Chapter 7 MCQ Flashcards
What type of economic system does Canada have
Capitalist
Communism
Mixed
Socialism
Industrial
Mixed
The rise in the price of good and services over time is referred to as
Gross domestic product
Gross national product
Productivity
Balance of trade
Inflation
Inflation
Monopolistic Competition consists of:
A large number of companies competing with one company
A large number of companies competing with each other with some product differentiation
Only one company producing a particular product or service in a given market
A few companies dominating the industry
None of the above
A large number of companies competing with each other with some product differentiation
Unemployment among new university graduates is an example of which type of unemployment?
Undocumented
Seasonal
Frictional
Structural
Frictional
Which type of economic system has high levels of government involvement and control in the economy, permits privately owned businesses, and has a high level of taxation to pay for the high level of services?
Socialism
Communism
Mixed Economy
Capitalist
Socialism
In a Market Economy:
Individuals can own business and choose which products and services to produce and provide
The consumer determines which products will be produced and sold
The government decides which goods and services are produced and in what quantity
None of the above
Individuals can own business and choose which products and services to produce and provide
The Contraction Phase of the business cycle is characterized by:
An extreme recession, high unemployment, and high levels of personal and commercial bankruptcies.
The end of an Expansionary Phase
Falling profits
None of the above
Falling profits
Which statement is true about full employment?
It exists when there is no seasonal, structural or cyclical unemployment.
Will never be achieved if frictional unemployment exists.
It will only happen when everyone has a job.
It will only result if we transition towards a knowledge based economy.
All statements are incorrect.
All statements are incorrect.
Perfect competition exists when:
Competition is fair
The market sets the price
Everyone is free to compete
There are many products and services in the market
The market sets the price
Which of the following is NOT a factor of production?
Innovation
Natural Resources
Knowledge
Entrepreneur
Innovation
