Intro to Business

Entrepreneurs are important because they..

• make and spend lots of money.

• are good at making decisions.

• take risks to start new businesses.

• sell shares of stock to investors

Elizabeth wants to set up a consulting business that specializes in advanced analytics. Which of the following factors of production would she require?

• Capital

• Labour

• Information resources

• All of these

What is the difference between a command economy and a market economy?

• A market economy gives greater "life satisfaction" to people.

• 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

• We do not have to worry about this because we live in Canada.

• A command economy is more efficient than a market economy.

________ refers to everything outside an organization's boundaries that might affect it.

• Outward environment

• Inward environment

• Extraenvironment

• External environment

Since the increase in the unemployment level in a small Atlantic Canadian town, retailers have noticed that sales have decreased. The retailers are being affected by which element of the external environment?

• Socio-cultural

• Environmental

• Economic

• Political-legal

What is the pattern of short-term ups and downs in an economy called?

• Economic peaks and valleys

• Business variations

• Economic rhythms

• Business cycle

Which of the following best describes the term gross domestic product?

• The total value of all goods and services produced within a given period by a national economy through domestic factors of production

• The total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located

• Total quantity and quality of goods and services that a country's citizens can purchase on payday.

• The total value of all goods and services produced within a given period by a nation using domestic animal migration patterns.

Which of the following would be included in the gross national product of Canada?

• The profits earned by a Brazilian coffee company operating in Canada.

• The profits earned by a Brazilian coffee company operating in Peru

• The wages paid to Brazilian workers producing coffee for sale in Canada

• The profits earned by a Canadian-owned manufacturing plant in Brazil

What is the economic condition characterized by widespread increased prices?

• Deflation

• Unemployment

• Inflation

• Expansion

What are three factors that threaten stability?

• Inflation, deflation, and unemployment

• Productivity, unemployment, and inflation

• Productivity, inflation, and deflation

• Productivity, deflection, and wages