Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

When does deflation occur?

Accepted Answer

A)  when the rate of price increases slows down 
B)  when average prices increase more than 50 percent per month 
C)  when prices decrease 
D)  when productivity decreases

Question 6

The Canadian government is the nation's largest employer.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  deficit policy 
B)  fiscal policy 
C)  revenue policy 
D)  monetary policy

Question 9

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

Accepted Answer

The answer of Identify and explain the two of the...

Question 10

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

Accepted Answer

A)  goods and services bought by the business sector 
B)  the cost of government-supplied goods and services 
C)  goods and services bought by the average consumer 
D)  all goods and services produced by domestic businesses

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  Spending outpaces revenue from taxes. 
B)  Tax revenue outpaces its expenditures. 
C)  Monetary policies reduce the amount of money in circulation. 
D)  Gold reserves are inadequate to support the existing money supply.

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Individuals quitting their jobs experience structural unemployment.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

The answer of Discuss how the Bank of Canada's open...

Question 17

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

Accepted Answer

A)  by buying and selling government securities on the open market 
B)  by establishing the amount of currency the Bank of Canada is allowed to print each month 
C)  by allowing banks to borrow more money from the Bank of Canada 
D)  by changing the reserve requirement

Question 18

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

Accepted Answer

A)  determining the best government tax policies to deal with a high rate of inflation 
B)  helping a firm determine the best pricing strategy for its products 
C)  explaining the reasons for an increase in the nation's unemployment rate 
D)  measuring the total output produced by a nation's economy

Question 19

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

Accepted Answer

A)  the consumer price index (CPI) and producer price index (PPI) 
B)  productivity and unemployment 
C)  inflation and disinflation 
D)  monetary policy and fiscal policy

Question 20

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

Accepted Answer

The answer of Explain the reason for the current trend...

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.