Question 1

Capitalism places paramount importance on the need for the government to intervene in the economy to ensure a fair and equitable distribution of income.

Accepted Answer

A) True 
 B)False

Question 2

By the end of the 1980s,communism began collapsing in the Soviet Union and its satellite nations.

Accepted Answer

A) True 
 B)False

Question 3

Explain how macroeconomics differs from microeconomics.Illustrate these differences by identifying some specific topics these two branches would examine.

Accepted Answer

Macroeconomics is the study of a country

Question 4

A strength of a pure planned economy is that it is likely to grow rapidly and produce enough products and services to support its people in the long term.

Accepted Answer

A) True 
 B)False

Question 5

Both producers and consumers are free to make their own economic decisions on many basic issues.What type of system does this statement best describe?

Accepted Answer

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

Question 6

In which of the following situations is an economy experiencing hyperinflation?

Accepted Answer

A) a decrease of more than 50% per day 
B) an increase of more than 50% per month 
C) an increase of more than 100% in a year 
D) a decrease of more than 100% in a year 
A) a decrease of more than 50% per day 
B) an increase of more than 50% per month 
C) an increase of more than 100% in a year 
D) a decrease of more than 100% in a year

Question 7

What does the federal government do in order to stimulate competition and protect both consumers and workers?

Accepted Answer

A) It places heavy taxes on firms in monopolistic competition. 
B) It creates business systems to meet the needs of all consumers. 
C) It creates regulations to intervene in the free market. 
D) It places limits on international trade in order to stimulate domestic production. 
A) It places heavy taxes on firms in monopolistic competition. 
B) It creates business systems to meet the needs of all consumers. 
C) It creates regulations to intervene in the free market. 
D) It places limits on international trade in order to stimulate domestic production.

Question 8

The Rainland government enjoys a socialist economic system,but in recent years has found that new business growth has stalled.In an effort to stimulate more growth,what will the government probably do?

Accepted Answer

A) create regulations giving consumers and workers more protection 
B) reduce taxes and cut back on some social programs 
C) take over most new businesses and operate them as government enterprises 
D) increase the number of citizens who qualify for free education and healthcare 
A) create regulations giving consumers and workers more protection 
B) reduce taxes and cut back on some social programs 
C) take over most new businesses and operate them as government enterprises 
D) increase the number of citizens who qualify for free education and healthcare

Question 9

Gross domestic product (GDP)measures the total value of all goods and services produced within a nation's physical boundaries over a given period of time.

Accepted Answer

A) True 
 B)False

Question 10

Explain the reason for the current trend toward a mixed market system.Include in your answer examples of this trend.

Accepted Answer

Virtually all nations have mixed economi

Question 11

Gross domestic product (GDP)tends to overstate the amount of output produced by a nation's economy.

Accepted Answer

A) True 
 B)False

Question 12

If the cost of an ice-cold Coke is more expensive during the summer months,how will this affect consumers' purchasing behaviour?

Accepted Answer

A) They will not buy at Coke all. 
B) They will buy less due to the increase in price. 
C) They will buy no more or less due to the increase in price. 
D) They will buy more due to the increase in price. 
A) They will not buy at Coke all. 
B) They will buy less due to the increase in price. 
C) They will buy no more or less due to the increase in price. 
D) They will buy more due to the increase in price.

Question 13

What is a business cycle? Describe the basic phases of a typical business cycle.

Accepted Answer

The business cycle is the periodic expan

Question 14

What is occurring when prices on average are rising?

Accepted Answer

A) disinflation 
B) deflation 
C) hyperinflation 
D) inflation 
A) disinflation 
B) deflation 
C) hyperinflation 
D) inflation

Question 15

Constant change has been the most predictable economic force over the last few decades.

Accepted Answer

A) True 
 B)False

Question 16

Which statement best describes the federal government in Canada?

Accepted Answer

A) It consistently runs a budget surplus since it operates most of its enterprises at a profit. 
B) It plays only a very minor role in the economy. 
C) It is the nation's largest employer, providing jobs for many Canadians. 
D) It has been very reluctant to regulate business behaviour. 
A) It consistently runs a budget surplus since it operates most of its enterprises at a profit. 
B) It plays only a very minor role in the economy. 
C) It is the nation's largest employer, providing jobs for many Canadians. 
D) It has been very reluctant to regulate business behaviour.

Question 17

What are the fundamental rights of capitalism? Include an example of each to support your answer.

Accepted Answer

The right to own a business and keep aft

Question 18

Which of the following refers to actions that shape the economy by influencing interest rates and the supply of money?

Accepted Answer

A) deficit policy 
B) fiscal policy 
C) revenue policy 
D) monetary policy 
A) deficit policy 
B) fiscal policy 
C) revenue policy 
D) monetary policy

Question 19

The two most common types of real-world economies are pure capitalism and pure socialism.

Accepted Answer

A) True 
 B)False

Question 20

What is an economic system a structure for?

Accepted Answer

A) allocating limited resources 
B) forecasting trends 
C) government 
D) measuring gross domestic products 
A) allocating limited resources 
B) forecasting trends 
C) government 
D) measuring gross domestic products

Exam 4: Economics: the Framework for Business

Capitalism places paramount importance on the need for the government to intervene in the economy to ensure a fair and equitable distribution of income.

By the end of the 1980s,communism began collapsing in the Soviet Union and its satellite nations.

Explain how macroeconomics differs from microeconomics.Illustrate these differences by identifying some specific topics these two branches would examine.

A strength of a pure planned economy is that it is likely to grow rapidly and produce enough products and services to support its people in the long term.

Both producers and consumers are free to make their own economic decisions on many basic issues.What type of system does this statement best describe?

In which of the following situations is an economy experiencing hyperinflation?

What does the federal government do in order to stimulate competition and protect both consumers and workers?

The Rainland government enjoys a socialist economic system,but in recent years has found that new business growth has stalled.In an effort to stimulate more growth,what will the government probably do?

Gross domestic product (GDP)measures the total value of all goods and services produced within a nation's physical boundaries over a given period of time.

Explain the reason for the current trend toward a mixed market system.Include in your answer examples of this trend.

Gross domestic product (GDP)tends to overstate the amount of output produced by a nation's economy.

If the cost of an ice-cold Coke is more expensive during the summer months,how will this affect consumers' purchasing behaviour?

What is a business cycle? Describe the basic phases of a typical business cycle.

What is occurring when prices on average are rising?

Constant change has been the most predictable economic force over the last few decades.

Which statement best describes the federal government in Canada?

What are the fundamental rights of capitalism? Include an example of each to support your answer.

Which of the following refers to actions that shape the economy by influencing interest rates and the supply of money?

The two most common types of real-world economies are pure capitalism and pure socialism.

What is an economic system a structure for?

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

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