Deck 2: Ethics and Capitalism

Question 1

Intellectual property,such as an artist's ownership of music,is becoming increasingly important in Canada.

Answer 1

True

Question 2

Canada primarily operates in a private market system.

Answer 2

True

Question 3

Economic freedom does not address the rights of individuals,only of business enterprises.

Answer 3

False

Question 4

Much of the theory of the classical capitalist system is based on the philosophical underpinnings of the American system,but is equally applicable to the Canadian economy.

Question 5

It is easier to achieve equity than equality.

Question 6

Capitalism requires a strong ethical system,as without it,the justice system will intervene.

Question 7

Capitalism assumes that competition is both natural and desirable.

Question 8

Equality is inevitable with a capitalistic system.

Question 9

A land developer has been receiving considerable negative publicity.He purchased the majority of residential properties in a district of the city and raised the rents.The lower income renters were unable to pay the demanded rent and had to relocate.The developer's right to private property does not allow him to essentially evict lower income renters as this may infringe upon their rights.

Question 10

"It's my land!" exclaimed the farmer,responding to the environmentalists."If I want to cut down every single tree on it,this is my right." The farmer is claiming the fundamental right of capitalism-the right of private property.

Question 11

A monopoly occurs when there are few sellers in an industry and these sellers behave similarly.

Question 12

The barriers to entry existing in many industries and the need for increasing size to achieve efficiency may have led to profits higher than normal under perfect competition.

Question 13

Competition ensures that if excessive profits are made,others will be attracted to the industry.

Question 14

The gap between executive compensation and worker compensation has declined.

Question 15

Fortunately in Canada there is an even distribution of wealth among members of society.

Question 16

It is argued that the private system is less cumbersome and less costly to run than a centralized,government-operated system,and that it is more responsive to society's needs because it allows individuals and business corporations to be more innovative.

Question 17

The barriers to entry existing in many industries and the need for increasing size to achieve efficiency may have led to profits lower than normal under perfect competition.

Question 18

According to the work ethic,unemployment is a temporary,misfortunate event.

Question 19

The individualism view of capitalism assumes that individuals are inherently self-serving,but neither decent nor rational.

Question 20

Most of the natural resources in Canada are privately owned.

Question 21

Canada's economic system is capable of taking into consideration social and ethical concerns.

Question 22

Frontier capitalism is practised in the United States.

Question 23

Canada practises consumer capitalism.

Question 24

Those who question the degree of consumer sovereignty in Canada argue that governments influence or regulate in the "public interest," which frequently is more in the "producer interest."

Question 25

Employees at ABC Corporation own shares in the company.This is referred to as "employee capitalism."

Question 26

In recent years,there has been less government involvement in the Canadian economy.

Question 27

The Protestant ethic claims,in part,that being thrift through saving is an element of God's will.

Question 28

The "patched up" system,or mixed economy that exists in Canada is the best that can be expected,given human limitations and a democratic government.

Question 29

The government's role in the Canadian economy is often described as laissez-faire.

Question 30

Innovation is accelerated within a producer capitalism system.

Question 31

Germany practises "stakeholder capitalism," a form of producer capitalism.

Question 32

The government has a stronger role in consumer capitalist systems than in frontier capitalist systems.

Question 33

Government involvement in the market,for reasons other than laws relating to contractual arrangements is considered to weaken efficiency.

Question 34

It is consumers' evaluation of a business that determines whether or not it will survive.

Question 35

Competition legislation makes some types of trade practices illegal and attempts to encourage monopolization.

Question 36

Co-determination takes place in producer capitalist systems.

Question 37

The more competitive a market,the lower the power of the consumer.

Question 38

Government involvement in the economy has always been greater in Canada than in the United States.

Question 39

In modern society,the desire to consume is a driving force which compels many individuals to work hard to acquire material possessions.The result is a consumption ethic in this generation of workers.

Question 40

State capitalism involves market manipulation.

Question 41

JKM Corporation has decided to relocate its factory to a remote,rural location.The current employees are dismayed and are asking their employee to reconsider.JKM states that they can and will relocate their business wherever they choose.JKM Corporation is asserting which fundamental element of capitalism?

A) Right to personal property
B) Competition
C) Individualism and Economic freedom
D) Equality of opportunity
E) Profit maximization

Question 42

Which of the following are advantages of competition?

A) Competition lowers costs.
B) Competition reduces waste and inefficiency.
C) Competition widens the choice of goods and services provided to consumers.
D) Competition holds profits to a minimum.
E) All of the above are advantages of competition.

Question 43

Which of the following is true of the capitalist system?

A) The market system coordinates economic activity.
B) It is less cumbersome then a government-operated system.
C) It is less costly than a government-operated system.
D) It is more responsive to society's needs.
E) All of the above are true of a capitalist system.

Question 44

As of 2009,a majority of Canadians trusted business less than the year before.

Question 45

According to Bill Gates of Microsoft Corp.,creative capitalism would discover new,innovative ways to solve the problems of the poorest by combining self-interest (or individualism) and caring for others.

Question 46

The resolution of social needs is the primary goal of economic activity under creative capitalism.

Question 47

Which of the following statements regarding competition,as a fundamental element of capitalism,is not true?

A) Competition is responsible for the orderly operation of the market.
B) The fittest firms tend to survive.
C) Competition ensures that goods and services are provided at the lowest price.
D) Competition holds profits to a minimum.
E) Capitalism guarantees a profit is made.

Question 48

Marketing boards in Canada have effectively done all of the following,except:

A) restrict competition
B) use tariffs to restrict entry
C) lower prices
D) increased prices in the face of declining demand
E) reduced consumer choice

Question 49

All of the following are true concerning the government of Canada,except:

A) owns most natural resources, even if they are on private property.
B) controls property through regulations and restrictions.
C) redistributes wealth through taxation.
D) can expropriate private property.
E) cannot expropriate any property.

Question 50

The municipal government has determined that it wants to expand a popular walking trail system that runs through the city.This city issues a notice to the effected landowners stating that it is claiming this land and that the landowners will receive an assessment of the value of their land and payment.Can the government do this?

A) Yes, the government has eminent domain over the property and fair price is offered.
B) Yes, the government ultimately owns all property in Canada.
C) No, the government cannot do this as it violates the fundamental right to ownership of private property.
D) No, the government cannot do this, unless the owner voluntarily relinquishes the land.
E) It depends on the municipality.

Question 51

Marco is delighted to finally have purchased his own car.He washes it weekly and always ensures that it is well maintained.His father is shocked at how well Marco is looking after the car; whenever he used to borrow his father's car,Marco would neglect its care.Marco's care for his own car exemplifies that the right to private property,within a capitalist system,results in all of the following except:

A) greater control over one's own destiny
B) pride taken in ownership results in better care being taken of one's own property
C) a sense of security
D) respect for the property of others

Question 52

Self-interest can be a benefit of capitalism.

Question 53

A capitalist system requires a strong system of ethical behaviour,as without it:

A) profits fail to exist
B) competitive rivalry is limited
C) monopolies control the market
D) the government must intervene and regulate markets
E) hoarding occurs

Question 54

Much of the theory of the classical capitalist system is based on the philosophical underpinnings of:

A) Marxist theory.
B) the Communist Manifesto.
C) the Wealth of Nations.
D) the European market model.
E) the American system.

Question 55

Denise,the owner of an Internet company,is relocating the business to Toronto.Her employees all believe that she should have considered their needs in this decision as they are part of the team that has made the business successful and that customers in the community will be hurt by this move.The employees are applying the principle of __________ in asking her to consider their request.

A) individualism
B) communitarianism
C) consumer sovereignty
D) team building
E) collectivism

Question 56

The taxation system in Canada is considered progressive.This means that those who earn higher income are taxed at a higher rate than are those with lower income.This approach reflects a movement towards ______________ as a priority in Canada.

A) equality of opportunity
B) equality of results
C) individualism
D) oligopoly
E) regression

Question 57

"It's a level playing field," said the executive to the new hires."No matter where you went to school,you will succeed here based on what you do starting today.It is all up to you." This sentiment expresses the __________ assumption of capitalism.

A) individualism
B) intellectual property
C) equality of opportunity
D) right to personal property
E) profit maximization

Question 58

Driving to university on Monday morning,Mary noticed that all the gasoline retail stations she passed were selling gasoline at exactly the same price,right down to the decimal point.There are very few sellers of gasoline in her city and they set the price at comparable levels.This is an example of _________.

A) competition
B) monopoly
C) oligopoly
D) profit
E) price-fixing

Question 59

Frank,the owner of a manufacturing company,is explaining to the employees that the relocation of the factory to a small,rural community will be beneficial to the company.He believes that each employee can decide for him or herself whether to relocate,as it was his own right to choose to relocate his business.Frank is asserting the principle of ____________.

A) Individualism
B) Equality of opportunity
C) Intellectual property
D) Right to personal property
E) Profit maximization

Question 60

Canadian governmental regulation on telecommunications,transportation,and banking industries does all of the following,except:

A) restrict competition
B) restricts foreign ownership
C) increases competition
D) restricts entry to the industry
E) reduced consumer choice

Question 61

Which of the following statements accurately reflects one view of the work ethic of the Millennials?

A) The Net Generation of workers are spoiled and lazy.
B) The Millennials spend too much time social networking.
C) They are difficult to manage.
D) They have a tendency to plagiarize.
E) All of the statements accurately reflect one view of today's Millennials' workforce.

Question 62

Sometimes consumers face challenges in exercising their sovereignty because:

A) some product classes have few choices.
B) they are not capable of understanding the technical complexities of some products.
C) they lack information about available alternatives.
D) large corporations influence consumers' preferences through advertising.
E) All of the able are reasonable challenges face by individuals in exercising their sovereignty.

Question 63

A recent trip to the grocery store was disappointing for Robert.He discovered that his favourite brand of canned salmon was no longer being carried.When he asked the store manager,he was told that customers were not buying the product in sufficient quantities to allow them to continue to stock it.This is an example of ______________,which is a fundamental part of capitalism.

A) consumer sovereignty
B) competition
C) equality of opportunity
D) work ethic
E) economic freedom

Question 64

"Wa," or harmony,is an essential element of Japanese culture and is reflected in the importance of relationship and teamwork in business operations.Canadian businesspersons must understand that they are outsiders within this system.The Japanese operate under _________ capitalism.

A) consumer
B) producer
C) family
D) frontier
E) None of the answers.

Question 65

Some critics are skeptical about the merits of the capitalist economic system.They point to which of the following as evidence of corruption resulting from the capitalist system?

A) The financial crisis of 2008-2009
B) Economic recessions
C) Corporate crime
D) Ethical scandals
E) All of the above are evidence of corruption inherent in the capitalist system.

Question 66

The exchange student's presentation to the Canadian university class is certainly increasing the students' knowledge of other capitalist systems."The government of our country," the student begins,"has been dismantling protectionist policies that created trade barriers with other nations.But we still need them to help limit the criminal activity of crime families that is often confused with the entrepreneurialism spirit,which is becoming increasingly valued in our country." The exchange student is from __________ where the ___________ model of capitalism is currently exercised.

A) Taiwan, frontier
B) China, family
C) Japan, family
D) China, frontier
E) Taiwan, family

Question 67

All of the following are examples of government involvement in the Canadian economy,except:

A) national security
B) price determination of consumer electronics
C) currency system
D) measures
E) taxation

Question 68

The form of capitalism that emphasizes production,employment,and statist policies is:

A) consumer
B) producer
C) family
D) frontier
E) None of the answers.

Question 69

Which form of capitalism is relatively new and places the resolution of social needs as the primary goal?

A) Consumer
B) Producer
C) Family
D) Frontier
E) Creative

Question 70

Tammy is a very dedicated employee.She is considered to have a strong work ethic.Which of the following statements regarding Tammy would NOT be correct if her behaviour is consistent with a work ethic?

A) Tammy sees that work is the purpose of one's life.
B) Tammy sees work as socially valuable.
C) Unemployment, to Tammy, would be a temporary misfortune.
D) Tammy has a consumption ethic as well.
E) All of the statements are consistent with the body of moral principles considered as work ethic.

Question 71

Consumer sovereignty is the assumption that:

A) the consumer is servant to the producer.
B) the producer is servant to the consumer.
C) consumers are guaranteed to experience equality of opportunity in the product market.
D) the work ethic of individuals is extremely diligent in all instances.
E) economic freedom exists for consumers in an oligopolistic market.

Question 72

Which of the following statements regarding capitalism is false?

A) Capitalism is considered a controversial economic system.
B) Economic decision-making is in the hands of individuals or enterprises, which make decisions with the goal of maximizing social welfare.
C) Private ownership is fundamental to capitalism.
D) Profit is a key motivator of corporate behaviour.
E) Profit maximization is an important goal.

Question 73

Canada,the United States,Great Britain,and Australia practice this form of capitalism:

A) conventional
B) liberal market
C) family
D) frontier
E) garrison

Question 74

Profits:

A) are closely associated with competition
B) spurs people into action
C) act as a signal to other entrants
D) can be retained in a business as a source of funds
E) all of the above

Question 75

All of the following stakeholders were blamed for the 2008 financial crisis,except:

A) Financial institutions
B) Investment dealers
C) Regulators
D) Government
E) Lobbyists

Question 76

Which of the following is true when comparing government involvement in the U.S.economy to that of Canada?

A) Government involvement in the economy is greater in the U.S. than it has ever been in Canada.
B) You cannot compare the level of involvement of the governments of these two countries as Canada has a socialist system and the U.S. has a capitalist system.
C) Government involvement in the economy has always been about the same for these two countries.
D) Government involvement in the economy has always been greater in Canada than in the U.S.
E) The U.S. government does not regulate any markets in that country; they are the best example of pure capitalism in the world.

Question 77

If capitalism is to be accepted as the economic system in society:

A) financial institutions have to be more heavily regulated.
B) businesspersons and management must somehow take into account the ethical implications resulting from the workings of the fundamentals.
C) regulators must demand increased corporation participation.
D) government must be more laissez-faire.
E) government officials must enforce ethical behaviour with stronger criminal and civil penalties.

Question 78

The assumption that consumers have power over producers through the decisions they make in purchasing goods and services is known as:

A) work ethic
B) consumer sovereignty
C) consumption ethic
D) economic freedom
E) equality of opportunity

Question 79

Francois is determined to start an Internet development company.A family friend had entered the business many years ago and has become quite wealthy.His income,however,levelled off after the first few years because excessive ___________ attracted others to the industry,increasing ___________.

A) competition, profits
B) profits, competition
C) work ethic, profits
D) profits, work ethic
E) profits, costs

Question 80

In order for resources to be efficiently transferred from less productive to more productive uses when weak corporations fail in a capitalist system,it is necessary that:

A) Governments intervene in these markets.
B) Bankruptcy laws work well.
C) Bail out programs are in place.
D) Governments make the difficult decisions about which industries to support.
E) All of the above are true.