Exam 3: Economics: The Framework for Business

The devaluation of the Canadian dollar means that American tourists will come in increasing numbers to Canada.

During the second half of the 20th century the economies of many European nations became more socialistic, especially when compared to the economy of Canada. What does this suggest that these European countries had that was different than in Canada?

In a planned economy, the government plays only a minor role in the operation of the economy.

The devaluation of the Canadian dollar means that Canadians will vacation more often in the United States.

One of Coca-Cola's slogans is "It's the real thing" and one of Pepsi's slogans is "The choice of a new generation." This is an example of which type of competition?

How would the economies of virtually all nations today be classified?

When General Motors introduced a promotion offering customers the employee discount prices for any vehicle, Chrysler and Ford followed the trend and offered the same program. This intense price competition among the three major automobile producers resulted in lower profits for all three companies. This outcome illustrates a problem for firms in what type of economic structure?

The federal government experiences a budget deficit when its revenue from taxes is higher than its expenditures.

To measure productivity, multiply the number of inputs by the cost of each input.

In the Canadian economy, various branches of government own major enterprises such as the postal service, schools, parks, libraries, universities, and the military.

Martha has noticed that the CPI has increased by 7 percent over the past year. What is the best conclusion for Martha to make based on this information?

What is one reason why pure market economies are non-existent?

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

Recovery is a period of increasing employment, business expansion, and increased consumer spending.

Equilibrium quantity occurs when the quantity supplied is equal to quantity demanded.

Abraham Lincoln once stated, "You cannot help the poor by destroying the rich. You cannot lift the wage earner by pulling down the wage payer." This quote is most consistent with what type of economic philosophy?

Privatization is the conversion of government-owned enterprises to private ownership.

Which two core categories is the study of economics divided into?

What do we call the process of converting government-owned businesses to private ownership?

A typical supply curve shows that an increase in the price of a good will cause producers to decrease the quantity they supply.