Chapter 1

Question 1

In a Canadian market economy, who determines the price and quantity of goods and services?
A) The government
B) The consumers and businesses through supply and demand
C) International markets
D) Trade unions

Answer 1

C

Question 2

What is the primary function of Canadian businesses?
A) To provide employment
B) To serve the community
C) To maximize profits
D) To reduce environmental impact

Answer 2

C

Question 3

Which type of competition exists when there are many sellers in a market and no single buyer or seller can dictate prices?
A) Monopoly
B) Oligopoly
C) Monopolistic competition
D) Perfect competition

Answer 3

D

Question 4

The concept of ‘private enterprise’ includes all of the following except:
A) Government ownership of production
B) Individual initiative
C) Profit as a motive
D) Private property rights

Answer 4

A

Question 5

How does government influence businesses in Canada?
A) By setting comprehensive economic policies
B) By controlling all business activities
C) By participating as a competitor
D) None of the above

Answer 5

A

Question 6

Which economic system is based on the private ownership and the profit motive?
A) Command economy
B) Socialist economy
C) Market economy
D) Mixed economy

Answer 6

C

Question 7

In a market economy, what determines the price of goods?
A) The government
B) The producers
C) Supply and demand
D) External trade agreements

Answer 7

C

Question 8

What is meant by ‘degrees of competition’ in the context of the Canadian economic system?
A) The level of government intervention in business
B) The intensity of rivalry among businesses
C) The regulatory framework governing fair trade
D) The rate of new business startups

Answer 8

B

Question 9

Which type of competition describes a market with many buyers and sellers where no single buyer or seller can influence the market?
A) Monopoly
B) Monopolistic competition
C) Oligopoly
D) Perfect competition

Answer 9

D

Question 10

The interaction between business and government in Canada is exemplified by:
A) Government ownership of businesses
B) Lobbying by businesses
C) Price setting by the government
D) Total government control over production

Answer 10

B

Question 11

Private enterprise in Canada involves:
A) Government-funded businesses
B) Individual and corporate ownership of businesses
C) Non-profit organizations primarily
D) Exclusively government-operated entities

Answer 11

B

Question 12

What does the term ‘factors of production’ refer to?
A) Government economic policies
B) Resources used to produce goods and services
C) Corporate business strategies
D) Consumer behavior models

Answer 12

B

Question 13

Demand and supply affect resource distribution in Canada by:
A) Government allocation based on social need
B) Distributing resources equally across provinces
C) Determining prices and quantities in the market
D) Central planning by federal authorities

Answer 13

C

Question 14

The main goals of Canadian businesses typically include:
A) Providing maximum employment
B) Maintaining sustainability
C) Maximizing shareholder wealth
D) Enhancing public services

Answer 14

C

Question 15

Which of the following best describes the primary goal of Canadian businesses?
A) Maximizing employee satisfaction
B) Minimizing environmental impact
C) Maximizing shareholder wealth
D) Ensuring customer loyalty

Answer 15

C

Question 16

In Canada, what role does government regulation play in business?
A) Ensures businesses can operate without any government intervention
B) Serves only to provide financial subsidies to technology firms
C) Controls all supply and demand decisions within businesses
D) Sets the legal framework within which businesses must operate

Answer 16

D

Question 17

Demand and supply in the Canadian market economy are influenced by:
A) International trade agreements only
B) Consumer preferences and resource availability
C) Decisions made by the Canadian Chamber of Commerce
D) Fixed prices established annually by the federal government

Answer 17

B

Question 18

The Canadian economic system can be classified as which of the following?
A) Pure command economy
B) Mixed economy leaning towards market-based
C) Strictly market economy
D) Mixed economy leaning towards command-based

Answer 18

B

Question 19

Private enterprise in Canada is characterized by:
A) Limited competition due to high government interference
B) High levels of corporate taxes and minimal competition
C) Freedom to enter and exit markets, and competition among businesses
D) Businesses operated solely by private individuals without corporate structures

Answer 19

C

Question 20

Which degree of competition most accurately represents most Canadian markets?
A) Monopolistic competition
B) Oligopoly
C) Perfect competition
D) Monopoly

Answer 20

A

Question 21

What is the impact of international trade on Canadian business?
A) Negligible impact due to Canada’s self-sufficiency
B) Major impact due to dependency on U.S. markets
C) No impact, as Canada does not engage in international trade
D) Moderate impact influenced by trade with BRICS nations

Answer 21

B

Question 22

The Canadian government influences businesses through:
A) Direct control over production and pricing
B) Tariffs and trade barriers only
C) Incentives, regulations, and taxes
D) Controlling the number of businesses that can operate

Answer 22

C

Question 23

Resource distribution in Canada’s market economy is primarily determined by:
A) The level of resources available in government reserves
B) The decisions made by major corporations’ CEOs
C) Market forces of demand and supply
D) Predictions made by economic analysts

Answer 23

C

Question 24

Which statement best describes the interaction between Canadian businesses and the global economy?
A) Canadian businesses are isolated from the global economy
B) Canadian businesses actively engage in and are affected by the global economy
C) Canadian businesses follow a policy of economic isolationism
D) The global economy has no real impact on Canadian businesses

Answer 24

B