Chapter 3 Flashcards
A new government comes into power in Canada promising to reduce the number of laws affecting business activity. In other words, this new government is in favour of ________.
deregulation
While visiting a farmer’s market in a major city in Canada, you may find many vendors selling identical apples (possibly from the same town or even the same orchard). How would you describe this form of competition?
Perfect competition
Mona was was hired by an oil company in Alberta to represent their vital interests with government officials. Mona would be characterized as a ________.
lobbyist
The government of Canada imposes many different types of taxes. Which of the following is the best example of a regressive revenue tax?
Sales tax (GST, HST)
What is the law of demand?
The principle that buyers will purchase more of a product as price drops.
What is privatization?
The transfer of activities from the government to the private sector.
What is the government’s role as a regulator?
Federal and provincial governments in Canada control and legislate many aspects of business activity through administrative boards, tribunals, and commissions.
_________ is a planned economic system in which the government owns and operates only selected major sources of production.
Socialism
What situations describes the market price?
When the quantity of goods demanded matches the quantity of goods supplied
What is the situation when the quantity of goods demanded matches the quantity of goods supplied?
Market price
________ is the difference between a business’s revenues and its expenses
Profit
Most countries in the world would be characterized as___________.
mixed market economies
What is shown on a supply-curve graph?
How much of a product will be for sale at different prices
In a ________, business-to-consumer (B2C) and business-to-business (B2B) exchanges take place without much government involvement.
market economy
The government controls the factors of production in Country X and makes the major production decisions in the economy. This is an example of a ________.
command economy
The key difference between economic systems is the way in which they manage labour, capital, entrepreneurs, natural resources, and information. Collectively these basic resources are known as the _________.
factors of production
What is socialism?
A system in which the government owns and operates only selected major sources of production and private ownership of smaller businesses is permitted
A(n) ___________ is an organization dedicated to promoting the interests and assisting the members of a particular industry.
trade association
What is the Competition Act?
Laws prohibiting a variety of business practices that lessen competition.
What is the input market?
Firms buy resources that they need in the production of goods and services.
The retail gas station industry in Canada is dominated by a handful of powerful sellers. This is an example of a(n) _________.
oligopoly
In some industries, domestic production quotas are established for commodities such as dairy products, maple syrup, eggs, chickens, and turkeys. Producers are not allowed to produce more than the quota they have been granted. This is known as ________.
supply management
What is capitalism?
An economic system in which markets decide what, when, and for whom to produce.
Labour unions and government agencies are good examples of ________.
not-for-profit organizations
To finance a new business and sustain that business throughout its life, companies need_________.
Capital
What is a monopoly?
A market or industry in which there is only one producer that can singularly control the prices of its products
What is communism?
A political system in which the government owns and operates all factors of production
A business is an organization that seeks to earn \_\_\_\_\_\_ by providing \_\_\_\_\_\_. A. revenue; goods, services, and ideas B. profit; goods and services C. revenue; sales D. profit; revenue
profit; goods and services
The way in which a nation allocates its resources among its citizens is determined by its \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. A. economic system B. factors of production C. fiscal policy D. social policy
economic system
The Canadian Radio-television and Telecommunications Commission is a \_\_\_\_\_\_. A. federal department B. type of law court C. provincial corporation D. regulatory agency E. Crown corporation
regulatory agency
The Food and Drug Act is an example of a piece of legislation that \_\_\_\_\_\_. A. protects consumers B. protects businesses C. promotes competition D. protects the environment E. achieves social goals
protects consumers
\_\_\_\_\_\_ is a mechanism for exchange between buyers and sellers. A. A market B. An output market C. A mixed economy D. Capitalism E. An input market
A market
An economic system characterized by private property rights, freedom of choice, profits, and competition is best described as \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. A. open economy B. mixed economy C. socialism D. private enterprise E. communism
private enterprise
Canadian agriculture provides a good example of an industry in which there exists \_\_\_\_\_\_\_\_. A. perfect competition B. a monopoly C. an oligopoly D. a natural monopoly E. monopolistic competition
perfect competition
Market equilibrium is determined by the _________.
A.
intersection of the demand curve and the horizontal (quantity) axis
B.
demand curve alone
C.
supply curve alone
D.
intersection of the supply curve and the vertical (price) axis
E.
intersection of the demand curve and the supply curve
intersection of the demand curve and the supply curve
To produce cars and trucks, General Motors had to manage the factors of production. Predicting consumer demand and adjusting production is an example of \_\_\_\_\_. A. labour B. capital C. physical resources D. information resources
information resources
The term \_\_\_\_\_\_ refers to the willingness of buyers to purchase a good or service. A. demand B. surplus C. shortage D. supply E. equilibrium
demand
