Chapter 1 - Understanding The Canadian Business System
22 Questions
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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:
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