answer

A) they are natural monopolies 
B) they are oligopolies 
C) they are duopolies 
D) they are pure players 
A) they are natural monopolies 
B) they are oligopolies 
C) they are duopolies 
D) they are pure players

Question 20

Market equilibrium is the point at which the supply curve intersects the demand curve.

Accepted Answer

A) True 
 B)False

Exam 4: Economics: the Framework for Business

Contraction is a period of economic downturn marked by rising unemployment,business cutbacks,and decreases in consumer spending.

Individuals quitting their jobs experience structural unemployment.

Privatization is an important element of the movement toward a greater market orientation in many nations.

The North Korean and Cuban governments still own most of their nation's enterprises and actively control the performance of their nation's economies.

In 1999,Coca-Cola considered a plan to install thermometers in vending machines that would charge more for cold beverages on particularly hot days.If the demand curve for Coke is like most demand curves,what would the result have been on hot days?

What is the Bank of Canada primarily responsible for conducting?

In the broadest sense,what does economics study?

The value of a Hyundai Sonata built in Ontario would be included in Canadian GDP even though Hyundai is actually a Korean corporation.

In the business cycle,what is the term for a period of rising economic growth and increasing employment?

What do firms in oligopolistic markets tend to do?

The ideas of political philosopher Karl Marx are most closely linked to what type of economic system?

The predictable nature of the business cycle makes it easy to forecast when the next upturn or downturn in business activity will occur.

How do banks help increase the money supply?

What are the items included in the CPI's "market basket" chosen to represent?

An economy is both a social and a financial system.

The study of economics focuses on how people,businesses,and governments choose to allocate resources.

What is supply? How can the supply relationship be illustrated? What is demand? How can this relationship be illustrated? How can supply and demand be used to determine the market price of a good?

Define the four degrees of competition.Include at least one example for each.

The government often allows only one company to provide electricity in a given geographic area because allowing several companies to do so would result in an inefficient duplication of infrastructure.What does this suggest about electric utilities?

Market equilibrium is the point at which the supply curve intersects the demand curve.

Business Now: Change Is the Only Constant

Business Communication: Creating and Delivering Messages That Matter

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Formation: Choosing the Form That Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Securities Markets : Trading Financial Resources

Marketing: Building Profitable Customer Connections

Part 1: Product and Promotion: Creating and Communicating Value

Part 2: Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, right Person, right Place, right Price

Management, motivation, and Leadership: Bringing Business to Life

Human Resource Management: Building a Top-Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

The World Marketplace: Business Without Borders

Labour-Management Relations

Business Law

Personal Finance

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