Question 1

Which of the following statements provides the most accurate comparison of socialism and communism?

Accepted Answer

A)  Under socialism the government owns most businesses,while under communism the church owns most businesses.
B)  Both socialism and communism want to achieve a more equal distribution of income and wealth,but under communism the government takes more control over people's lives.
C)  Socialism strives for an equal distribution of income but communism wants income to go primarily to those who own and operate private businesses.
D)  Communism believes that the government should always strive to balance its budget,while socialism accepts deficit spending as the price of achieving true equality.E) A) and C)
F) A) and B)

Question 2

Skeeden is a nation with an economic system that features free markets with private ownership of businesses.It still relies on those businesses to create most wealth.However,over time the government of Skeeden has developed some programs and policies designed to help the needy and reduce the level of income inequality.It pays for these programs by levying relatively high taxes on businesses and workers.These arrangements suggest that the economy of Skeeden is moving closer to the adoption of pure capitalism.

Accepted Answer

A) True 
 B)False

Question 3

Communism is an economic system where the state makes almost all economic decisions.

Accepted Answer

A) True 
 B)False

Question 4

Adam Smith felt that incentives to seek personal gain would insure the creation of wealth,but that the government must step in to make sure that this wealth was equitably distributed.

Accepted Answer

A) True 
 B)False

Question 5

A monopoly occurs when there is a single seller for a product or service.

Accepted Answer

A) True 
 B)False

Question 6

The rise and fall of the economy is referred to as the concept of:

Accepted Answer

A)  depression
B)  recession
C)  business cycles
D)  recoveryE) All of the above
F) None of the above C

Question 7

An important economic trend has been for free-market economies to move more toward socialism while command economies move more toward free markets.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would be a topic emphasized in a macroeconomics course?

Accepted Answer

A)  Factors that determine how fast a nation's economy is growing.
B)  How a firm decides the price it will charge for one of its products.
C)  How a consumer chooses which goods to buy.
D)  The determinants of the wage rate for a certain type of labour.E) A) and B)
F) A) and C)

Question 9

A major trend in the world today is that:

Accepted Answer

A)  free-market economies are moving more toward socialism and socialist economies are moving more toward capitalism.
B)  productivity in the service sector is increasing much more rapidly than productivity in agriculture and manufacturing.
C)  governments in socialist economies are increasing their use of social programs and relying on higher tax rates to finance these programs.
D)  governments in countries with capitalist economies are paying less attention to environmental concerns and issues involving social equality.E) B) and D)
F) C) and D)

Question 10

In socialist economies,the government owns some,if not most,basic businesses such as coal mines and utilities.

Accepted Answer

A) True 
 B)False  True

Question 11

Over the past decade,socialist economies have proven to be more successful at innovation and inventions than capitalist economies.

Accepted Answer

A) True 
 B)False  False

Question 12

Inflation refers to a general rise in the prices of goods and services over time.

Accepted Answer

A) True 
 B)False

Question 13

A __________ is a very severe recession that is usually accompanied by a decline in the average level of prices.

Accepted Answer

A)  stagflation
B)  retraction
C)  depression
D)  dissolutionE) All of the above
F) A) and B)

Question 14

The Canadian economy is a service economy.

Accepted Answer

A) True 
 B)False

Question 15

Depressions are usually accompanied by severe inflation.

Accepted Answer

A) True 
 B)False

Question 16

__________ is characterized by a large number of firms selling products that appear to be identical.

Accepted Answer

A)  Oligopoly
B)  Monopolistic competition
C)  Perfect competition
D)  Microeconomic competitionE) All of the above
F) A) and B)

Question 17

One of the greatest concerns associated with capitalism is that:

Accepted Answer

A)  it is not very successful at creating wealth.
B)  some businesspeople may let greed guide their behaviour.
C)  the amount of economic freedom enjoyed by consumers is very limited.
D)  producers are unlikely to supply the goods and services that consumers value the most.E) None of the above
F) A) and B)

Question 18

When describing the state of the Canadian economy,reporters and commentators often refer to figures for the nation's GDP,its unemployment rate,and the CPI.Explain what each of these terms means and why each measure is significant.

Accepted Answer

GDP stands for gross domestic product,wh...

Question 19

In free markets,the lack of government control and regulation means that businesses find it easy to take advantage of customers by offering poor quality products at high prices.

Accepted Answer

A) True 
 B)False

Question 20

When the market price of a good is below the equilibrium price:

Accepted Answer

A)  the quantity demanded will exceed the quantity supplied.
B)  the supply curve will be to the right of the demand curve.
C)  a surplus will exist in the market.
D)  the government will regulate the price of the good to ensure equilibrium is attained.E) All of the above
F) A) and B)

Exam 2: How Economic Issues Affect Business

Which of the following statements provides the most accurate comparison of socialism and communism?

Correct Answer
verified

Correct Answer
verified

Communism is an economic system where the state makes almost all economic decisions.

Correct Answer
verified

Adam Smith felt that incentives to seek personal gain would insure the creation of wealth,but that the government must step in to make sure that this wealth was equitably distributed.

Correct Answer
verified

A monopoly occurs when there is a single seller for a product or service.

Correct Answer
verified

The rise and fall of the economy is referred to as the concept of:

Correct Answer
verified
C

An important economic trend has been for free-market economies to move more toward socialism while command economies move more toward free markets.

Correct Answer
verified

Which of the following would be a topic emphasized in a macroeconomics course?

Correct Answer
verified

A major trend in the world today is that:

Correct Answer
verified

In socialist economies,the government owns some,if not most,basic businesses such as coal mines and utilities.

Correct Answer
verified
True

Over the past decade,socialist economies have proven to be more successful at innovation and inventions than capitalist economies.

Correct Answer
verified
False

Inflation refers to a general rise in the prices of goods and services over time.

Correct Answer
verified

A __________ is a very severe recession that is usually accompanied by a decline in the average level of prices.

Correct Answer
verified

The Canadian economy is a service economy.

Correct Answer
verified

Depressions are usually accompanied by severe inflation.

Correct Answer
verified

__________ is characterized by a large number of firms selling products that appear to be identical.

Correct Answer
verified

One of the greatest concerns associated with capitalism is that:

Correct Answer
verified

When describing the state of the Canadian economy,reporters and commentators often refer to figures for the nation's GDP,its unemployment rate,and the CPI.Explain what each of these terms means and why each measure is significant.

Correct Answer
verified
GDP stands for gross domestic product,wh...
View Answer

In free markets,the lack of government control and regulation means that businesses find it easy to take advantage of customers by offering poor quality products at high prices.

Correct Answer
verified

When the market price of a good is below the equilibrium price:

Correct Answer
verified

Exam 2: How Economic Issues Affect Business

Which of the following statements provides the most accurate comparison of socialism and communism?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Communism is an economic system where the state makes almost all economic decisions.

Correct AnswerverifiedShow Answer

Adam Smith felt that incentives to seek personal gain would insure the creation of wealth,but that the government must step in to make sure that this wealth was equitably distributed.

Correct AnswerverifiedShow Answer

A monopoly occurs when there is a single seller for a product or service.

Correct AnswerverifiedShow Answer

The rise and fall of the economy is referred to as the concept of:

Correct AnswerverifiedC

An important economic trend has been for free-market economies to move more toward socialism while command economies move more toward free markets.

Correct AnswerverifiedShow Answer

Which of the following would be a topic emphasized in a macroeconomics course?

Correct AnswerverifiedShow Answer

A major trend in the world today is that:

Correct AnswerverifiedShow Answer

In socialist economies,the government owns some,if not most,basic businesses such as coal mines and utilities.

Correct AnswerverifiedTrue

Over the past decade,socialist economies have proven to be more successful at innovation and inventions than capitalist economies.

Correct AnswerverifiedFalse

Inflation refers to a general rise in the prices of goods and services over time.

Correct AnswerverifiedShow Answer

A __________ is a very severe recession that is usually accompanied by a decline in the average level of prices.

Correct AnswerverifiedShow Answer

The Canadian economy is a service economy.

Correct AnswerverifiedShow Answer

Depressions are usually accompanied by severe inflation.

Correct AnswerverifiedShow Answer

__________ is characterized by a large number of firms selling products that appear to be identical.

Correct AnswerverifiedShow Answer

One of the greatest concerns associated with capitalism is that:

Correct AnswerverifiedShow Answer

When describing the state of the Canadian economy,reporters and commentators often refer to figures for the nation's GDP,its unemployment rate,and the CPI.Explain what each of these terms means and why each measure is significant.

Correct AnswerverifiedGDP stands for gross domestic product,wh...View AnswerShow Answer

In free markets,the lack of government control and regulation means that businesses find it easy to take advantage of customers by offering poor quality products at high prices.

Correct AnswerverifiedShow Answer

When the market price of a good is below the equilibrium price:

Correct AnswerverifiedShow Answer

Correct Answer
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C

Correct Answer
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True

Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
GDP stands for gross domestic product,wh...
View Answer

Correct Answer
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Correct Answer
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