Chapter 1 - Understanding The Canadian Business System

22 Questions
Business Quizzes & Trivia
Sample Question

A kind of command economy in which the government owns and operates the main industries, while individuals own and operate less crucial industries.

Communism

Capitalism

Socialism

Free market

None of the above

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Questions and Answers
  • 1. 
    A kind of command economy in which the government owns and operates the main industries, while individuals own and operate less crucial industries.
    • A. 

      Communism

    • B. 

      Capitalism

    • C. 

      Socialism

    • D. 

      Free market

    • E. 

      None of the above

  • 2. 
    An individual who organizes and manages labour, capital and natural resources to produce goods and services to earn a profit, but who also runs the risk of failure.
    • A. 

      Corporation

    • B. 

      Entrepreneur

    • C. 

      Manager

    • D. 

      Executives of a business

  • 3. 
    An economic system in which government controls all or most factors of production and makes all or most production decisions
    • A. 

      Market economy

    • B. 

      Command economy

    • C. 

      Communism

  • 4. 
    Resources used to produce goods and services, labour, capital, entrepreneurs and natural resouces are called:
    • A. 

      Market

    • B. 

      Economy

    • C. 

      Capital

    • D. 

      Factors of production

  • 5. 
    The transfer of activities from the government to the public sector
    • A. 

      Deregulation

    • B. 

      Competition

    • C. 

      Privatization

  • 6. 
    A reduction in the number of laws affecting business activity
    • A. 

      Deregulation

    • B. 

      Privatization

    • C. 

      Freedom

  • 7. 
    Set standards of accuracy for weighing and mesuring devices
    • A. 

      Textile labelling Act

    • B. 

      Weight and measure act

    • C. 

      Canada Water Act

    • D. 

      Fisheries Act

  • 8. 
    Situition in which quantity supplies exceeds quantity demanded
    • A. 

      Surplus

    • B. 

      Shortage

    • C. 

      Supply

    • D. 

      Excess

  • 9. 
    Profit maximizing price at which the quantity of goods demanded and the quantity of goods supplies are equal
    • A. 

      Demand curve

    • B. 

      Supply curve

    • C. 

      Fair price

    • D. 

      Market price/equilibrium price

  • 10. 
    Graph showing how many units of a product will be supplied at different prices
    • A. 

      Demand curve

    • B. 

      Supply curve

  • 11. 
    Firm buy resources that they need in the production of goods and services is input market.
    • A. 

      T

    • B. 

      F

  • 12. 
    Firms supply goods and services in response to demand on the part of consumers.
  • 13. 
    The willingness and ability of buyers to purchase a product or service.
  • 14. 
    An exchange process between buyers and sellers of a particular good or service.
  • 15. 
    A market or industry characterized by a large number of firms supplying products that are similar but distinctive enough from one another to five firms some ability to influence price.
    • A. 

      Perfect competition

    • B. 

      Monopolistic competition

    • C. 

      Oligopoly

  • 16. 
    A perfect competition is where a market or industry characterized by a very large number of small firms producing an identical product so that none of the firms has any ability to influence price.
    • A. 

      True

    • B. 

      False

  • 17. 
    An oligopoly is where a market or industry is characterized by a small number of very large frims that have the power to influence the price of their product and/or resources
    • A. 

      True

    • B. 

      False

  • 18. 
    Specialization is the breaking down of complex operation into simple tasks that are easily learned and performed.
    • A. 

      T

    • B. 

      F

  • 19. 
    Mixed market economy is a system featuring characteristics of both command and market economies. e.g. Canada
    • A. 

      T

    • B. 

      F

  • 20. 
  • 21. 
    Describe the law of supply and demand. And how the equilibrium price is achieved.
  • 22. 
    Name the factors of production: