Exam 3: Economics: The Framework for Business

Most business enterprises in Canada are privately owned, but the federal government owns a number of major enterprises (e.g., Canada Post, VIA Rail, etc.). This suggests that the Canadian economy would be best classified as what type of economy?

Which of the following is the measurement of the total value of all goods and services produced within a nation's borders over a given period of time?

Which of the following will the devaluation of the Canadian dollar encourage?

The study of economics falls into two broad categories called meta-economics and econometrics.

An economic system is a structure for allocating limited resources.

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

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

Which of the following refers to the government's efforts to influence the economy through taxation and spending decisions designed to encourage growth and boost employment?

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

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

The M1 money supply consists solely of currency (coins and paper money) issued by the government.

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

In the broadest sense, what does economics study?

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

What are the two key terms of the business cycle?

An economy is both a social and a financial system.

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

The Canadian federal government creates regulations that prohibit competition and stimulate consumers to work.

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

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