Business, Seventh Canadian Edition with MyBusinessLab, 7E BY Ricky W. Griffin
Email: richard@qwconsultancy.com
Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct with regard to the opening case entitled "The Ups 1) _______ and Downs of Commodities"? A) The demand for commodities in China stayed high even during the recession of 2008. B) The Alberta oil sands become more profitable when oil prices decline. C) The ups and downs in the prices of commodities provide low risk opportunities for profits for investors. D) The steep decline in the price of oil caused many oil companies to put new oil sands projects on hold. E) Unlike oil, palladium and palm oil have not fluctuated much in price during the past decade.
2) Profit is A) equal to total revenue minus cash expenses. B) what remains after business expenses are subtracted from business revenues. C) double the amount the company pays in taxes. D) the amount of sales minus 50 percent. E) equal to the market value of shares in a company.
2) _______
3) This week, Jessica's Variety Store had sales of $4,000, employees were paid $1,000, the cost of goods was $1,500, and rent was $500. Profit for the week was A) $3,000. B) $1,500. C) $4,000. D) $2,000. E) $1,000.
3) _______
4) ________ is the difference between a business firm's revenues and its expenses. A) Cost of goods sold B) Profit C) Productivity D) Sales E) Debt
4) _______
5) Profit is A) what remains after business expenses are subtracted from business revenues. B) gross sales minus taxes a company pays. C) gross revenue minus taxes a company pays. D) the level of expenses divided by the firm's assets. E) the market value of shares of stock in a company.
5) _______
6) Examples of businesses include all of the following except A) large corporations like Canadian Pacific or Alcan Aluminum. B) one-person businesses, like barbershops. C) local supermarkets. D) farms. E) non-profit organizations.
6) _______
7) Most of the goods and services consumed in Canada are produced by A) businesses in the U.S. B) the Canadian government. C) countries of the Pacific Rim. D) countries in the European Union. E) business firms.
7) _______
8) Generally speaking, which one of the factors of production is most important? A) Capital B) Entrepreneurship C) Labour D) Land E) None of these
8) _______
9) An economic system is A) a long standing agreement between citizens and governments on how an economy is run. B) an agreement between countries that deal with free trade. C) a government decree that requires certain goods and services to be provided. D) a large government department that oversees how the economy is running. E) the way in which a nation allocates its resources among its citizens.
9) _______
10) The key difference between economic systems is A) who controls the banks. B) the management of the factors of production. C) the management of capital and labour. D) the structure of government. E) who controls large industries like steel and auto manufacturing.
10) ______
11) A nation's economic system is its way of A) collecting taxes. B) supplementing low-income families. C) regulating business firms by government laws. D) allocating resources among its citizens. E) managing the money supply.
11) ______
12) In terms of factors of production, Imperial Oil's crude oil reserves are an example of ________, while market forecasts are an example of ________. A) information; natural resources B) labour; entrepreneurs C) information; labour D) natural resources; information E) capital; information
12) ______
13) All of the following are factors of production except A) entrepreneurs.
13) ______
B) labour. C) technology. D) natural resources. E) capital.
14) Entrepreneurs are important because they A) are good at making decisions. B) are rich. C) take risks to start new businesses. D) are good managers. E) make lots of money.
14) ______
15) Labour includes A) only non-unionized employees. B) only unionized employees. C) everyone in a business. D) only workers who do physical work. E) only managers.
15) ______
16) A factor that contributes directly to improving labour as a factor of production is A) increased purchasing power by employees. B) creation of more manual-labour jobs. C) better education for more of the population. D) free tuition at post-secondary educational institutions. E) programs that decrease unemployment.
16) ______
17) Natural resources, as a factor of production for mining, are a practical consideration when a mining company considers A) the ease with which ore could be mined. B) the number of miners available to mine the ore. C) the number of customers who want to buy ore. D) the profit that could be made from mining the ore. E) the amount of capital required to build the mine.
17) ______
18) What is the difference between a command economy and a market economy? A) A market economy gives greater "life satisfaction" to people. B) A command economy relies on centralized government control of the factors of production, while in a market economy supply and demand determine production and allocation decisions. C) A command economy is more efficient than a market economy. D) There really are no significant differences between a command economy and a market economy. E) A command economy is found only in communist countries, while a market economy is found only in capitalist countries.
18) ______
19) A command economy is
19) ______
A) one in which customers demand what new products are to be made. B) one in which the market directs what is made and in what quantity. C) one where there is a mix of government regulation and free enterprise. D) the type of economy found in Australia and New Zealand. E) one in which the government controls all or most factors of production.
20) The economic system in which producers and consumers control production and allocation decisions through supply and demand is called A) privatization. B) a centrally planned economy. C) a market economy. D) socialism. E) communism.
20) ______
21) Which country would most likely have a command economy? A) Japan B) Australia C) Canada D) Cuba
21) ______ E) Germany
22) Which of the following is correct with regard to the communist economic system? A) Most government-operated enterprises are very efficient because of central planning. B) The centralized planning emphasis on capital equipment and military hardware has caused declines in the prices of consumer goods. C) The government owns and operates all sources of production. D) Government ownership of the means of production is only temporary. E) Overall production expands rapidly because of central planning.
22) ______
23) Elizabeth wants to set up a consulting business that specializes in mathematical problem solving. Which of the following factors of production would she require? A) Labour B) Information resources C) Capital D) Natural resources E) All of these
23) ______
24) Stanislav lives in a country where all the factors of production are owned by the government. The economic system in his country is A) capitalism. B) mixed market. C) socialism. D) communism. E) It is not possible to tell with the information provided.
24) ______
25) "Embrace the opportunities and accept the risks" is a phrase that best characterizes the ________ attitude. A) socialist B) entrepreneurial C) communist
25) ______