Exam 1: Understanding the Canadian Business System

Executives at Kelsey Corp.are arguing about whether or not they should increase prices for the company's products by 15-20 percent.Which of the following could be used as an argument against increasing prices?

One of the main advantages of the mass production system in factories was that it avoided costly duplication of machinery.

A mixed market economy has elements of both a command economy and a market economy.

The ________ philosophy says that the government should not interfere in the economy,but should instead let business function without regulation according to its own "natural" laws.

In 2011,the Canada Consumer Product Safety Act came into effect.One of the concerns expressed about the Act was that

5-for-1 Pizza is operating at the point where the supply curve intersects the demand curve.If the owner decides to increase the price and not change the production level,what will result?

Natural resources,as a factor of production for mining,are a practical consideration when a mining company considers

The point on a demand and supply schedule where supply and demand are equal is known as the break-even point.

A natural monopoly exists when a single company can fill the needs of all customers in a specific area.

Coke and Pepsi are competitors within an oligopoly.

Briefly trace the development of business in Canada from the early colonial years to the present day.

Profits from business are used to support government as well as business owners and shareholders.

Describe perfect competition in terms of the number of competitors,ease of entry into the market,similarity of goods/services offered by competing firms,and level of control over price by individual firms.Give an example of a purely competitive market or industry.

Describe the four degrees of competition that can exist in a private enterprise system.

A motive to start a business is ________,while ________ creates the need to run the business efficiently.

Private property rights are an essential element of a communist economic system.

Communism and socialism are both types of command economies.

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called

In Canada,government does not own and operate any business firms.

Harcourt Corporation is one of only five firms that make and distribute playground equipment.This illustrates which degree of competition?