Question 1

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called
A)a centrally planned economy.
B)privatization.
C)a market economy.
D)communism.
E)socialism.

Accepted Answer

In a market economy, producers and consumers interact in the marketplace to determine prices and production levels based on supply and demand. This system is characterized by private ownership of resources and businesses, and minimal government intervention. The other options listed are different economic systems that don't rely on supply and demand, such as communism (government-controlled production) and socialism (collective ownership of resources).

Question 2

Which of the following is correct in describing the communist economic system?
A)The centralized planning emphasis on capital equipment and military hardware has caused declines in the prices of consumer goods.
B)Government ownership of the means of production is only temporary.
C)Most government-operated enterprises are very efficient because of central planning.
D)Overall production expands rapidly because of central planning.
E)The government owns and operates all sources of production.

Accepted Answer

In a communist economic system, the government typically owns and operates all sources of production, aiming to eliminate private ownership and distribute resources equally among the population.

Question 3

What is the difference between a command economy and a market economy?
A)A command economy is found only in communist countries,while a market economy is found only in capitalist countries.
B)A command economy is more efficient than a market economy.
C)A market economy gives greater "life satisfaction" to people.
D)A command economy relies on centralized government control of the factors of production,while in a market economy supply and demand determine production and allocation decisions.
E)There really are no significant differences between a command economy and a market economy.

Accepted Answer

A command economy is characterized by government control of the factors of production, while a market economy allows supply and demand to determine production and allocation decisions. This leads to differences in economic efficiency and individual satisfaction, among other things. Therefore, D is the correct choice. A, B, C, and E are incorrect because they are either untrue or do not accurately reflect the differences between the two types of economies.

Question 4

Communism and socialism are
A)basic forms of market economies.
B)becoming more popular.
C)extreme opposites.
D)basic forms of command economies.
E)identical forms.

Accepted Answer

Communism and socialism are basic forms of command economies where the government controls and plans the economy, rather than the market determining prices and production levels.

Question 5

Command economies are most likely to be found in
A)the newly emerging economies of southeast Asia.
B)communist and socialist nations.
C)western European countries.
D)Japan.
E)Canada and the United States.

Accepted Answer

Command economies are also known as planned economies where the government controls all aspects of the economy. Communist and socialist nations have historically implemented command economies.

Question 6

A major drawback to communism as an economic system is that
A)government control of the factors of production is only temporary.
B)people don't like communism.
C)individuals contribute according to their ability.
D)individuals receive economic benefits according to their needs.
E)production of goods and services is inefficient because of the lack of a profit incentive.

Accepted Answer

Under communism, there is a lack of profit incentive which results in inefficient production of goods and services. Since there is no reward for increased productivity or innovation, there is little motivation for individuals to work hard or invest in improving production processes. This can lead to shortages of goods and services and lower economic growth.

Question 7

Natural resources as a factor of production for mining are a practical consideration when a mining company considers
A)the ease with which ore could be mined.
B)the number of miners available to mine the ore.
C)the amount of capital required to build the mine.
D)the profit that can be made from mining the ore.
E)the number of customers who want to buy ore.

Accepted Answer

Natural resources such as ore deposits are a crucial factor for mining companies to consider because it determines the ease of extracting the valuable minerals from the earth. The presence of high-quality and accessible ore deposits can significantly impact the profitability of a mining operation, while the absence or difficulty in extracting the ores can make mining economically unfeasible. Hence, the ease with which ore could be mined is an important practical consideration. The other options provided are not directly relevant to natural resources as a factor of production for mining.

Question 8

Socialism is best described as
A)a kind of command economy in which the government owns and operates all industries.
B)a kind of command economy in which the government owns and operates large critical industries.
C)an economy that is free from any regulation or planning.
D)a market economy in which markets decide what,when,and how much to produce.
E)an economic system with elements of a market economy,but not a planned economy.

Accepted Answer

Socialism is an economic system in which the means of production, such as factories and utilities, are owned and controlled by the state or collectively by the workers. In a socialist economy, the government typically owns and operates large critical industries, such as healthcare, education, and transportation, while small businesses and industries may be privately owned and operated. It is a kind of command economy, where the government plans and coordinates economic activities to ensure social welfare and reduce income inequality.

Question 9

An economy that has a strong central government that controls labour,capital,and natural resources and has few entrepreneurs is a(n)
A)market economy.
B)command economy.
C)free-enterprise economy.
D)capitalist economy.
E)oligopolistic economy.

Accepted Answer

A command economy is one in which the government controls the factors of production and makes all the decisions about what to produce, how to produce it, and who gets it.

Question 10

Mexico allows producers and consumers to make production and allocation decisions through the mechanism of supply and demand.Such a system is called
A)socialism.
B)communism.
C)privatization.
D)nationalization.
E)a market economy.

Accepted Answer

A market economy allows producers and consumers to make production and allocation decisions through the mechanism of supply and demand. Socialism and communism are both economic systems that involve public ownership of production and distribution. Privatization refers to the process of transferring ownership of a business or industry from the government to the private sector. Nationalization refers to the opposite process, where the government takes over private industries or businesses.

Question 11

Stanislav lives in a country where all the factors of production are owned by the government.The economic system in his country is most likely
A)communism.
B)capitalism.
C)mixed market.
D)socialism.
E)It is not possible to tell with the information provided.

Accepted Answer

In communism, all factors of production are owned and controlled by the government, aligning with the description provided.

Question 12

Market economies have all of the following characteristics,except that they
A)allow businesses to charge whatever they want for their products and services.
B)encourage entrepreneurship by offering profits as an incentive.
C)require government intervention in order to prosper.
D)rely on markets,not governments,to decide what,when,and for whom to produce.
E)allow customers free choice.

Accepted Answer

Market economies rely on the laws of supply and demand to determine the price of goods and services, and do not require government intervention in order to function efficiently. Therefore, the statement that market economies require government intervention in order to prosper is incorrect.

Question 13

Market economies are considered beneficial for small businesses because they
A)provide small businesses with lots of government assistance and protection.
B)provide a central economic plan within which small businesses can easily prosper.
C)protect small businesses from the power of large corporations.
D)allow small businesses to fail.
E)allow the business to do whatever it wants as long as it doesn't break the law.

Accepted Answer

The answer of Market economies are considered beneficial for small...

Question 14

Canada is home to a(n)________ economy.
A)mixed market
B)oligopolistic
C)socialist
D)market
E)command

Accepted Answer

Canada's economy is a mixed market, meaning it incorporates elements of both a free market system and government intervention. While businesses operate independently and individuals have the freedom to own property and make their own economic decisions, the government still plays a significant role in regulating industries, providing public goods and services, and addressing social issues through various policies and programs.

Question 15

What can we say about the dollar value of business-to-business (B2B)transactions compared to the dollar value of business-to-consumer (B2C)transactions?
A)B2B transactions have a lower dollar value because there are fewer businesses than there are consumers.
B)The dollar value of B2B transactions exceeds that of B2C transactions.
C)The dollar value of B2B transactions must equal the dollar value of B2C transactions.
D)It is not possible to determine whether the dollar value of B2B transactions is less than or more than the dollar value of B2C transactions because of industrial secrecy.
E)It is not possible to determine whether the dollar value of B2B transactions is less than or more than the dollar value of B2C transactions because of data limitations.

Accepted Answer

B2B transactions generally involve larger purchases of goods or services, as they are made on behalf of businesses rather than individuals. Therefore, the dollar value of B2B transactions tends to exceed that of B2C transactions.

Question 16

John lives in a country where producers and consumers control production,and where allocation decisions are made through the mechanism of supply and demand.John lives in a country with a ________ economy.
A)privatized
B)socialist
C)communist
D)market
E)nationalized

Accepted Answer

John lives in a country with a market economy, where the allocation of resources is determined by the forces of supply and demand. This type of economy is characterized by private ownership of businesses and resources, and individuals make their own economic decisions without government intervention.

Question 17

An economic system that permits private ownership and control of small businesses but where the government controls large critical industries is known as
A)a mixed economy.
B)socialism.
C)communism.
D)capitalism.
E)mercantilism.

Accepted Answer

The answer of An economic system that permits private ownership...

Question 18

Socialist economies may slow down economic growth because
A)management positions in state-controlled industries are often filled based on political considerations.
B)they have too few regulations concerning product safety.
C)they are found in countries where people don't have many skills.
D)they are usually found in countries with cold climates.
E)they encourage excessive unionization of employees.

Accepted Answer

In socialist economies, management positions in state-controlled industries may be filled based on political considerations rather than merit, which can lead to inefficiencies and slow down economic growth.

Question 19

Which of the following is correct about?
A)There is a general consensus that command economies are more efficient than market economies because a centralized government can consider a wider range of economic factors when decisions are made.
B)In recent years,more and more countries have rejected communism and embraced more market-based economies.
C)Socialism is the most extensive command economic system because government owns all the major industries.
D)Support for a free market economy is strongest in North Korea.
E)All of these are correct.

Accepted Answer

In recent years, many countries have moved away from communism towards market-based economies, seeking the benefits of market efficiency and innovation.

Question 20

Which country has a command economy?
A)Australia
B)Japan
C)Canada
D)Germany
E)North Korea

Accepted Answer

North Korea has a command economy where the government makes all economic decisions and controls all resources and production.

Quiz 1: Understanding the Canadian Business System

The economic system in which producers and consumers control production and allocation decisions through supply and demand is called

Which of the following is correct in describing the communist economic system?

What is the difference between a command economy and a market economy?

Communism and socialism are

Command economies are most likely to be found in

A major drawback to communism as an economic system is that

Natural resources as a factor of production for mining are a practical consideration when a mining company considers

Socialism is best described as

An economy that has a strong central government that controls labour,capital,and natural resources and has few entrepreneurs is a(n)

Mexico allows producers and consumers to make production and allocation decisions through the mechanism of supply and demand.Such a system is called

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

Market economies have all of the following characteristics,except that they

Market economies are considered beneficial for small businesses because they

Canada is home to a(n) ________ economy.

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

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

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

Socialist economies may slow down economic growth because

Which of the following is correct about?

Which country has a command economy?