Question 1

The government is a guardian of society by:

Accepted Answer

B

Question 2

Explain the role of the Governor General

Accepted Answer

The Governor General is the holder of executive authority in Canada's government. However, they typically play a passive administrative role and usually follow the advice of the prime minister. The Governor General does have the power to request further information on bills before signing them into law.

Question 3

Why should government not play the role of guardian of business?

Accepted Answer

When the government plays the role of guardian of business, it can promote a political agenda, causing an uneven playing field and benefiting only a few. Additionally, it can create dependency on the government, which goes against the principles of free and open markets. This can ultimately undermine public confidence in politicians.

Question 4

Restrictive taxes or regulatory taxes are:

Accepted Answer

Restrictive taxes, also known as regulatory taxes, are primarily aimed at controlling or curbing the use of specific products or services. These taxes are used to discourage the consumption of goods or services that are deemed harmful to public health or the environment. Examples of restrictive taxes include sin taxes on tobacco and alcohol or taxes on carbon emissions.

Question 5

_________________ is a type of tax that is considered a value-add tax or a tax that is paid at each steps of the manufacturing process

Accepted Answer

The answer of _________________ is a type of tax that...

Question 6

What are the ways governments can provide assistance to businesses?

Accepted Answer

All three options (grants, loans, subsidies) can provide financial assistance to businesses, and different businesses may benefit from different forms of assistance depending on their needs and circumstances. Grants are non-repayable funds that can be used to fund particular activities or projects, such as research and development or hiring additional staff. Loans are repayable funds that can be used for a variety of purposes, such as buying equipment or expanding operations. Subsidies are funds provided by the government to reduce the cost of certain activities or products, which can help businesses compete more effectively in the marketplace. Together, these options can provide a range of support to businesses of varying sizes, sectors, and structures.

Question 7

________________ is an accusation against an exporting country of pricing its product below cost or below the cost of the target country's products

Accepted Answer

Dumping is the accusation against an exporting country of pricing its product below cost or below the cost of the target country's products. Tariffs are taxes imposed on imports to protect domestic industries. Foreign direct investment refers to investment in a foreign company or setting up a subsidiary abroad.

Question 8

What are cabinet members?

Accepted Answer

Cabinet members are Members of Parliament who are appointed by the prime minister to oversee an assigned government or department.

Question 9

The CRTC and Canada post are examples of what type of enterprise?

Accepted Answer

The CRTC and Canada post are both Crown Corporations, which are enterprises that are owned by the government but function as independent businesses.

Question 10

Businesses should be free to make and sells what they please and, consequently, reflects the notion that government should not interfere with the economic affairs of business. This is referred to as:

Accepted Answer

This is the definition of laissez faire, which advocates for a hands-off approach by the government in the economic affairs of businesses. Capitalism and competition are related concepts, but they do not fully encompass the principle of government non-interference.

Question 11

All developed countries have some sort of economic or business enterprise system that determines the following:

Accepted Answer

Both A and B are determined by the economic or business enterprise system of a country. Who produces and distributes the goods and services may vary depending on the specific system in place, but it is not always determined by the system itself. Therefore, C is not a necessary aspect of the system.

Question 12

The Canadian economic system has been described as a(n):

Accepted Answer

The Canadian economic system is a mixed system, which means that it combines aspects of capitalism and socialism. It has a market economy with private enterprise and competition, but also a significant government role in regulating and providing social services such as healthcare and education. This mix of economic systems is designed to promote both economic growth and social welfare.

Question 13

Identify the two major criticisms of subsidies

Accepted Answer

The two major criticisms of subsidies are that they allow businesses to avoid managing their costs without external help or "handouts" from the government, which creates unfair competition, and they constitute a form of trade barrier. Option B suggests advantages of subsidies, which is not a valid criticism. Option C is incorrect because it confuses the criticisms with the benefits of subsidies. Option D is incorrect because the question specifically asks for the criticisms of subsidies.

Question 14

What is a bailout?

Accepted Answer

A bailout can come in different forms such as direct financial contribution, loan or loan guarantees, and it is usually provided by the government to prevent financial collapse of an organization or industry. Therefore, all the options (A, B, and C) are correct.

Question 15

_____________ is the largest sources of revenue for municipal governments. The revenue gained from this form of tax is typically used to fund the operating costs of the municipal government and the services that it provides.

Accepted Answer

Property taxes are the largest sources of revenue for municipal governments. These taxes are levied on properties owned by individuals and businesses within the municipality, and the revenue gained from this form of tax is typically used to fund the operating costs of the municipal government and the services that it provides. Goods and Services Taxes (A), Individual Income Taxes (B), and Corporate Taxes (D) are sources of revenue for federal and provincial governments, not municipal governments.

Question 16

The LCBO is an example of what type of business?

Accepted Answer

The LCBO (Liquor Control Board of Ontario) is a Crown Corporation in Ontario, Canada. This means that it is owned by the government and operates with the goal of providing a public service, in this case, regulating the sale of alcohol in the province. Non-profit corporations and limited liability partnerships are not applicable to the LCBO's type of business.

Question 17

Identify at least two risks that have been associated with government nurturing young industries

Accepted Answer

Option A highlights the risk of protectionism, which can lead to complacency and a lack of innovation among domestic industries. Option B raises the issue of consumer harm, as high tariffs or other barriers to foreign competition can result in higher prices for goods and services. Both options illustrate potential risks associated with government nurturing of young industries. Therefore, the best answer is C.

Question 18

What are the rationales for having Crown Corporations?

Accepted Answer

Crown Corporations are created to protect industries crucial to the economy and to nationalize industries that are considered as "national monopolies" that could exploit people or sectors. These two rationales are included in choices A and C, respectively. Thus, the best choice is D, or A & C.

Question 19

The Tax Court of Canada and the Supreme Court of Canada represent what type of court system?

Accepted Answer

The Tax Court of Canada and the Supreme Court of Canada represent the Federal Judiciary, which is responsible for interpreting and applying federal laws and regulations across the country. The lowest level Judiciary and Provincial Judiciary are different court systems that deal with different types of cases and operate at different levels of jurisdiction.

Question 20

Government involvement is necessary due to this type of market system

Accepted Answer

In an imperfect competition market system, there are usually a limited number of firms dominating the market, meaning that they have significant market power. In such a scenario, the firms can exploit their power by charging higher prices or reducing output to drive up profits, ultimately hurting the consumers. To prevent this, government intervention is necessary in the form of antitrust laws and regulations to promote fair competition and ensure consumer protection. A mixed market system also involves government intervention, but it is not a necessary consequence of the system itself. A communistic market system, on the other hand, is characterized by complete government control and regulation of the market, rendering private enterprises and competition non-existent.

Quiz 9: Section 3: The Leadership Challenge