Question 1

If we graph the supply and demand curves for a product at a specific time,the point on the graph where the two curves intersect is called the stress point.

Accepted Answer

A) True 
 B)False

Question 2

Some wages,tax brackets,interest rates,and government benefits are based on the CPI.

Accepted Answer

A) True 
 B)False

Question 3

The CPI is based on the prices of a carefully selected basket of goods,all of which consumers can purchase at a typical supermarket.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following would be a topic emphasized in a microeconomics class?

Accepted Answer

A)  How a nation's GDP is computed.
B)  The reasons why the unemployment rate for the economy is rising or falling.
C)  How market conditions determine the price of a specific product.
D)  How the government can use fiscal and monetary policies to stabilize the economy.E) None of the above
F) A) and B)

Question 5

A surplus currently exists in the market for Whatzits.In a free market system,the government must step in and buy any Whatzits that consumers do not buy in order to eliminate the surplus and establish equilibrium.

Accepted Answer

A) True 
 B)False

Question 6

In a mixed economy,some allocation of resources is made by government,and some by the market.

Accepted Answer

A) True 
 B)False

Question 7

The presence of competition in free markets:

Accepted Answer

A)  is undesirable because it results in unnecessary duplication of efforts.
B)  typically results in better quality and lower prices.
C)  is rare,since most markets eventually evolve into monopolies.
D)  is undesirable,because one big firm can usually produce goods more efficiently than a large number of small firms.E) A) and B)
F) C) and D)

Question 8

Most communist countries today are suffering from severe economic problems.

Accepted Answer

A) True 
 B)False

Question 9

To understand the situation and conditions in which Canadian business operates you need to:

Accepted Answer

A)  have some grasp of economics
B)  be aware of the global environment
C)  understand the role of federal and provincial governments in Canada
D)  all of the choices are correctE) A) and B)
F) C) and D)

Question 10

The consumer price index (CPI)measures what is happening to prices at the wholesale level.

Accepted Answer

A) True 
 B)False

Question 11

In capitalist countries,the government decides what to produce and how the goods and services will be produced.

Accepted Answer

A) True 
 B)False

Question 12

Adam Smith believed that the key to creating rising standards of living was to limit population growth.

Accepted Answer

A) True 
 B)False

Question 13

Both socialism and communism are variations of:

Accepted Answer

A)  command economies.
B)  competitive economies.
C)  free-market economies.
D)  plutocratic systems.E) B) and C)
F) B) and D)

Question 14

Economics is the study of how:

Accepted Answer

A)  to invest wisely in the stock market.
B)  to employ resources to produce goods and services and distribute them among competing groups and individuals.
C)  sophisticated statistical techniques can be used to make predictions about the evolution of society over the long run.
D)  people govern themselves in a democratic society.E) A) and C)
F) A) and D)

Question 15

__________ is a condition in which the average level of prices is actually falling.

Accepted Answer

A)  Deflation
B)  Disinflation
C)  Stagflation
D)  UnflationE) B) and C)
F) A) and B)

Question 16

The Canadian economic system can be described as a:

Accepted Answer

A)  mixed economy.
B)  capitalist economy.
C)  socialist economy.
D)  communist economy.E) B) and D)
F) A) and D)

Question 17

Adam Smith believed that since businesspeople are motivated to improve their own prosperity,their actions are unlikely to benefit society as a whole.

Accepted Answer

A) True 
 B)False

Question 18

No country is solely capitalist.What issues does the Canadian government get involved in?

Accepted Answer

The text notes that Canadian governments...

Question 19

According to Statistics Canada,to be classified as unemployed,a person must have tried to find a job within the past four weeks.

Accepted Answer

A) True 
 B)False

Question 20

A collapse in the national banking system of Lasia has resulted in a condition where prices are declining.This condition is known as:

Accepted Answer

A)  disinflation.
B)  deflation.
C)  contra inflation.
D)  overproduction.E) A) and D)
F) A) and C)

Exam 2: How Economic Issues Affect Business

Adam Smith believed that the key to creating rising standards of living was to limit population growth.

Correct AnswerverifiedShow Answer

In capitalist countries,the government decides what to produce and how the goods and services will be produced.

Correct AnswerverifiedShow Answer

Economics is the study of how:

Correct AnswerverifiedShow Answer

Both socialism and communism are variations of:

Correct AnswerverifiedShow Answer

Adam Smith believed that since businesspeople are motivated to improve their own prosperity,their actions are unlikely to benefit society as a whole.

Correct AnswerverifiedShow Answer

Most communist countries today are suffering from severe economic problems.

Correct AnswerverifiedShow Answer

In a mixed economy,some allocation of resources is made by government,and some by the market.

Correct AnswerverifiedShow Answer

Some wages,tax brackets,interest rates,and government benefits are based on the CPI.

Correct AnswerverifiedShow Answer

Which of the following would be a topic emphasized in a microeconomics class?

Correct AnswerverifiedShow Answer

A collapse in the national banking system of Lasia has resulted in a condition where prices are declining.This condition is known as:

Correct AnswerverifiedShow Answer

No country is solely capitalist.What issues does the Canadian government get involved in?

Correct AnswerverifiedThe text notes that Canadian governments...View AnswerShow Answer

The presence of competition in free markets:

Correct AnswerverifiedShow Answer

To understand the situation and conditions in which Canadian business operates you need to:

Correct AnswerverifiedShow Answer

If we graph the supply and demand curves for a product at a specific time,the point on the graph where the two curves intersect is called the stress point.

Correct AnswerverifiedShow Answer

A surplus currently exists in the market for Whatzits.In a free market system,the government must step in and buy any Whatzits that consumers do not buy in order to eliminate the surplus and establish equilibrium.

Correct AnswerverifiedShow Answer

The Canadian economic system can be described as a:

Correct AnswerverifiedShow Answer

__________ is a condition in which the average level of prices is actually falling.

Correct AnswerverifiedShow Answer

According to Statistics Canada,to be classified as unemployed,a person must have tried to find a job within the past four weeks.

Correct AnswerverifiedShow Answer

The consumer price index (CPI)measures what is happening to prices at the wholesale level.

Correct AnswerverifiedShow Answer

The CPI is based on the prices of a carefully selected basket of goods,all of which consumers can purchase at a typical supermarket.

Correct AnswerverifiedShow Answer

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The text notes that Canadian governments...
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