Question 1

Which of the following statements is most correct with respect to government in its role as regulator?
A)Business complains that the Competition Bureau is too slow in approving or denying merger plans.
B)The government really has very little power in its role as regulator.
C)Because of the move toward deregulation,federal and provincial governments have become less and less involved in regulating business activity.
D)The main areas of government regulation of business are achieving social goals,protecting consumers,and providing assistance to small business firms.
E)Studies have shown that government regulation reduces the effectiveness of business firms.

Accepted Answer

The answer of Which of the following statements is most...

Question 2

The three main ways in which business can influence government policy are
A)advertising,lobbyists,and trade associations.
B)political contributions,letters to the editors of newspapers,and advertising.
C)advertising,trade associations,and political contributions.
D)trade associations,lobbyists,and letters to the editors of newspapers.
E)lobbyists,political contributions,and advertising.

Accepted Answer

The answer of The three main ways in which business...

Question 3

Jose is from Guatemala.He is unsure about the nature of business in Canada.You point out that a typical business in Canada operates in fundamentally the same way as a business in
A)the People's Republic of China.
B)Poland.
C)Peru.
D)England.
E)Japan.

Accepted Answer

England has a similar business culture and operating style to Canada, with a focus on professionalism, punctuality, and formal communication. Many Canadian business practices have been inherited from English traditions.

Question 4

John has just received a rather large increase in salary,but he is upset because he feels that he should not be charged a higher rate of tax on this extra money.John is being taxed by a ________ tax system.
A)provincial
B)federal
C)progressive
D)restrictive
E)regressive

Accepted Answer

John is being taxed by a progressive tax system, which means that as his income increases, he will be charged a higher rate of tax on the additional income. This is designed to ensure that those who can afford to pay more, do pay more in taxes, in order to help fund government services and social programs.

Question 5

Sandy is responsible for monitoring compliance with regulations in her company.She needs to know that the important areas of government regulation are
A)protecting competition and upholding environmental regulations.
B)protecting social goals,upholding environmental regulations,and protecting shareholder rights.
C)protecting competition,protecting consumers,and upholding environmental regulations.
D)protecting competition,protecting consumers,protecting social goals,and protecting the environment.
E)protecting shareholder rights,and following business law.

Accepted Answer

The important areas of government regulation that Sandy needs to monitor include protecting competition, protecting consumers, protecting social goals, and protecting the environment. These areas encompass a wide range of regulatory requirements that companies must comply with in order to operate legally and ethically. It is important for Sandy to be knowledgeable and up-to-date on these regulations to ensure that her company avoids any legal or ethical infractions.

Question 6

Which of the following is correct with regard to public-private partnerships?
A)These partnerships have resulted in windfall profits for the businesses that have gotten involved in them.
B)These partnerships have resulted in bad public relations for the businesses that have gotten involved in them.
C)These partnerships have created a monopoly situation for the businesses that have gotten involved in them.
D)These partnerships cost more money than the traditional approach (where the government puts up the money and then hires contractors to do the necessary work).
E)These partnerships have generally been failures in terms of the quality of service provided.

Accepted Answer

Public-private partnerships often involve higher costs than traditional government procurement methods due to the complexity of contracts, financing arrangements, and the need for private sector profit.

Question 7

Which of the following statements is correct with regard to the Competition Act?
A)A company can cut prices in one region of Canada while selling at a higher price everywhere else even if this substantially lessens competition.
B)Businesses are generally satisfied that the Competition Bureau moves fairly quickly in approving or denying merger plans.
C)Pyramid selling is permitted as long as participant know they are involved in a pyramid selling scheme and they know they are not allowed to make windfall profits from the scheme.
D)The mere existence of a conspiracy is assumed to be proof that competition has been reduced.
E)All of these are correct.

Accepted Answer

The answer of Which of the following statements is correct...

Question 8

Which of the following is correct with respect to input and output markets?
A)In the input market,firms supply goods and services in response to demand on the part of households.
B)In the output market,firms buy resources from households,which then supply those resources.
C)Consumer buying patterns provide information that helps companies decide which products to produce.
D)Consumers are restricted in the companies they can work for.
E)Input and output markets exist only in communist countries.

Accepted Answer

Consumer buying patterns provide information to companies about which products are in demand and which should be produced. This relates to the output market where firms sell products to households based on their preferences and demand. The other choices are incorrect. In the input market, firms buy resources from households or other firms. Consumers are not restricted in the companies they can work for, as they have the freedom to choose their preferred employer. The statement that input and output markets exist only in communist countries is also false as they exist in every market-oriented economy.

Question 9

The GST is considered a regressive tax because
A)food and drugs are often exempt.
B)the more a person makes,the lower the rate of sales tax applied to that person's purchase.
C)it is unfair.
D)poorer people pay a higher percentage of their income than richer people.
E)it is designed to discourage the purchase of certain products.

Accepted Answer

A regressive tax is one where lower-income individuals pay a higher percentage of their income on the tax than higher-income individuals. In the case of the GST, everyone pays the same rate regardless of income, so lower-income individuals end up spending a higher percentage of their income on the tax. This makes the GST a regressive tax.

Question 10

Why are sales taxes called regressive taxes?
A)Because food and drugs are often exempt
B)Because the more one makes,the lower the rate of sales tax that is applied to one's purchases
C)Because poorer people pay a higher percentage of their income than richer people
D)Because it applies to sales taxes
E)Because they discourage the purchase of some products

Accepted Answer

Sales taxes are regressive because they disproportionately affect lower-income individuals, who generally spend a higher percentage of their income on taxable goods compared to higher-income individuals. Wealthier individuals may be able to save more of their income, thus spending a lower percentage of it on taxable goods, resulting in a lower overall tax burden compared to lower-income individuals.

Question 11

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
A)socialism.
B)freedom of choice.
C)entrepreneurship.
D)deregulation.
E)privatization.

Accepted Answer

The sale of the airport to a group of entrepreneurs and their formation of the Greater Toronto Airports Authority signifies that the ownership and control of the airport has been transferred from the government to the private sector. This is a clear example of privatization, which involves transferring the ownership and control of certain assets or services from the public sector to the private sector.

Question 12

Which of the following is correct with respect to the issue of government taxation?
A)Progressive revenue taxes are harder on low-income people than on high-income people.
B)Revenue taxes are designed primarily to encourage people to buy certain kinds of goods and avoid buying other kinds.
C)Restrictive taxes prevent businesses from expanding.
D)Regressive revenue taxes are levied at the same rate regardless of a person's income.
E)All of the statements are correct.

Accepted Answer

Regressive revenue taxes are levied at the same rate regardless of a person's income. This means that low-income people are disproportionately affected by these taxes as they may have a larger impact on their overall income and ability to meet basic needs. Progressive revenue taxes, on the other hand, are designed to make high-income individuals pay a larger proportion of their income in taxes to help alleviate this burden on lower-income individuals. Restrictive taxes may have an impact on businesses, but this is not necessarily an issue of taxation itself. Revenue taxes are generally not designed to encourage people to buy certain goods over others, but rather to generate revenue for the government.

Question 13

Nutrition labelling and claims are intended to provide consumers with information to aid them in the selection of a healthy diet aimed at reducing risk of premature illness and death due to diet-related chronic diseases.Insufficient labelling is a violation of which act?
A)Food and Drug Act
B)Weights and Measures Act
C)Advertising and Packaging Act
D)Textile Labelling Act
E)Consumer Protection Act

Accepted Answer

Insufficient labelling is a violation of the Food and Drug Act in Canada. This act provides guidelines for the labelling and advertising of food products to ensure that consumers are not misled or deceived. The act also sets standards for food safety and quality. Other acts listed are not directly related to labelling requirements for food products.

Question 14

Incentive programs are designed to
A)encourage families to have more babies.
B)encourage businesses to locate in economically depressed parts of the country.
C)create "corporate welfare bums."
D)encourage families to move to depressed parts of the country.
E)reimburse businesses for making unprofitable but necessary products.

Accepted Answer

Incentive programs are designed to encourage businesses to locate in economically depressed parts of the country by offering tax breaks, grants, or other financial incentives. This is aimed at increasing job opportunities and boosting the local economy.

Question 15

In which economic system will profit motivate entrepreneurs to use resources efficiently and to produce goods that consumers want?
A)A centrally planned economy
B)Communism
C)A market economy
D)Socialism
E)A barter economy

Accepted Answer

In a market economy, entrepreneurs are motivated by the potential for profit to efficiently allocate resources and produce goods that consumers want. In centrally planned economies, production decisions are made by the government, while in communism there is no private ownership and therefore no profit motivation. Socialism aims for more equal distribution of resources and may not rely solely on profit motivation, while a barter economy involves the exchange of goods without the use of currency or profit.

Question 16

Which law forbids most monopolies in Canada?
A)Consumer Protection Act
B)Lobbying Act
C)Fair Trade Act
D)Competition Act
E)Environmental Contaminants Act

Accepted Answer

The Competition Act is Canada's main law that forbids most monopolies and anti-competitive behavior. It is designed to promote competition and to protect consumers from anti-competitive practices such as price-fixing, market sharing, and mergers that may substantially lessen competition. The other laws mentioned may have some relevance to the issue of monopolies and anti-competitive behavior, but they are not the primary legislation that deals with it.

Question 17

Which of the following is correct with respect to mixed market economies?
A)They have features that are not found in either command or market economies.
B)As a result of recent financial turmoil,there is a trend toward increased government regulation of business in mixed market economies.
C)Very few countries have this type of system.
D)There is a trend toward increased government ownership of business in mixed market economies.
E)The mixed market economy is the best type of economic system.

Accepted Answer

Mixed market economies often see increased government regulation, especially after financial crises, to stabilize and protect the economy.

Question 18

When Labatt sales representatives gave money to store operators who agreed to not lower prices on some brands of beer,the company was prosecuted for engaging in
A)bait-and-switch advertising.
B)resale price maintenance.
C)a pyramid scheme.
D)selling mislabeled products.
E)a violation of the Beer Act.

Accepted Answer

Resale price maintenance involves a manufacturer or supplier dictating the minimum price at which a retailer can sell their product, which is what Labatt was doing by giving money to store operators to not lower prices.

Question 19

The role of government in our economic system includes all of the following except
A)customers.
B)innovators.
C)competitors.
D)regulators.
E)taxation agents.

Accepted Answer

The role of government in our economic system includes being customers (purchasing goods and services from private businesses), regulators (establishing laws and regulations to ensure fair competition and protect consumers), taxation agents (collecting taxes to finance government spending), and competitors (providing goods and services through government-run entities). However, the government does not typically act as innovators in the economy. This is usually left to private businesses in the marketplace.

Question 20

Which of the following is correct regarding the Competition Act?
A)The Act prohibits agreements between companies that reduce competition.
B)The government must prove that agreements between companies actually reduce competition.
C)Recent changes to the Act have reduced fines for misleading marketing practices because it has been shown that these fines don't have any effect.
D)Surveys of business executives show that they think the Competition Bureau is quite quick in approving or denying merger requests.
E)All of the above

Accepted Answer

The Competition Act prohibits agreements between companies that reduce competition, aiming to maintain fair competition in the market.

Quiz 1: Understanding the Canadian Business System

Which of the following statements is most correct with respect to government in its role as regulator?

The three main ways in which business can influence government policy are

Jose is from Guatemala.He is unsure about the nature of business in Canada.You point out that a typical business in Canada operates in fundamentally the same way as a business in

John has just received a rather large increase in salary,but he is upset because he feels that he should not be charged a higher rate of tax on this extra money.John is being taxed by a ________ tax system.

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

Which of the following is correct with regard to public-private partnerships?

Which of the following statements is correct with regard to the Competition Act?

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

The GST is considered a regressive tax because

Why are sales taxes called regressive taxes?

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

Which of the following is correct with respect to the issue of government taxation?

Nutrition labelling and claims are intended to provide consumers with information to aid them in the selection of a healthy diet aimed at reducing risk of premature illness and death due to diet-related chronic diseases.Insufficient labelling is a violation of which act?

Incentive programs are designed to

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

Which law forbids most monopolies in Canada?

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

When Labatt sales representatives gave money to store operators who agreed to not lower prices on some brands of beer,the company was prosecuted for engaging in

The role of government in our economic system includes all of the following except

Which of the following is correct regarding the Competition Act?