Chapter 1 - Understanding The Canadian Business System

22 Questions
Business Quizzes & Trivia
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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. 
    Describe how the government influences business ( 6 points)
  • 21. 
    Describe the law of supply and demand. And how the equilibrium price is achieved.
  • 22. 
    Name the factors of production: