Question 1

The Bank of Canada lowers interest rates:

Accepted Answer

The Bank of Canada lowers interest rates to boost a weak economy by making borrowing cheaper and encouraging spending and investment.

Question 2

Governments try to respond to business needs.

Accepted Answer

Governments often create policies and regulations that aim to support and address the needs of businesses operating within their country or region. This can include tax incentives, workforce development programs, and infrastructure investments, among other initiatives.

Question 3

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

Accepted Answer

The Canadian federal budget is an annual statement by the federal government that outlines its financial plans for the upcoming year, including policies related to spending, taxation, and revenue allocation. Therefore, the statement is true.

Question 4

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

Accepted Answer

Deregulation is the process of removing or reducing government rules and regulations that restrict free competition in a particular industry or market. This can include removing licensing requirements, lowering barriers to entry, and reducing government control over pricing and other business practices. The goal of deregulation is to increase competition and innovation, leading to better services and lower prices for consumers.

Question 5

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

Accepted Answer

This is true. Governments often have policies or regulations in place that require a portion of the manufacturing or production of advanced technology products to be done within Canada in order to support local businesses and the economy.

Question 6

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

Accepted Answer

The marketing board system in Canada controls the pricing and supply of certain agricultural products, such as dairy, eggs, and poultry. These boards operate under government regulation and are intended to ensure stable pricing and consistent supply for farmers and consumers.

Question 7

The Competition Act aims to ensure that:

Accepted Answer

The Competition Act aims to prevent price fixing, which is an agreement between competitors to set prices at a certain level. This is done to avoid competition and is therefore detrimental to the goals of the Act. The Act prohibits any agreements or concerted practices that restrict, prevent or distort competition in Canada.

Question 8

Fiscal policy looks at the money supply and interest rates.

Accepted Answer

Fiscal policy involves changes in government spending and taxation, and does not directly affect the money supply or interest rates. However, it can indirectly impact them through its effects on economic activity and inflation. Monetary policy, on the other hand, focuses on managing the money supply and interest rates to achieve certain economic objectives.

Question 9

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

Accepted Answer

All levels of government, including federal, state, and local, offer various types of direct assistance programs to businesses in order to spur economic growth and job creation. Examples include grants, loans, tax credits, and technical assistance.

Question 10

The process of selling off crown corporations is called privatization.

Accepted Answer

This is correct. Privatization refers to the process of selling off state-owned or crown-owned companies to private investors. This is often done with the aim of increasing efficiency, reducing government costs, and allowing businesses to operate more competitively.

Question 11

A cap-and-trade system does what?

Accepted Answer

A cap-and-trade system puts a price on pollution by setting a limit on the amount of pollution that companies can emit. Companies then have the option to either reduce their emissions to stay under the limit or purchase credits from companies that have reduced their emissions below the limit. This incentivizes companies to reduce their pollution levels and creates a market for emissions credits. The system does not cap the amount that energy companies can charge consumers, cap the amount of money that the Bank of Canada can allow into the Canadian economic system, or tax the end user of energy products.

Question 12

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

Accepted Answer

This statement is true. Industry Canada provides resources for businesses to understand the support that is available and how to access it.

Question 13

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

Accepted Answer

The federal Competition Act in Canada is aimed at promoting and protecting competition in the marketplace and prohibits certain anti-competitive practices such as price-fixing, misleading advertising, and abuse of dominant market position. While advertising standards fall under the purview of various self-regulatory organizations, the Competition Act does not solely focus on advertising standards.

Question 14

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

Accepted Answer

The answer of Canadian governments will buy in Canada only...

Question 15

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

Accepted Answer

Governments have various programs such as grants, loans, tax incentives, and business advisory services to support and promote business growth and development.

Question 16

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

Accepted Answer

The Ontario government has considered selling the Liquor Control Board of Ontario, as well as other crown corporations, as a way to reduce the provincial deficit.

Question 17

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

Accepted Answer

Deregulation is the process of removing or reducing regulations or laws that may hinder competition and market efficiency. Privatization refers to transferring ownership from the public sector to the private sector. Public corporations are entities owned and operated by the government. Co-operatives are organizations owned and democratically controlled by their members, who share in the profits or benefits.

Question 18

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

Accepted Answer

P3, or public-private partnerships, have become increasingly popular in recent years as governments seek to leverage private sector expertise and resources to deliver public infrastructure and services.

Question 19

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

Accepted Answer

The statement is true. The federal government of Canada runs several incentive programs and offers various services to encourage industrial development in the country. Examples of such programs include the Strategic Innovation Fund, Industrial Research Assistance Program, and the Canadian Trade Commissioner Service, which provides support and guidance to businesses looking to expand or invest in Canada.

Question 20

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

Accepted Answer

The Bank of Canada's responsibilities include setting monetary policy, not fiscal policy. Fiscal policy is set by the government through its budget and spending decisions.

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