Deck 3: Economic Challenges Facing Business Today

Question 1

__________ typically slope downward, meaning that lower and lower prices attract larger and larger purchases.

A) Demand curves
B) Supply curves
C) Equilibrium levels
D) Market prices

Answer 1

A

Question 2

If labour hours increase, the use of natural resources remains the same and output remains the same, productivity will

A) increase.
B) remain the same.
C) decrease.
D) cannot be determined.

Answer 2

C

Question 3

The market structure that is most likely to be regulated is

A) socialism.
B) communism.
C) capitalism.
D) monopoly.

Answer 3

D

Question 4

The study of a country's overall economic issues is called

A) economics.
B) national economics.
C) macroeconomics.
D) current economics.

Question 5

Canada has which of the following economic systems?

A) capitalism
B) socialism
C) communism
D) mixed market

Question 6

Changes in the demand curve can be caused by all of the following factors except

A) customer preference.
B) buyers' incomes.
C) the number of suppliers.
D) future expectations of income or wealth.

Question 7

In which market structure are there large numbers of buyers and sellers, each of whom has some control over price?

A) pure competition
B) monopolistic competition
C) oligopoly
D) monopoly

Question 8

When we examine the exchanges that companies and societies make as a whole, we are focusing on what system operating in different nations?

A) relationship system
B) economic system
C) environmental
D) private enterprise

Question 9

Macroeconomics is the study of small economic units such as households and individual businesses.

Question 10

The equilibrium point is

A) easy to predict.
B) the prevailing market price.
C) set by suppliers.
D) constant.

Question 11

The willingness and ability of buyers to purchase goods and services at different prices is called

A) demand.
B) supply.
C) an economic system.
D) owner's rights.

Question 12

New competitors are discouraged in an oligopoly primarily because of

A) lack of knowledge.
B) market already too crowded with competitors.
C) large investment in start-up costs.
D) family dominated market.

Question 13

Natural resources includes which of the following?

A) textiles
B) land
C) concrete
D) the environment

Question 14

Some nations have an economic system where the government owns and operates the major industries. This system is called

A) capitalism.
B) socialism.
C) communism.
D) fascism.

Question 15

Microeconomics is the study of

A) small economic units such as individual consumers.
B) the willingness of buyers to produce goods and services.
C) the ability of consumers to purchase products.
D) price and profits.

Question 16

The four basic types of competition that take shape in a private enterprise system are

A) macroeconomics, microeconomics monopoly, and capitalism.
B) socialism, democracy, communism, and capitalism.
C) pure competition, monopolistic competition, oligopoly, and monopoly.
D) recession, depression, inflation, and deflation.

Question 17

Most developed nations have economies that are based on the private economic system, also known as

A) capitalism.
B) planned economy.
C) oligopoly.
D) monopoly.

Question 18

Supply is

A) the willingness of buyers to purchase goods and services.
B) the willingness of sellers to provide goods and services.
C) what people want to buy.
D) supply and demand.

Question 19

Economics is the study of

A) the choices people and governments make when allocating scarce resources.
B) profit and loss at companies.
C) tax and interest policies.
D) supply and demand.

Question 20

An economic system where all the property is shared equally by the people under the direction of a strong central government is called

A) polopoly.
B) monopoly.
C) communism.
D) oligopoly.

Question 21

A ________ budget occurs when total revenues raised by taxes and fees equal the total government spending for the year.

A) surplus
B) constraint
C) deficit
D) balanced

Question 22

Which of the following is not a current economic challenge?

A) the economic threat of continued international terrorism.
B) the growth of China and India.
C) the aging of the world's population.
D) the growth of USA.

Question 23

How does the Canadian government track price changes?

A) Consumer Price Index (CPI)
B) Consumer Shopping Measurement (CSM)
C) Gross Domestic Product (GDP)
D) Index of Canadian Prices (ICP)

Question 24

Core inflation rate is the inflation rate of an economy after ______and______ prices are removed.

A) energy; food
B) transportation; housing
C) entertainment; clothing
D) utilities; education

Question 25

Which form of unemployment is comprised of people who remain unemployed for long periods of time, often with little hope of finding a job?

A) frictional
B) structural
C) seasonal
D) cyclical

Question 26

A budget ________ occurs when government spends less than it raises through taxes and fees.

A) surplus
B) constraint
C) deficit
D) balance

Question 27

The conversion of government-owned and operated companies to privately held businesses is

A) nationalization.
B) privatization.
C) public sector shifting.
D) mixed marketing.

Question 28

The money owed by government to individuals, businesses and government agencies is called

A) Gross Domestic Product.
B) National debt.
C) Monetary policy.
D) Fiscal policy.

Question 29

A budget ________ occurs when government spends more than it raises through taxes and fees.

A) surplus
B) constraint
C) deficit
D) balance

Question 30

During which stage of the business cycle does unemployment rise and inflation fall?

A) growth
B) decline
C) recession
D) prosperity

Question 31

Which form of unemployment can best be addressed by economic stimulus actions?

A) frictional
B) structural
C) seasonal
D) cyclical

Question 32

The relationship between the number of units produced and the number of human and other production inputs needed to produce them is called

A) economics.
B) efficiency.
C) productivity.
D) prosperity.

Question 33

__________ reduces the money supply to curb rising prices, overexpansion, and concerns about overly rapid economic growth.

A) Expansionary monetary policy
B) Restrictive monetary policy
C) Monetary policy
D) Fiscal policy

Question 34

________ policy is formulated by the Bank of Canada; ________ policy is formulated by the government.

A) Monetary; fiscal
B) Tax; spending
C) Fiscal; monetary
D) Executive; fiscal

Question 35

The total of all goods and services produced within a country is called

A) Economics.
B) Macroeconomics.
C) Gross Domestic Product.
D) Prosperity.

Question 36

Which form of unemployment is the joblessness of people in the workforce who are temporarily not working but are looking for jobs?

A) frictional
B) structural
C) seasonal
D) cyclical

Question 37

Which of the following is not one of the five key challenges the text lists for maintaining 21st century competitiveness?

A) threat of terrorism
B) shift of the global information economy
C) growth in Russia and Europe
D) aging of the world's population

Question 38

During which stage of the business cycle is unemployment low and business expanding?

A) growth
B) decline
C) recession
D) prosperity

Question 39

An economic situation marked by soaring prices is called

A) economic growth.
B) superinflation.
C) hyperinflation.
D) disinflation.

Question 40

________ consists of government spending and taxation decisions to control inflation, encourage economic growth, and balance the Federal budget.

A) National budgeting
B) Fiscal policy
C) Expansionary monitory policy
D) Structured unemployment