Business A Changing World 5th Canadian Edition 58 Test Bank Multiple Choice Questions 37 Test True – False Questions Which of the following functions involves activities designed to provide goods and services that fulfill needs and wants of consumers? Accounting Engineering Finance Production Marketing Private property, profits, independent business decisions, and freedom of choice are rights associated with socialism free enterprise communism egalitarianism humanitarianism Which of the following is not a product? A Mac personal computer A veterinarian's treatment of a pet's injuries A lawyer's advice in a divorce case Profits earned by businesses A checkup by a doctor If a business is to be successful in the long run, it must treat its customers, employees, and community with social _ meetings responsibility agendas insight interests All of the following are examples of natural resources, except: forests human mental talent minerals nickel fisheries The function concerned with obtaining and managing money and using it effectively is called: management marketing finance production and operations personnel Which of the following questions are addressed by all economic systems? What goods and services should be produced? How much of each good and service should be produced? Who will produce the goods? How should the goods and services be distributed? All of the answers are correct The goal of business is to earn respect resources a profit responsibility independence The difference between pure capitalism and modified capitalism is that under pure capitalism there is less government regulation modified capitalism there is less government regulation pure capitalism there is more government regulation either form of capitalism, government regulation is equal none of the answers is correct Which of the following systems has the highest degree of competition? Communism Socialism Pure capitalism Modified capitalism Mixed economy Which of the following countries best depicts a communist economic system? Cuba Canada Russia Poland Hungary If an economist is analyzing the quantity of goods or services that businesses are willing to sell at different prices at specific times, then the focus is on competition pure competition demand supply equilibrium All the following are factors of production used to make goods and services except: natural resources human resources customers capital financial resources Most economic systems exist in a pure form exist in a mixed form are ineffective create revolutions give individuals freedom One of the best known Canadian marketing initiatives of all time is: The Air Miles Program Tim Hortons' "Roll up the Rim to Win" Petro-Points HBC's reward program President's Choice points In which economic system(s) are basic services provided by the central government? Communism and socialism Capitalism and socialism Communism and capitalism Socialism only Capitalism only When a business fails or does not make a profit, _ have the most to lose customers workers managers owners consumers Businesses differ from non-profit organizations in that a business's focus is on price goods profits 4 organization plans The group of people to whom management activities most apply is consumers owners bankers government regulators employees Communist societies appear to be efficient and equitable, at least in theory have a high standard of living seldom have consumer shortages have only one class of people not spend much on defense Under a capitalist system, goods and services provided are determined by all of the following except competition supply consumer demand market forces businesses owned by the government The functions of organizing, staffing, planning, and controlling are most closely associated with employees customers managers stockholders accountants Socialism allows only private ownership of business allows only government ownership of the factors of production has government ownership of basic industries is becoming more popular all of the answers are correct Resources may be services ideas machines human concepts Socialist economies praise their egalitarianism, which means income and social services are distributed to the elite only to the poor only equally unequally to the homeless Suppliers are generally willing to lower prices below costs 2 supply more at a higher price demand more at a higher price determine equilibrium price supply more at a lower price All of the following are true in a communist economy except the means of production are owned by the government the government chooses what will be produced the government decides how the goods will be produced supply is determined by central government planning consumers have a wide choice of goods and services Factors of production are: resources used to produce goods and services fixed resources taxes seldom in demand free Advertising, personal selling, coupons, and sweepstakes are forms of publicity promotion marketing research management activities the marketing mix When purchasing a product, the consumer is actually buying its anticipated benefits and the _ it brings satisfaction price costs productivity form 58 Free Test Bank for Business A Changing World 5th Canadian Edition by Ferrell Multiple Choice Questions - Page In the history of the Canadian economy, the period or stage following the Industrial Revolution was known for its emphasis on service technology manufacturing agriculture both manufacturing and agriculture All of the following are associated with the Industrial Revolution, except: factories railroads farm equipment computers machines Agricultural commodities are usually sold under which competitive environment? Monopoly Monopolistic competition Pure competition Oligopoly Pure capitalism As women entered the workforce in increasing numbers, Canadians began to pay others to jobs for them which made their lives easier This began the transformation of the Canadian economy into a: service economy sluggish economy financial economy agricultural economy industrial economy Supply and demand may be an efficient way to distribute resources, but it may not distribute resources equally among those who need them but it doesn't allow the poor to get rich although equilibrium price is determined by the government but it helps inefficient producers to succeed and it is always fair Using the supply and demand curves shown in the graph that follows, what is the equilibrium price for soft drinks? 35 cents 45 cents 50 cents 55 cents 75 cents Countries measure the state of their economies to determine whether they are expanding or contracting regulate wages and employment let other nations know the state of their economic health avoid taking corrective action control government spending Economic contraction leads to: spending increases recession higher employment inflation deflation If Chrysler raises the prices of its new models of pickup trucks by percent and General Motors and Ford follow by raising prices by a similar amount, then this is evidence of a monopoly an oligopoly pure competition monopolistic competition supply and demand When businesses can promote different features of their products and consumers are willing to pay more for products containing the features they desire, the competitive environment is probably pure competition monopolistic competition oligopoly monopoly pure capitalism Competition fosters efficiency because the government regulates prices producers have to offer the best products at reasonable prices supply depresses prices all buyers have perfect knowledge businesses can set whatever prices they want Time-pressed Canadians are increasingly: paying others to their own home tasks relaxing sleeping reading reducing the time they spend at work Inflation in Canada is typically measured by: Gross Domestic Product The Consumer Price Index Per capita income Worker productivity 5 The Trade Balance The early economy of Canada was marked by settlers who operated a society primarily based on manufacturing technology sweatshops information agriculture A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a(n): stagnant income budget deficit economic expansion balance of trade economic contraction Economic contraction occurs when more goods and services are demanded by consumers spending declines and businesses cut back on production a nation's standard of living remains stable over time employment levels increase over time prices begin to rise and incomes rise accordingly Much of the new debt accrued in Canada between 2008 and 2013 can be attributed to: stagnant income Canada's Economic Action Plan 3 economic expansion balance of trade poor monetary management Technological trends have gradually changed Canada to a(n) _ economy focused on making life easier for busy consumers manufacturing service agriculture technology marketing The entrepreneur has been primarily associated with a willingness to stay conventional follow others take risks be repetitive be conservative Economic expansion occurs when fewer goods and services are produced than consumers demand an economy is growing and people are spending more money a nation's standard of living drops quickly employment levels decline over time prices begin to rise and incomes begin to fall Monopolies that function in a capitalistic economy are likely to have prices determined by law of supply 2 law of demand interaction of supply and demand equilibrium interaction government regulation Which competitive environment best describes the market for wheat, corn, and cotton? Monopoly Monopolistic competition Pure competition Oligopoly Pure capitalism Increased unemployment can reduce consumer demand for goods and services, leading to economic contraction inflation deflation a budget deficit higher employment levels All of the following are associated with the manufacturing economy, except: buying on a time-payment plan marketing advertising cable television marketing research A continuing rise in prices over a period of time refers to inflation economic expansion a recession economic contraction stagflation When Walmart has a sale on digital cameras, consumers won't demand more digital cameras than normal the store won't supply more digital cameras than it normally does consumers will demand more digital cameras the manufacturer will halt production of digital cameras consumers will demand fewer digital cameras Which competitive environment best describes the market for Canadian air travel? Monopoly Monopolistic competition Oligopoly Pure competition Pure capitalism When Apple introduced the iPod portable digital music player, the price of and demand for digital music players was high As a result, other suppliers introduced digital music players to meet the demand consumers stopped buying digital music players manufacturers stopped producing digital music players competition was not allowed to enter the market 5 the equilibrium price met supply 37 Free Test Bank for Business A Changing World 5th Canadian Edition by Ferrell True - False Questions The focus of all marketing activities is customer satisfaction True False During a recession, unemployment is unusually low True False The Canadian Pacific Railway linked Canada from north to south True False A severe recession may turn into a depression True False Monopolistic competition exists when there is only one producer of a product in a given market True False Since 1997, it has been common policy for the government of Canada to run large budget deficits True False Managers coordinate resources to achieve organizational objectives True False Businesses have the right to keep and use their profits as they choose, without limitations True False Finance is concerned with obtaining money and using it effectively True False Entrepreneurs risk their wealth, time, and effort to develop for profit an innovative product or way of doing something True False A central issue of economics is how to fulfill consumers' unlimited demand for goods and services in a world with limited resources True False A product's equilibrium price is constantly changing in response to changes in economic conditions, availability of resources, and degree of competition True False When a nation collects more from taxes than it spends, it has a budget deficit True False Advertising first made consumers aware of differences in products and prices in the marketing economy True False Free-market capitalism and laissez-faire capitalism are essentially the same thing True False Human resources refer only to the mental abilities of people used to produce goods and services; it is synonymous with knowledge True False Non-profit organizations such as the Canadian Cancer Society not engage in management, marketing, or finance activities True False Entrepreneurship is essential to a free-enterprise system True False An oligopoly exists when there are many small businesses selling one standardized product True False Natural resources include land, minerals, water, and other gifts of nature which are not made by humans True False Society demands ethical and socially responsible business behaviour towards customers and investors only There seems to be less of a concern for other stakeholder groups including government regulators and the environment True False In a free-market system, the government regulates business True False The goal of business activities is to earn a profit True False Economic expansion occurs when an economy is growing and people are spending more money True False Capitalism is an economic system in which the government owns and operates basic industries while individuals own most other businesses True False The equilibrium price is represented by the point where a product's supply and demand curves intersect True False Inflation is a condition characterized by falling prices True False Profit is what it costs to make and sell a product True False Gross domestic product is the sum of all goods and services produced in a country during a year True False Studying business will help you develop skills to employ in a future career, if that career takes place in the country where you studied business topics True False Demand is the quantity of goods and services that consumers are willing to buy at different prices at a specific time True False Owners have little responsibility to provide funds for the operation of the business True False Industrialization mostly occurred in Central Canada True False Products have tangible attributes only True False Most socialist nations are democratic True False Owners always manage their businesses themselves True False The standard of living rises because people have less money to spend True False ... debt accrued in Canada between 2008 and 2013 can be attributed to: stagnant income Canada's Economic Action Plan 3 economic expansion balance of trade poor monetary management Technological trends... 37 Free Test Bank for Business A Changing World 5th Canadian Edition by Ferrell True - False Questions The focus of all marketing activities is customer satisfaction True False During a recession,... Free Test Bank for Business A Changing World 5th Canadian Edition by Ferrell Multiple Choice Questions - Page In the history of the Canadian economy, the period or stage following the Industrial