The Canadian Business System CHAPTER 1. Copyright © 2015 Pearson Canada Inc. Business Essentials, 7Ce 1-2 Which of the following organizations represents

The Canadian Business System

CHAPTER 1

Copyright © 2015 Pearson Canada Inc. Business Essentials, 7Ce 1-2

Which of the following organizations represents a not-for profit organization?

A) A small convenience store

B) A labour union

C) A multinational retailer

D) A newly formed start-up clothing boutique


Which of the following organizations represents a not-for profit organization?

A) A small convenience store

B) A labour unionB) A labour union

C) A multinational retailer

D) A newly formed start-up clothing boutique


Neha’s Coffee House sold 10 000 cups of coffee at $1.75 each. Her operating expenses were $1500 for rent, $500 for insurance, $8000 for wages, and $5000 for materials. Neha’s profit is:

A) $1500

B) $2000

C) $2500

D) $3000


Neha’s Coffee House sold 10 000 cups of coffee at $1.75 each. Her operating expenses were $1500 for rent, $500 for insurance, $8000 for wages, and $5000 for materials. Neha’s profit is:

A) $1500

B) $2000

C) $2500C) $2500

D) $3000


The most important difference between command economies and market economies is______.

A) access to human rights

B) who controls the factors of production

C) the government in power

D) freedom of the press


The most important difference between command economies and market economies is______.

A) access to human rights

B) who controls the factors of productionB) who controls the factors of production

C) the government in power

D) freedom of the press


Karl Marx envisioned a system reflected by the statement, “from each according to their ability, to each according to their need.” This statement implies that:

A) Rewards should be allocated based on the value of contributions to society.B) All citizens are equal, and should be rewarded equally.C) Everyone should do their best to contribute, and in exchange society will address their needs.D) To be truly equal, those with greater need must

receive more.


Karl Marx envisioned a system reflected by the statement, “from each according to their ability, to each according to their need.” This statement implies that:

A) Rewards should be allocated based on the value of contributions to society.

B) All citizens are equal, and should be rewarded equally.C) Everyone should do their best to contribute,C) Everyone should do their best to contribute,

and in exchange society will address their needs.and in exchange society will address their needs.

D) To be truly equal, those with greater need must receive more.


When Henry Ford adopted the assembly line to mass produce the Model-T in 1913, he decided to pay his workers a relatively high wage because he believed that workers should be able to afford to buy what they make. This is consistent with the idea of _______________.

A) communism

B) input and output markets

C) socialism

D) privatization


When Henry Ford adopted the assembly line to mass produce the Model-T in 1913, he decided to pay his workers a relatively high wage because he believed that workers should be able to afford to buy what they make. This is consistent with the idea of _______________.

A) communism

B) input and output marketsB) input and output markets

C) socialism

D) privatization


The political basis for the free market economy is called ____________ which allows private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive.

A) Marxism B) Capitalism C) Consumerism D) Socialism


The political basis for the free market economy is called ____________ which allows private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive.

A) Marxism B) Capitalism B) Capitalism C) Consumerism D) Socialism


Socialism is an example of a type of __________ economy.

A) Capitalist B) Command C) Free-Market D) Communist


Socialism is an example of a type of __________ economy.

A) Capitalist B) CommandB) Command C) Free-Market D) Communist


A ____________ is a person hired by a company or industry to represent that company’s interests with government officials.

A) lobbyist B) advocate C) socialist D) venture capitalist


A ____________ is a person hired by a company or industry to represent that company’s interests with government officials.

A) lobbyistA) lobbyist B) advocate C) socialist D) venture capitalist


____________ revenue taxes (e.g., sales tax) are levied at the same rate regardless of a person’s income. They cause poorer people to pay a higher percentage of their income for these taxes than rich people pay. A) Regressive B) Progressive C) Restricted D) Protective


____________ revenue taxes (e.g., sales tax) are levied at the same rate regardless of a person’s income. They cause poorer people to pay a higher percentage of their income for these taxes than rich people pay. A) RegressiveA) Regressive B) Progressive C) Restricted D) Protective


A typical demand curve illustrates that:

A) As people earn more income, they buy more of a good.

B) As supply increases, the amount that a consumer wants will tend to decrease.

C) People will always buy more than they really want as a result of a low price.

D) People tend to buy more of a good when its price decreases.


A typical demand curve illustrates that:

A) As people earn more income, they buy more of a good. B) As supply increases, the amount that a consumer wants will tend to decrease. C) People will always buy more than they really want as a result of a low price. D) D) People tend to buy more of a good when People tend to buy more of a good when

its price decreases.its price decreases.


A scenario in which supply exceeds demand will lead to _______________.

A) surplus B) equilibrium C) deficit D) deflation


A scenario in which supply exceeds demand will lead to _______________.

A) A) surplussurplus B) equilibrium C) deficit D) deflation


If U2 is playing to a sold out concert this Friday night but tickets are still in high demand, concert-goers are likely to buy tickets from ‘scalpers’ at prices considerably higher than the original price. This situation can be described as a: A) shortage; in which quantity demanded exceeds

quantity supplied.B) surplus; in which quantity demanded exceeds quantity supplied.C) shortage; in which quantity supplied exceeds quantity demanded.D) surplus; in which quantity supplied exceeds quantity

demanded.


If U2 is playing to a sold out concert this Friday night but tickets are still in high demand, concert-goers are likely to buy tickets from ‘scalpers’ at prices considerably higher than the original price. This situation can be described as a: A)A) shortage; in which quantity demanded exceeds shortage; in which quantity demanded exceeds

quantity supplied.quantity supplied.B) surplus; in which quantity demanded exceeds quantity supplied.C) shortage; in which quantity supplied exceeds quantity

demanded.D) surplus; in which quantity supplied exceeds quantity

demanded.


In a private enterprise system, firms decide where to acquire materials, what products to produce, and what price to charge customers. Which two elements of private enterprise have the greatest impact on these decisions?

A) private property and freedom of choice

B) freedom of choice and competition

C) freedom of choice and profits

D) private property and competition


In a private enterprise system, firms decide where to acquire materials, what products to produce, and what price to charge customers. Which two elements of private enterprise have the greatest impact on these decisions?

A) private property and freedom of choice

B) freedom of choice and competition

C) freedom of choice and profits

D) private property and competition


The markets for laundry detergents, soft drinks and cars are all dominated by just a few producers. In terms of competition these markets are described by the term:

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


The markets for laundry detergents, soft drinks and cars are all dominated by just a few producers. In terms of competition these markets are described by the term:

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


The presence of competition in free markets:

A) is undesirable because it results in unnecessary redundant expenses.

B) often results in better quality and lower prices for consumers.

C) is rarely experienced since competition is forced

out by monopolies.

D) is undesirable, because large firms are always

more cost efficient than smaller ones.


The presence of competition in free markets:

A) is undesirable because it results in unnecessary redundant expenses.

B) often results in better quality and lower B) often results in better quality and lower pricesprices

for for consumers.consumers.

C) is rarely experienced since competition is forced out by monopolies.

D) is undesirable, because large firms are always more cost efficient than smaller ones.

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The Canadian Business System CHAPTER 1. Copyright © 2015 Pearson Canada Inc. Business Essentials, 7Ce 1-2 Which of the following organizations represents