Exam 3: Economics: The Framework for Business

Broad economic trends in employment, inflation, and economic growth provide a context that has an important impact on your day-to-day life.

Macroeconomic conditions impact day-to-day life by influencing variables such as the availability of jobs, the amount of take-home pay households have available after paying taxes, and the buying power of those incomes.

The Bank of Canada helps guide the economy by depositing funds at specific annual intervals into citizens' personal bank accounts.

Marian's Moped and Bicycle Store is located on the property of a five-star resort in Alberta. The mopeds and bikes are rented based on one-hour increments. Marian lowers her standard prices to attract patrons during daily rainstorms in June and August. This is an example of decreasing supply.

When does deflation occur?

The Canadian government is the nation's largest employer.

Fiscal policy helps control interest rates and the supply of money.

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

Identify and explain the two of the three key tools the Bank of Canada uses to expand and contract the money supply.

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

The unemployment rate includes everyone who doesn't have a job, such as stay-at-home parents and retired persons.

The Bank of Canada attempts to reduce the money supply when prices begin to rise.

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

Competition encourages companies to operate efficiently and responsively. The government does its part to stimulate fair competition by creating regulations to protect consumers and workers.

Individuals quitting their jobs experience structural unemployment.

Discuss how the Bank of Canada's open market operations work to expand and contract the money supply.

What is the primary way the Bank of Canada controls the supply of money?

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

What does the government use to evaluate the impact of inflation?

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