Question 1

Discuss the reasons why the Canadian government permits certain "natural" monopolies while forbidding attempts by business firms to create a monopoly in other parts of the economy.

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Question 2

Explain the roles of demand and supply in a market economy.

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Question 3

Discuss the government's role as: (a) a competitor, (b) a regulator, (c) a taxation agent, and (d) a provider of incentive programs.

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Question 4

Compare and contrast the four degrees of competition in a private enterprise system.

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Question 5

Consider the following statement: "A nation's economic system is its system for allocating its resources among its citizens, both individuals and organizations." What are a nation's "resources", and what important role do they play in a nation's economic system?

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Question 6

Describe monopolistic competition in terms of the number of competitors, ease of entry into the market, similarity of goods/services offered by competing firms, and level of control over price by individual firms. Give an example of a market or industry characterized by monopolistic competition.

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Question 7

Describe monopoly in terms of the number of competitors, ease of entry into the market, and level of control over price by individual firms. Give an example of a market or industry that is a monopoly.

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Question 8

"All the different economic systems of the world are moving toward a mixed economy with elements of a planned economy and a market economy." Agree or disagree and support your position.

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Question 9

Explain the effects of monopolies on consumers and the economy.

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Question 10

Discuss the two reasons that the government uses to justify regulation of business activities. As an owner or manager, do you believe regulation of business is justified as an owner or manager? As a consumer?

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Question 11

Explain the role of private enterprise in a market economy. Include an explanation of the elements that comprise free enterprise.

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Question 12

Expert Electronics sells state-of-the-art desktop computer systems. It competes with several other large computer manufacturers. How would you characterize the level of competition for computers? How are prices set in this type of competitive environment? If Expert Electronics cuts the prices for its computer systems, how will competitors likely respond?

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Question 13

Describe oligopoly in terms of the number of competitors, ease of entry into the market, similarity of goods/services offered by competing firms, and level of control over price by individual firms. Give an example of a market or industry that is an oligopoly.

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Question 14

What are the factors of production? Explain each one.

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Question 15

What is the difference between capitalism and socialism?

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Question 16

Describe perfect competition in terms of the number of competitors, ease of entry into the market, similarity of goods/services offered by competing firms, and level of control over price by individual firms. Give an example of a purely competitive market or industry.

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Question 17

Inaccuracies in forecasting an exact supply-demand schedule create surpluses and shortages. Describe what surpluses and shortages are using the concepts of supply and demand and indicate the probable impact of each upon price.

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Question 18

What is socialism?

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Quiz 1: Understanding the Canadian Business System