Question 1

Which factor of production is Imperial Oil trying to increase when it spends large sums of money in an attempt to find new oil fields?

Accepted Answer

Natural resources

Question 2

Stan lives in a country where all the factors of production are owned by the government.The economic system in his country is

Accepted Answer

communism.

Question 3

Something that would contribute directly to improving labour as a factor of production would be

Accepted Answer

better education for more of the population.

Question 4

Market economies are considered beneficial for small businesses because they

Accepted Answer

allow the business to do whatever it wants as long as it doesn't break the law.

Question 5

Which of the following is correct with respect to mixed market economies?

Accepted Answer

As a result of the fragile world economy,there is a trend toward increased government regulation of business in mixed market economies.

Question 6

John lives in a country where producers and consumers control production,and allocation decisions are made through the mechanism of supply and demand.John lives in a country with a _________ economy.

Accepted Answer

market

Question 7

"Embrace the opportunities and accept the risks" is a phrase that best characterizes the __________ attitude.

Accepted Answer

entrepreneurial

Question 8

Which of the following is correct with respect to input and output markets?

Accepted Answer

Consumer buying patterns provide information that helps companies decide which products to produce.

Question 9

Helga lives in a country where the government owns and operates selected major industries.The economic system in her country is most likely to be

Accepted Answer

socialism.

Question 10

Sandy is responsible for monitoring compliance with regulations in her company.She needs to know that the important areas of government regulation are

Accepted Answer

protecting competition,protecting consumers,protecting social goals,and protecting the environment.

Question 11

Socialism is best described as

Accepted Answer

a kind of command economy in which the government owns and operates large critical industries.

Question 12

Canada is home to a(n)________ economy.

Accepted Answer

mixed market

Question 13

An economic system that permits private ownership and control of small businesses but where the government controls large critical industries is known as

Accepted Answer

socialism.

Question 14

A major drawback to communism as an economic system is that

Accepted Answer

production of goods and services is inefficient because of the lack of a profit incentive.

Question 15

Which of the following is correct with regard to the communist economic system?

Accepted Answer

The government owns and operates all sources of production.

Question 16

What is the major source of capital for small businesses?

Accepted Answer

Personal investment by owners

Question 17

Which of the following is an example of a natural resource?

Accepted Answer

Land,water,and mineral deposits

Question 18

What can we say about the number of business-to-business (B2B)transactions compared to the number of business-to-consumer (B2C)transactions?

Accepted Answer

There are more B2B transactions than B2C transactions.

Question 19

The federal government sold the Lester B.Pearson International Airport in Toronto to a group of entrepreneurs,which then set up the Greater Toronto Airports Authority.This sale is an example of

Accepted Answer

privatization.

Question 20

In which economic system will profit motivate entrepreneurs to use resources efficiently and to produce goods that consumers want?

Accepted Answer

A market economy

Quiz 1: Understanding the Canadian Business System