Question 1

Market price is determined only by supply.

Accepted Answer

A) True 
 B)False

Question 2

One of the greatest concerns associated with capitalism is that:

Accepted Answer

A)  producers are unlikely to supply the goods and services that consumers value the most.
B)  it is not very successful at creating wealth.
C)  the amount of economic freedom enjoyed by consumers is very limited.
D)  some businesspeople may let greed guide their behaviour.E) A) and B)
F) All of the above

Question 3

Explain how prices are determined in a free-market economy.

Accepted Answer

In a free-market economy prices are dete...

Question 4

Supporters of a free market would argue that because supply and demand interactions determine prices,there is no need for government involvement or planning.

Accepted Answer

A) True 
 B)False

Question 5

The higher the productivity is,the higher the costs of production are likely to be.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following results would be the clearest indication that an economy was experiencing deflation?

Accepted Answer

A)  a decrease in the unemployment rate
B)  an increase in the PPI
C)  a decrease in the CPI
D)  a decrease in GDPE) B) and D)
F) A) and D)

Question 7

The government of Nexico has made progress in its efforts to bring Nexico's rapid inflation under control.Although prices are still rising,the rate of increase has slowed considerably.This suggests that Nexico currently is experiencing disinflation.

Accepted Answer

A) True 
 B)False

Question 8

Adam Smith believed that an economic system couldn't truly prosper unless people were taught to value the welfare of others above their own personal gain.

Accepted Answer

A) True 
 B)False

Question 9

Three of the major indicators of the economic condition of Canada are the gross domestic product (GDP) ,the price indices,and the:

Accepted Answer

A)  unemployment rate.
B)  debt to equity ratio (DER) .
C)  index of capital formation.
D)  gross resource utilization index (GRUI) .E) None of the above
F) C) and D)

Question 10

Canada has a mixed economy,like most other countries in the world.Explain what the term mixed economy means & what the benefits are.

Accepted Answer

A mixed economy is one that is part capi...

Question 11

Which of the following people would tend to favour a socialist economy?

Accepted Answer

A)  Dann wants to live in a country with low marginal tax rates.
B)  Liz wants to live in a country with limited government regulation.
C)  Robin wants to live in a country that encourages rapid economic growth.
D)  Dwayne prefers to live in a country that promotes social equality.E) B) and D)
F) None of the above

Question 12

Communism is an economic system in which:

Accepted Answer

A)  all or most of the productive resources are owned by private businesses.
B)  the government and private citizens own equal shares of the economic resources.
C)  the government makes most of the major economic decisions.
D)  individual consumers make all economic decisions.E) A) and B)
F) A) and C)

Question 13

A monopoly occurs when there is a single seller for a product or service.

Accepted Answer

A) True 
 B)False

Question 14

The market price of apples is currently rising.In a free-market economy,the most likely explanation of this price change is that:

Accepted Answer

A)  there is a shortage in the market for apples.
B)  the supply of money has decreased.
C)  the equilibrium price is lower than the market price.
D)  the government has decided to set a higher price so that the firms in the market make an adequate profit.E) A) and B)
F) None of the above

Question 15

looks at the behaviour of individual people and organizations in specific markets.

Accepted Answer

A)  Finite economics
B)  Microeconomics
C)  Nanoeconomics
D)  MacroeconomicsE) B) and D)
F) A) and D)

Question 16

The Canadian economic system can be described as a:

Accepted Answer

A)  communist economy.
B)  socialist economy.
C)  mixed economy.
D)  capitalist economy.E) A) and B)
F) A) and C)

Question 17

A major benefit of socialism is assumed to be its:

Accepted Answer

A)  emphasis on low tax rates.
B)  ability to create strong incentives to work hard.
C)  emphasis on social equality.
D)  ability to stimulate rapid economic growth.E) B) and C)
F) A) and D)

Question 18

The markets for laundry detergents,soft drinks,and automobiles all are dominated by just a few sellers.Economists would classify these markets as examples of:

Accepted Answer

A)  perfect competition.
B)  monopolistic competition.
C)  an oligopoly.
D)  a monopoly.E) B) and D)
F) B) and C)

Question 19

A(n) _______curve shows the relationship between the price of a good and the quantity of that good people are willing and able to buy in a given time period.

Accepted Answer

A)  Laffer
B)  utility
C)  demand
D)  supplyE) B) and C)
F) A) and D)

Question 20

A supply curve indicates the relationship between ___ and the quantity supplied.

Accepted Answer

A)  price
B)  demand
C)  supply
D)  utilityE) A) and C)
F) A) and B)

Exam 2: How Economic Issues Affect Business

Supporters of a free market would argue that because supply and demand interactions determine prices,there is no need for government involvement or planning.

Correct AnswerverifiedShow Answer

A(n) _______curve shows the relationship between the price of a good and the quantity of that good people are willing and able to buy in a given time period.

Correct AnswerverifiedShow Answer

Three of the major indicators of the economic condition of Canada are the gross domestic product (GDP) ,the price indices,and the:

Correct AnswerverifiedShow Answer

The government of Nexico has made progress in its efforts to bring Nexico's rapid inflation under control.Although prices are still rising,the rate of increase has slowed considerably.This suggests that Nexico currently is experiencing disinflation.

Correct AnswerverifiedShow Answer

A supply curve indicates the relationship between ___ and the quantity supplied.

Correct AnswerverifiedShow Answer

Which of the following people would tend to favour a socialist economy?

Correct AnswerverifiedShow Answer

Which of the following results would be the clearest indication that an economy was experiencing deflation?

Correct AnswerverifiedShow Answer

Communism is an economic system in which:

Correct AnswerverifiedShow Answer

The markets for laundry detergents,soft drinks,and automobiles all are dominated by just a few sellers.Economists would classify these markets as examples of:

Correct AnswerverifiedShow Answer

A monopoly occurs when there is a single seller for a product or service.

Correct AnswerverifiedShow Answer

looks at the behaviour of individual people and organizations in specific markets.

Correct AnswerverifiedShow Answer

The higher the productivity is,the higher the costs of production are likely to be.

Correct AnswerverifiedShow Answer

Explain how prices are determined in a free-market economy.

Correct AnswerverifiedIn a free-market economy prices are dete...View AnswerShow Answer

Canada has a mixed economy,like most other countries in the world.Explain what the term mixed economy means & what the benefits are.

Correct AnswerverifiedA mixed economy is one that is part capi...View AnswerShow Answer

A major benefit of socialism is assumed to be its:

Correct AnswerverifiedShow Answer

Market price is determined only by supply.

Correct AnswerverifiedShow Answer

One of the greatest concerns associated with capitalism is that:

Correct AnswerverifiedShow Answer

Adam Smith believed that an economic system couldn't truly prosper unless people were taught to value the welfare of others above their own personal gain.

Correct AnswerverifiedShow Answer

The market price of apples is currently rising.In a free-market economy,the most likely explanation of this price change is that:

Correct AnswerverifiedShow Answer

The Canadian economic system can be described as a:

Correct AnswerverifiedShow Answer

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In a free-market economy prices are dete...
View Answer

Correct Answer
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A mixed economy is one that is part capi...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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