Deck 6: Section 3: Does It Matter: Society, Ethics and Business

Question 1

The market system allows for certain rights to exist, except:

A)right to own private property
B)right to compete
C)right to make a profit
D)right to denounce your citizenship

Answer 1

D

Question 2

High levels of taxation with high levels of government services are often associated with:

A)market systems
B)socialist systems
C)communistic systems
D)mixed systems

Answer 2

B

Question 3

High capital costs are likely barriers of entry that are typical in the ___________ form of competition.

A)monopoly
B)oligopoly
C)monopolisitc
D)pure

Answer 3

B

Question 4

A benefit of competition to consumers is:

A)more ethical companies
B)lower prices
C)less varied products
D)sustainable companies

Question 5

Municipal tap water and bottled water would be part of ______ form(s) of competition.

A)the same
B)the natural monopoly
C)separate
D)the natural oligopolies

Question 6

Pepsi, an established, global cola manufacturer, likely uses the following examples of the factors of production today:

A)knowledge and entrepreneurs
B)labour and natural resources
C)natural resources and cash
D)cash and entrepreneurs

Question 7

Competition can exist when:

A)a hardware store competes with a grocery store
B)a shoe store competes with a different shoe store
C)a cable company in the province of Ontario competes with the same cable company in the province of P.E.I.
D)a store closes down due to bankruptcy

Question 8

A factor of production includes all of the following except:

A)cash
B)labour
C)natural resources
D)entrepreneurs

Question 9

An economic environment refers to the:

A)political, economic and social conditions in which people live
B)economic conditions in which an organization operates
C)the global environment of business
D)a more general meaning of globalization

Question 10

In Canada, an industry whereby competition is fierce is the:

A)municipal tap water industry
B)cable television industry
C)coffee industry
D)satellite radio industry

Question 11

Municipal tap water is typically controlled and operated by a local government. This type of competition is:

A)pure competition
B)monopolistic competition
C)a natural monopoly
D)an oligopoly

Question 12

Today, the best example of a communistic system would be:

A)France
B)Singapore
C)Cuba
D)Vietnam

Question 13

The analysis of consumer spending on home repairs and renovations would likely fall under:

A)microeconomics
B)macroeconomics
C)the home construction index
D)none of the above

Question 14

A system with greater economic stability but higher unemployment is usually a:

A)market system
B)socialist system
C)communistic system
D)mixed system

Question 15

In Year 1, Jerry decided to give up a job that paid an annual salary of $100,000 to go back to school. College tuition cost a total of $50,000 for one year. However, in Year 2, after graduation, Jerry got a job that paid $200,000. The opportunity cost of getting an education for Jerry is:

A)$ 50,000
B)$150,000
C)$100,000
D)none of the above

Question 16

Macroeconomics is the study of:

A)the individual in the economy
B)business in the economy
C)small data in the economy
D)broader economic issues such as unemployment, inflation and the GDP

Question 17

As the sole producer of a product or service, a company in this form of competition is a:

A)price taker
B)price setter
C)price fixer
D)price barrier

Question 18

McDonald's selling burgers and fries likely competes in this form of competition:

A)monopoly
B)oligopoly
C)monopolistic
D)pure

Question 19

The factors of production include all of the following except:

A)capital
B)entrepreneur
C)investors
D)natural resources

Question 20

A pharmaceutical company invents and patents a new drug that is not produced by any other seller. This type of competition may be described as:

A)a regulated oligopoly
B)monopolistic competition
C)a limited monopoly
D)a natural monopoly

Question 21

In general terms, full employment means that:

A)only cyclical unemployment exists
B)only frictional unemployment exists
C)no unemployment exists
D)there is less than 0.00002% unemployment

Question 22

A downward change in the economy can result in an increase in:

A)cyclical unemployment
B)structural unemployment
C)seasonal unemployment
D)frictional unemployment

Question 23

An oligopoly is a form of competition in a particular market where:

A)there are many small firms competing with no differentiated
B)there are a few, large firms selling slightly differentiated products
C)there is one producer of a good or service
D)there are many, small firms with slightly differentiated products

Question 24

Cola manufacturers such as Coke and Pepsi are an example of this type of competition:

A)pure competition
B)monopolistic competition
C)a monopoly
D)an oligopoly

Question 25

Potatoes grown in P.E.I. are sold across Canada and compete in this form of competition:

A)pure competition
B)monopolistic competition
C)a monopoly
D)an oligopoly

Question 26

When jobs available do not correspond with the skills of the labour force, an increase in _____________ can occur.

A)cyclical unemployment
B)structural unemployment
C)seasonal unemployment
D)frictional unemployment

Question 27

When only frictional unemployment exists, and no structural or cyclical unemployment is present, there is:

A)just seasonal unemployment
B)full employment
C)the natural rate of unemployment
D)total natural unemployment in a region

Question 28

There are lots of retail stores to buy running shoes in Canada. Walmart, Payless Shoes, Sporting Life, Sears, Athletic World, and the Running Room are just a few examples. There are a variety of prices, styles and designs to choose from. This is an example of:

A)pure competition
B)monopolistic competition
C)a monopoly
D)an oligopoly

Question 29

The construction industry exists around the year, but housing construction is most active in the spring and summer. When housing contractors are unemployed in the winter, they are likely affected by:

A)cyclical unemployment
B)structural unemployment
C)seasonal unemployment
D)frictional unemployment

Question 30

Facebook is a U.S. online social networking site that advertizes to millions of its members across Canada, the United States and abroad. The U.S. gross domestic product (GDP) would include ________ from Facebook.

A)sales earned in the U.S.only
B)sales earned in the U.S.and Canada only
C)sales earned in Canada only
D)sales earned in the U.S.and internationally