Deck 4: The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Question 1

The selling off of Canadian government owned crown corporations such as Air Canada and Canadian National Railway (CNR)is called:

A)decertification.
B)deregulation.
C)privatization.
D)going public.

Answer 1

C

Question 2

Ontario sold the toll-road Highway 407 and its share in a land-registry firm.This is an example of:

A)national policy
B)free-trade
C)financial aid
D)privatization

Answer 2

D

Question 3

The removal of interprovincial trade barriers would mean

A)increased labour mobility
B)lower tax revenues
C)a difficult period of adjustment as uncompetitive operations are closed
D)the loss of even more jobs to foreign countries

Answer 3

A

Question 4

A comprehensive and coordinated government plan to guide and revitalize the Canadian economy is called:

A)the crown corporations plan.
B)revitalization.
C)an industrial policy.
D)privatization.

Question 5

Direct payments from governments to other governments or to individuals is known as what?

A)Specialized purchasing policies.
B)Debt reduction.
C)Monetary policy.
D)Transfer payments.

Question 6

Federal and provincial policies to help Canadian businesses by purchasing their goods are being modified due to _.

A)equalization payments
B)MERX
C)Gaspe
D)NAFTA

Question 7

Industry Canada administers the which aims to make sure that mergers will not restrict competition.

A)Corporations Act
B)Laissez-Faire Treaty
C)Food and Drug Act
D)Competition Act

Question 8

The Bank of Canada operates:

A)as a Crown Corporation.
B)under the direction of the Banking Oversight Committee of Parliament.
C)as a special agency of the Canadian Treasury Board.
D)under the direct control of the executive branch of the government.

Question 9

Business and consumer information is available to Canadian businesses from:

A)Industry Canada
B)the Department of the attorney general
C)Revenue Canada
D)AEC Ltd.

Question 10

Zoning laws:

A)set up speed-limit zones for traffic
B)limit the depth of building basements
C)regulate noise,smells,signs
D)restrict truck size

Question 11

Subprime mortgages are loans:

A)to those who qualify for regular mortgages
B)to first-time home buyers
C)to those with poor credit histories
D)to those living in Ontario

Question 12

The National Round Table on the Environment and the Economy has recommended that Canada immediately put into place what?

A)An end to the softwood lumber dispute.
B)A hard-cap regime on emissions by 2015.
C)Greater interaction between Canada's three levels of government,but with each having its own unique standards.
D)A national industrial policy for Canada.

Question 13

refers to the efforts of the federal government to keep the economy stable by increasing or decreasing taxes and/or government spending.

A)Incomes policy
B)Cyclical policy
C)Fiscal policy
D)Monetary policy

Question 14

Governments throughout Canada are privatizing services that they have traditionally offered in response to:

A)new laws and regulations that have been passed mandating that these services be privatized.
B)as a means of increasing the scope of their involvement in the economy.
C)an opportunity to realize huge ongoing profits from royalties they will collect from private companies who acquire these services.
D)as a means to reduce the role of government in the economy.

Question 15

An important function of the NRC (National Research Council)is to:

A)provide revenue for the government by developing commercially viable products
B)provide leadership for Canada's major universities
C)conduct weapons research for Canada's military
D)help Canadian industry remain competitive and innovative

Question 16

Interprovincial trade is a industry in Canada.

A)$300 billion
B)$14 billion
C)$1 trillion
D)$2 trillion

Question 17

Federal governments sometimes use the lever of monetary policy to:

A)help control business cycles
B)help the banks with loaning money to the poor
C)reward areas with low unemployment
D)raise interest rates to stimulate sectors of the economy

Question 18

If the government wishes to discourage the use of certain classes of products,such as cigarettes,it can do what?

A)Pass a sin tax.
B)Rely on property taxes as its revenue base.
C)Add to the federal debt.
D)Provide tax relief to the tobacco industry.

Question 19

Government activities that affect businesses include:

A)crown corporations
B)promotion
C)a free economy
D)democracy

Question 20

The following is a Crown corporation:

A)Canadian Imperial Bank of Commerce
B)Air Canada
C)Canada Mortgage and Housing Corp
D)Canadian National Railways

Question 21

Member of Parliament Bud Smythe is alarmed at the state of the economy.Unemployment is high and GDP is low.MP Smythe has called for parliament to take decisive action to increase its expenditures and cut taxes in order to stimulate the economy.The actions called for by MP Smythe are examples of the government's use of:

A)fiscal policy.
B)social investment policy.
C)monetary policy.
D)incomes policy.

Question 22

If a firm is interested in conducting business in the Canadian public sector,they should use:

A)MERX
B)MASH
C)NAFTA
D)NRC

Question 23

Which of the following statements about government deficit spending is most accurate?

A)The federal government violates the law by running deficits because the Canadian Constitution requires the government to balance its budget each year.
B)One reason the government has a hard time reducing deficits is that there is a great deal of pressure on the government to expand its spending and transfer payments each year.
C)Although the government used to run big deficits,it has consistently run surpluses since the late 1980s.
D)The government has used deficit spending to lower the national debt.

Question 24

When the government runs a budget deficit it increases the:

A)federal capital account.
B)money supply.
C)balance of payments deficit.
D)national debt.

Question 25

Some people argue that the best way to develop the Canadian economy is:

A)privatization of all crown corporations.
B)a long term industrial policy.
C)an across the board increase on import duties.
D)less free trade.

Question 26

In the subprime mortgage crisis,Canadian financial institutions:

A)did not face the high default rates faced by homeowners in the United States.
B)did not require any aid from the federal government.
C)faced higher default rates than were found in the United States.
D)lost more money than did all U.S.financial institutions.

Question 27

Efforts by the Bank of Canada to control the money supply and interest rates are known as:

A)fiscal policy.
B)monetary policy.
C)incomes policy.
D)securities policy.

Question 28

An important day- to- day function of the Bank of Canada is to:

A)design new currency for Canada
B)issue bonds on behalf of large private corporations
C)set monetary policy
D)control fully Canadian chartered banks

Question 29

P3s represent what?

A)A way for municipalities to gain much needed tax revenue.
B)A method of privatizing public services or public infrastructure.
C)A method for the federal government to enter into new areas of the economy.
D)A method for marketing boards to enact their legislation.

Question 30

Which one of these companies received $1 billion in financing from the Quebec government in 2013?

A)Ford
B)Bombardier
C)Chrysler Corporation
D)General Motors

Question 31

The front-page headline of your local newspaper states that the Bank of Canada is becoming increasingly worried about the rate of inflation and wants to slow the economy.Which of the following policies is the Bank of Canada most likely to pursue?

A)Increase taxes.
B)Devalue the dollar on international currency exchanges.
C)Decrease interest rates.
D)Restrict the money supply and drive up interest rates.

Question 32

Fiscal policy involves increases or decreases in:

A)exports and imports.
B)interest rates.
C)the money supply.
D)government spending and taxes.

Question 33

The difficulties arising from interprovincial trade barriers have been lessened due to:

A)The Agreement on Internal Trade (AIT)
B)higher tax revenues
C)Crown corporations
D)P3s

Question 34

Some government aid is designed to help industries and companies that are deemed to be very important because they:

A)are at the cutting edge of technology.
B)oriented towards imports.
C)are in other countries.
D)provide low skilled jobs.

Question 35

When the federal government spends more in a year than it receives in tax revenues,the result is called a:

A)federal reserve allowance.
B)federal deficit.
C)GDP deflator.
D)balance of payments deficit.

Question 36

The main reason for Canada's uneven economic development is:

A)uneven resources,climate and geography.
B)the proximity of the U.S.
C)lack of entrepreneurial skills by Canadians.
D)federal government policies favouring Ontario and Quebec.

Question 37

A policy of the first Canadian government developed by Sir John A.MacDonald to place high tariffs on imports thereby protecting Canadian manufacturers was called:

A)GATT or the General Agreement on Tariffs and Trade
B)Anti-dumping duty
C)the National Policy
D)the tariff board laws

Question 38

Federal and provincial governments use their enormous purchasing power to:

A)favour Canadian companies
B)reduce taxes
C)force private firms to comply with the laws
D)favour foreign suppliers

Question 39

The 1990s saw a trend in the Canadian government's involvement in business towards:

A)a lessening of the role of government
B)growth in the government's role
C)no change
D)more regulation imposed by foreign governments

Question 40

In Canada,the control of the money supply is the responsibility of the:

A)Canadian Treasury Board.
B)Canada Deposit Insurance Corporation.
C)Bank of Canada.
D)Federal Government.

Question 41

The Bank of Canada lowers interest rates:

A)to boost a weak economy
B)to attract immigrants
C)to establish a better fiscal policy
D)on instructions from the Minister of Finance

Question 42

Governments try to respond to business needs.

Question 43

The annual Canadian federal budget reveals federal government financial policies for the coming year.

Question 44

Deregulation means that the government withdraws certain laws and regulations that seem to hinder competition.

Question 45

When advanced technology is involved in government purchasing,governments make a strong effort to ensure that some of the manufacturing is done in Canada.

Question 46

In Canada,we have a special system of marketing boards that control the pricing of certain agricultural products.

Question 47

The Competition Act aims to ensure that:

A)there is no price fixing.
B)there is discriminatory pricing.
C)competition is not cut-throat.
D)mergers of large corporations will restrict competition.

Question 48

Fiscal policy looks at the money supply and interest rates.

Question 49

All levels of government offer a variety of direct assistance programs to businesses.

Question 50

The process of selling off crown corporations is called privatization.

Question 51

A cap-and-trade system does what?

A)Caps the amount that energy companies can charge the consumer.
B)Puts a price on pollution.
C)Caps the amount of money that the Bank of Canada can allow into the Canadian economic system.
D)Taxes the end user of energy products.

Question 52

Industry Canada produces booklets and materials to inform businesses of the help available and how to get it.

Question 53

The sole purpose of Canada's federal Competition Act is to ensure that all advertising done by corporations meets government standards.

Question 54

Canadian governments will buy in Canada only if the Canadian price offered is equal or less than that offered by a foreign company.

Question 55

Governments have many direct and indirect programs designed to help businesses.

Question 56

The Ontario government has looked at selling such crown corporations as the Liquor Control Board of Ontario.

Question 57

Government withdrawing certain laws and regulations that hinder competition is known as what?

A)deregulation
B)privatization
C)public corporations
D)co-operatives

Question 58

A new trend is the emergence of the public-private partnership (P3).

Question 59

To encourage industrial development in Canada the federal government runs various incentive programs and offers services through different departments.

Question 60

The Bank of Canada's responsibilities includes setting fiscal policy.

Question 61

The 2015-2016 budget allocated billions of dollars in equalization payments to ten provinces.

Question 62

Crown corporations can be found in all provinces.

Question 63

In special,unplanned but important cases threatening the survival of a major company,the government has a policy of non-intervention.

Question 64

Equalization is viewed as a means of maintaining the same level of taxation across Canada,although the level of services provided will vary.

Question 65

Monetary policy is directly under the control of the Bank of Canada.

Question 66

Federal and provincial policies favouring Canadian businesses are being modified as a result of having NAFTA in place.

Question 67

Monetary policy involves the level of government spending.

Question 68

The economic goal of monetary and fiscal policy is to keep the economy growing.

Question 69

Canadian financial institutions faced the same high mortgage default rates as were found in the United States.

Question 70

Taxes come from a variety of sources.

Question 71

Since Canada was formed in 1867,the federal government has played a significant role in the economy through its laws and regulations.

Question 72

Canada's first prime minister is responsible for the National Policy which placed high tariffs on U.S.imports to protect Canada's fledgling companies.

Question 73

Fiscal policy refers to the federal government's efforts to keep the economy stable by controlling the amount of money in circulation.

Question 74

Transfer payments are direct payments from governments to other governments.

Question 75

Some government aid goes to help industries or companies that are deemed to be very important.

Question 76

During the subprime mortgage crisis the Bank of Canada continued to raise its lending rate.

Question 77

In the United States,people holding subprime mortgages found that at the end of their term,interest rates were much higher and they couldn't make their payments.

Question 78

The government has a large and elaborate system to help companies in their exporting activities.

Question 79

Municipalities set certain zoning requirements on businesses including height and distance from the road of all buildings.

Question 80

The federal government has a "buy foreign" policy when it comes to significant military acquisitions.