Question 1

Freedom of choice directly feeds competition.

Accepted Answer

A) True 
 B)False

Question 2

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 3

M2 money supply includes all of M1 money supply plus most savings accounts, money and market accounts, and certificates of deposit.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

What are the four basic types of unemployment?

Accepted Answer

A)  recovery, expansion, contraction, and stagnation 
B)  natural, artificial, voluntary, and induced 
C)  micro, macro, industrial, and market-specific 
D)  cyclical, seasonal, structural, and frictional 
A)  recovery, expansion, contraction, and stagnation 
B)  natural, artificial, voluntary, and induced 
C)  micro, macro, industrial, and market-specific 
D)  cyclical, seasonal, structural, and frictional

Question 7

In some areas of the country, construction and agricultural workers are seasonally unemployed.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Explain the difference between monetary and fiscal policy. Explain how each policy is implemented (enacted).

Accepted Answer

Fiscal policy refers to government effor

Question 10

What do banks do to help increase the money supply?

Accepted Answer

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

Question 11

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 12

A strength of communist economies 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 13

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 14

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 offering customers the right to choice. 
A)  They are natural monopolies. 
B)  They are oligopolies. 
C)  They are duopolies. 
D)  They are offering customers the right to choice.

Question 15

The social economy is considered the perfect economic system.

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

Discuss two negatives of planned economies.

Accepted Answer

Although the official government goal is

Question 18

Financial or social systems are not essential to the development of a strong economy.

Accepted Answer

A) True 
 B)False

Question 19

Which statement best describes the result of competition among businesses?

Accepted Answer

A)  It ensures that everyone is a winner. 
B)  It drives higher quality and lower prices in capitalism. 
C)  It is a primary feature of a communist economic system. 
D)  It is consistent with the goals of socialism. 
A)  It ensures that everyone is a winner. 
B)  It drives higher quality and lower prices in capitalism. 
C)  It is a primary feature of a communist economic system. 
D)  It is consistent with the goals of socialism.

Question 20

In which of the following systems do firms compete by selling differentiated products?

Accepted Answer

A)  monopolistic competition 
B)  natural monopoly 
C)  monopoly 
D)  oligopoly 
A)  monopolistic competition 
B)  natural monopoly 
C)  monopoly 
D)  oligopoly

Freedom of choice directly feeds competition.

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

M2 money supply includes all of M1 money supply plus most savings accounts, money and market accounts, and certificates of deposit.

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

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

What are the four basic types of unemployment?

In some areas of the country, construction and agricultural workers are seasonally unemployed.

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

Explain the difference between monetary and fiscal policy. Explain how each policy is implemented (enacted).

What do banks do to help increase the money supply?

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

A strength of communist economies is that it is likely to grow rapidly and produce enough products and services to support its people in the long term.

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

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?

The social economy is considered the perfect economic system.

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.

Discuss two negatives of planned economies.

Financial or social systems are not essential to the development of a strong economy.

Which statement best describes the result of competition among businesses?

In which of the following systems do firms compete by selling differentiated products?

Business Now: Change Is the Only Constant

Business Ethics and Social Responsibility: Doing Well by Doing Good

The World Market-Place: Business Without Borders

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

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

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

Business Communication: Creating and Delivering Messages That Matter

Labour Unions and Collective Bargaining

Business Law

Personal Finance

Filters

Exam 3: Economics: The Framework for Business

Freedom of choice directly feeds competition.

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

M2 money supply includes all of M1 money supply plus most savings accounts, money and market accounts, and certificates of deposit.

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

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

What are the four basic types of unemployment?

In some areas of the country, construction and agricultural workers are seasonally unemployed.

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

Explain the difference between monetary and fiscal policy. Explain how each policy is implemented (enacted).

What do banks do to help increase the money supply?

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

A strength of communist economies is that it is likely to grow rapidly and produce enough products and services to support its people in the long term.

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

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?

The social economy is considered the perfect economic system.

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.

Discuss two negatives of planned economies.

Financial or social systems are not essential to the development of a strong economy.

Which statement best describes the result of competition among businesses?

In which of the following systems do firms compete by selling differentiated products?

Business Now: Change Is the Only Constant

Business Ethics and Social Responsibility: Doing Well by Doing Good

The World Market-Place: Business Without Borders

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

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

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

Business Communication: Creating and Delivering Messages That Matter

Labour Unions and Collective Bargaining

Business Law

Personal Finance

Filters