Intro. Business Chapter 2

__________ exists when the entire supply of a good is controlled by a single seller. A. Perfect competition B. Oligopoly C. Pure Capitalism D. A monopoly

A monopoly

Inelastic demand results when movement in price: A. results in significant changes in supply B. does not result in significant changes in supply C. results in significant changes in demand D. does not result in significant changes in demand E. results in equal movement in demand

does not results in significance change in demand

Increased unemployment can reduce consumer demand for goods and services, leading to: A. Economic contraction B. Inflation C. Deflation D. A budget deficit

economic contraction

When prices are free to adjust over time, the market price of a good tends to: A. rise above the equilibrium price in the long run. B. equal the equilibrium price in the long run. C. fall below the equilibrium price in the long run. D. have no specific relationship to the equilibrium price.

equal the equilibrium price in the long run

In pure economic terms, this refers to the point where the quantity supplied equals the quantity demanded, with the price point set. A. market freedom B. elastic demand C. market point D. Equilibrium E. supply point

equilibrium

The Canadian economic system can be described as a: A. mixed economy. B. capitalist economy. C. socialist economy. D. communist economy.

mixed economy

In most large cities there are a large number of bakeries. These bakeries produce similar, but not identical, products. Some bakeries claim to have the best cheesecakes in town, while others brag about their cookies or specialty breads. The bakery market in a large city is an example of: A. monopolistic competition. B. perfect competition. C. an oligopoly. D. a monopoly.

monopolistic competition

Approximately 53% of the FDI flowing into Canada comes from the USA, however almost what percent of the INCREASES in FDI come from non-U.S. sources? A. 20% B. 100% C. 80% D. 10% E. 50%

100%

Approximately what percentage of the FDI flowing into Canada comes from the USA? A. 45% B. 53% C. 80% D. 50% E. 100%

53%

An oligopoly is a market that is characterized by: A. one firm that totally dominates the supply of the product. B. a large number of small firms all producing very similar products. C. a few large sellers who dominate the market supply. D. several small firms that compete primarily by differentiating their products.

A few large sellers who dominate the mark supply

Of the following, which factor is NOT included in the total value of GDP: A. goods and services which are produced and purchased domestically for consumption B. government spending business C. investments within the economy D. business investments in other countries E. goods produced for export purposes

Business investments in other countries

Canada has a strong natural resource base results in our having a ___________ when it comes to the commodities and energy market sectors. A. national competitive advantage B. comparative improvement C. competitive advantage D. national advantage E. comparative advantage

Comparative advantages

Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people? A. Culture B. Ethnocentricity C. Institutional society D. Social myopia

Culture

Managers need to understand what the general indicators are saying about the _______ economy and about the ________ relationship between the key variables governing our mixed economic system A. past; current B. future; future C. current; current D. past; future E. current; past

Current: current

A(n) _____________ curve shows the relationship between the price of a good and the quantity of that good people are willing and able to buy in a given time period. A. demand B. supply C. utility D. Laffer

Demand

Which of the following is NOT one of the prominent trends which Canadian managers will need to assess in order to plan appropriately for their business operations? A. Currency Exchange Rate Impact B. Sustainability and Green Initiatives C. Energy Prices D. Geographic Clustering E. Small Business Emphasis

Energy prices

Economies move and grow as a result of activities of the following: A. Consumers B. Businesses C. Government D. large businesses E. Everyone

Everyone

Which of the following represents the value of one nation's currency relative to the currencies of another country? A. Euro rate B. Currency rate C. Exchange rate D. Standard of living

Exchange rate

A typical supply curve shows that an increase in the price of a good will cause the quantity supplied to: A. decrease. B. increase. C. remain constant. D. fluctuate randomly around its equilibrium value.

Increase

A continuing rise in prices over a period of time refers to A. inflation. B. economic expansion. C. a recession. D. economic contraction. E. stagflation.

Inflation

Which of the following is NOT one of the prominent trends which Canadian managers will need to assess in order to plan appropriately for their business operations? A. Currency Exchange Rate Impact B. Sustainability and Green Initiatives C. Inflation D. Geographic Clustering E. Large Business Emphasis

Large business emphasis

Daily changes are influenced by both controllable and non-controllable factors. In many cases, these changes can be the result of broader _________ forces beyond a specific industry. A. micro-economic B. macro-economic C. Business D. National E. International

Macro-economic

___________ exists when a large number of firms produce goods that are similar but are perceived by buyers as being different. A. Perfect competition B. Monopolistic competition C. Oligopoly D. A monopoly

Monopolistic competition

Bigbux is a major producer of whatsits, but it faces competition in the whatsit market from three other major producers. Together, Bigbux and its three large rivals control almost the entire supply of whatsits. The type of market Bigbux is in is called: A. oligopoly. B. duopoly. C. monopolistic competition. D. quasi-monopoly.

Oligopoly

As managers, we must not only be in tune with the general directions which are occurring, but also with the ______________ which will develop as a result of such increased economic activity and interdependency. A. Problems B. Threats C. Diseases D. opportunities and threats E. Prospects

Opportunities and threats

Managers assess the macro level, the political, social, technological, environmental, and legal changes in their environment. This analysis is commonly referred to as a ________ analysis A. Competitive B. Five Forces C. Environmental D. PESTEL E. ecological

PESTEL

Managers will also assess, at the macro level, the political, social, technological, environmental, and legal changes which are occurring. This analysis is commonly referred to as a ________ analysis A. PESTEL B. Five Forces C. Environmental D. Micro-economic E. Ecological

PESTEL

A typical demand curve shows that: A. as people earn more income, they buy more of a good. B. as supply increases, the amount purchased decreases. C. people tend to buy more of a good than they really want. D. people tend to buy more of a good when its price decreases.

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

Jane's Garden Center exists in a market where there are many sellers & no seller is large enough to dictate the price of a product. Under what degree of competition does Jane's company compete? A. Monopoly B. Oligopoly C. Monopolistic competition D. Perfect competition

Perfect competition

__________ is characterized by a large number of firms selling products that appear to be identical. A. Oligopoly B. Monopolistic competition C. Perfect competition D. Microeconomic competition

Perfect competition

Inflation robs an economy of true growth and __________ negatively impacts the confidence levels of consumers and business operators alike. A. Physically B. Psychologically C. Demographically D. Geographically E. Mentally

Psychologogically

In recent years, productivity in the manufacturing sector of the Canadian economy has been: A. rising. B. relatively stable. C. falling slowly. D. falling very rapidly.

Rising

Economies move and grow as a result of activities of everyone in the following areas: A. Expenditures B. Savings C. Investments D. Credit E. all of the above

all of the above

Productivity and its resulting economic activity is predicated on the following fundamental factor: A. Expenditures B. Savings C. Investments D. Credit E. all of the above

all of the above

Economic expansion occurs when A. fewer goods and services are produced than consumers demand. B. an economy is growing and people are spending more money. C. a nation's standard of living drops quickly. D. employment levels decline over time. E. prices begin to rise and incomes begin to fall.

an economy is growing and people are spending more money

The markets for laundry detergents, soft drinks, and automobiles all are dominated by just a few sellers. Economists would classify these markets as examples of: A. monopolistic competition. B. perfect competition. C. an oligopoly. D. a monopoly.

an oligopoly

The ability of a country to produce or supply goods or services at a lower cost than other countries or to possess resources or unique services that are unavailable elsewhere is a: A. national competitive advantage B. comparative advantage C. competitive advantage D. national advantage E. absolute advantage

comparative advantage

When the supply curve and demand curve for a particular good are on a single graph, the point at which the two curves intersect identifies the: A. total profit earned by producers. B. total amount of labour that will be employed in that market. C. amount of time it takes to bring together the buyers and sellers of the good. D. equilibrium price of the good.

equilibrium price of the good

The following contributing factor has NOT helped Canada be seen as a safe and lucrative place to do business: A. Possess a strong, fair, and equitable legal system B. Existence of corruption C. Possession of a strong natural resource base D. National and provincial debt levels are within acceptable limits E. Banking system is considered one of the most efficient and techno-savvy in the world

existence of corruption

One of the most-often-used business tools to assess the market they are operating within is a business model created by Michael Porter of the Harvard Business School called: A. Industry Attractiveness Model B. Five Forces Model C. Competition Model D. Macro-Economic Model E. Industry Competitiveness Model

five forces model

Kwality Computers utilizes the same promotional message about their product worldwide. This is an example of: A. a letter of credit arrangement. B. global marketing. C. multinational sensitivity. D. countertrading efficiency.

global marketing

Selling the same product in essentially the same way worldwide is known as: A. socio-cultural based marketing. B. universal sales standards. C. single-phase marketing. D. global marketing.

global marketing

Suppliers need to think about the cost of production versus the revenue which will be received from selling their product, and the change in profit which will be realized at different points on the schedule. This is called the: A. Demand Curve B. Supply Line C. Law of supply D. Law of demand E. Demand Schedule

law of supply

Today, the economic systems of most nations could most accurately be classified as: A. pure capitalism. B. pure socialism. C. command economies. D. mixed economies.

mixed economies

Susan Gilles wants to invest in a Tim Horton's franchise but opts not to once she finds out just how much it costs to buy a franchise. She decides to start her own independent coffee shop. She understands the need to differentiate her business from all the other coffee shops, given the type of competition that exists in this industry, which is, A. an oligopoly. B. perfect competition. C. monopolistic competition. D. a monopoly.

monopolistic competition

Which of the following is NOT one of the contributing factors impacting Canada's economic development A. National and provincial debt levels are within acceptable limits B. Required business and economic management systems are in place C. Political system is unstable D. Economy contains the essential factors of production E. Sufficient levels of investment

political system is unstable

Why is it important for managers to understand trends which are occurring within the economic market? A. help managers have confidence in outlaying investments B. design business strategy C. pose opportunities and challenges to the livelihood of businesses D. develop products that customers will want E. help managers to predict future demand

pose opportunities and challenges to the livelihood of businesses

A core fundamental of an open, economic environment, the Law of Supply and Demand, refers to the ability of the market, independent of external influences, to determine the: A. amount of product or service that will be bought or sold B. price for which a product or service will be bought and sold C. amount of product or service that will be produced D. speed at which a product or service will be bought or sold E. relative stability of demand for a product or service

price for which a product or service will be bought or sold

A typical supply curve shows a relationship between the: A. amount of labour a firm hires and the amount of output it can produce. B. amount of time required to produce a good and the relevant production costs. C. price of a good and the quantity sellers would be willing to offer for sale. D. amount of a good a firm produces and the total profit it earns.

price of a good and the quantity sellers would be willing to offer for sale

if a shortage exists for a good in a free-market economy, the: A. price of the good will rise. B. price of the good will fall. C. government will order suppliers to increase the production of that good. D. government must establish a rationing system to make sure that the good is fairly distributed.

price of the good will rise

Paula, a Canadian businessperson who closely follows international business conditions, recently read a newspaper article predicting that the value of the dollar will soon fall. If this article is correct, Paula should expect: A. prices of imported goods to rise, and prices of Canadian goods sold overseas to rise as well. B. prices of imported goods to rise, but prices of Canadian goods sold overseas to fall. C. prices of imported goods to fall, and prices of Canadian goods sold overseas to fall as well. D. prices of imported goods to fall, but prices of Canadian goods sold overseas to rise.

prices of imported goods to rise but prices of canadian goods sold overseas to fall

Key economic drivers vary from country to country, for Canada, what is NOT considered to be a key driver: A. production of goods and services for purpose of exporting B. energy-producing sector C. technology sector D. natural resource sector E. consumer spending

production of goods and services for purpose of exporting

A controlled system is characterized by: A. reliance on the forces of supply and demand to determine what is produced. B. reliance on the government to determine what is produced and who gets the output. C. an extremely rapid rate of economic growth. D. freedom of choice and freedom of competition.

reliance on the government to determine what is produced and who gets the output

Elastic demand results when movement in price: A. results in significant changes in supply B. does not result in significant changes in supply C. results in significant changes in demand D. does not result in significant changes in demand E. results in equal movement in demand

results in significant changes in demand

Hennessy Hardware, a Canadian retailer, buys much of its inventory from Asian countries. Hennessy Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from which Hennessy imports. A. rose B. fell C. remained constant D. floated unpredictably

rose

Economic contraction occurs when A. Spending increases B. Spending declines C. Jobs increase D. Inflation decreases

spending declines

Economic contraction occurs when A. Spending increases B. Spending declines C. Jobs increase D. Inflation decreases

spending's decline

The quantity of a good or service that manufacturers or owners are willing to sell at different prices during a specific time period is known as the: A. supply of that product. B. demand for that product. C. elasticity of that product. D. utility of that product.

supply of the product

Economies growth depends upon: A. the development stage of the economy B. its key GDP drivers C. government spending D. total market value of the goods and services a nation produces E. the development stage of the economy and its key GDP drivers

the development stage of the economy and its key GDP drivers

The danger with geographic clustering occurs when such distinctness occurs at the broader macro level, resulting in what? A. The cost of visiting Canada by residents of the U.S. is now more expensive than before B. The ability of governments to effectively control economic expansion or contraction C. The increased cost of developing new products and services D. The inability of governments to effectively control economic expansion or contraction E. The need to import skilled and well-educated workers due to a shortage domestically

the inability of governments to effectively control economic expansion or contraction

Canada's aging workforce is poised to impact the employment needs of Canada's energy sector, resulting in what? A. The cost of visiting Canada by residents of the U.S. is now more expensive than before B. The ability of governments to effectively control economic expansion or contraction C. The increased cost of developing new products and services D. The inability of governments to effectively control economic expansion or contraction E. The need to import skilled and well-educated workers due to a shortage domestically

the need to important skilled and well-educated workers due to a shortage domestically

The presence of competition in free markets: 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.

typically results in better quality and lower prices