Exam 4: Economics: the Framework for Business

Manufacturing jobs have migrated overseas due to increased productivity and low wages of workers in other countries.What type of unemployment does this cause in Canada?

Less expensive labour pools overseas might create layoffs at a Canadian-based engine plant.This is an example of structural unemployment.

Unfortunately,depressions are a common problem in most free-market economies.

What would be different in a socialist system when compared to capitalism?

The price paid for goods and services will rise when the quantity demanded exceeds quantity supplied.

Brooklyn's Beachfront Bed and Breakfast loses money due to a sharp drop in the number of guests during the winter months.If Brooklyn's demand curve is like most demand curves,one way to attract more guests would be to offer lower rates during the off-season.

Government policies promoting free trade are consistent with the right to free choice,which is fundamental to capitalism.

Many countries that have restructured to become more market-oriented have seen dramatic increases in the standard of living for most of their people.

In recent years,what has been the most common reason for tax reforms in formerly planned economies?

With the tragedy of the 9/11 attacks and the devastation of Hurricane Katrina,workers in both New York City and New Orleans experienced what type of unemployment?

In capitalism people strive to raise their standard of living.How do businesses contribute to this goal?

Consumers will see prices fall when the quantity demanded exceeds quantity supplied.

The economic restructuring necessary to move toward greater reliance on markets has proven to be relatively easy for most previously planned economies to achieve.

Gross domestic product (GDP),as the measurement of the total value of goods and services,includes the output produced within households and output produced by illegal activities.

An entrepreneur with limited funds who wants to start a new business would probably be most successful in an oligopolistic market,because the amount of competition in such markets is very limited.

From the business perspective,what is a key reason to study economics?

An economy is said to be in a recession when GDP decreases for two consecutive quarters.

The Canadian government is the nation's largest employer.

In which situation does the federal government run a budget deficit?

Which of the following would microeconomic analysis be best suited for?