Question 1

Which of the following is correct regarding the Competition Act?
The Act prohibits agreements between companies that reduce competition.
The government has to prove that agreements between companies actually reduce competition.
Recent changes to the Act have reduced fines for misleading marketing practices because it has been shown that these fines don't have any effect.
Surveys of business executives show that they think the Competition Bureau is actually quite quick in approving or denying merger requests.
All of these

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Question 2

Why are sales taxes called regressive taxes?
Because food and drugs are often exempt
Because the more one makes, the lower the rate of sales tax that is applied to one's purchases
Because poorer people pay a higher percentage of their income than richer people
Because it applies to sales taxes
Because they discourage the purchase of some products

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The answer of Why are sales taxes called regressive taxes?
Because...

Question 3

Market economies are considered beneficial for small businesses because they
provide small businesses with lots of government assistance and protection.
provide a central economic plan within which small businesses can easily prosper.
protect small businesses from the power of large corporations.
allow small businesses to fail.
allow the business to do whatever it wants as long as it doesn't break the law.

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Question 4

The Canada Consumer Product Safety Act replaces the
Hazardous Products Act.
Food and Drug Act.
Weights and Measures Act.
Advertising and Packaging Act.
Textile Labeling Act.

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Question 5

Why are income taxes called progressive taxes?
Because poorer people spend proportionally more on necessities
Because the more one makes, a greater proportion of additional amounts is paid in income taxes
Because the more one makes, the higher the income tax rate that is applied to one's entire income
Because they increase total consumption
Because the more one progresses in a company, the more one pays in income taxes

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The answer of Why are income taxes called progressive taxes?
Because...

Question 6

Jose is from Guatemala. He is unsure about the nature of business in Canada. You point out that a typical business in Canada operates the same as a typical business in
The People's Republic of China.
Poland.
Peru.
England.
Japan.

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The answer of Jose is from Guatemala. He is unsure...

Question 7

In which economic system will profit motivate entrepreneurs to use resources efficiently and to produce goods that consumers want?
A centrally planned economy
Communism
A market economy
Socialism
A barter economy

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Question 8

Sandy is responsible for monitoring compliance with regulations in her company. She needs to know that the important areas of government regulation are
protecting competition and upholding environmental regulations.
protecting social goals, upholding environmental regulations, and protecting shareholder rights.
protecting competition, protecting consumers, and upholding environmental regulations.
protecting competition, protecting consumers, protecting social goals, and protecting the environment.
protecting shareholder rights, and following business law.

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Question 9

The federal government sold the Lester B. Pearson International Airport in Toronto to a group of entrepreneurs, which then set up the Greater Toronto Airports Authority. This sale is an example of
socialism.
freedom of choice.
entrepreneurship.
deregulation.
privatization.

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Question 10

Madeline is responsible for answering questions about what her company can do under the Competition Act. Which one of the following is allowed under the Act?
The return of surpluses by credit unions to their members
Pricing products unreasonably low to eliminate competition
Forming a merger or a monopoly that lessens competition
Refusing to sell to a retailer who will, in turn, sell the product significantly below the suggested retail price
Giving selective allowances and rebates to cover advertising expenses to specific retailers

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Question 11

Which of the following is correct with regard to the Competition Act?
A company can cut prices in one region of Canada while selling at a higher price everywhere else even if this substantially lessens competition.
Businesses are generally satisfied that the Competition Bureau moves fairly quickly in approving or denying merger plans.
Pyramid selling is permitted as long as participant know they are involved in a pyramid selling scheme and they may not make any money from the scheme.
The mere existence of a conspiracy is assumed to be proof that competition has been reduced.
All of these are correct.

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Question 12

The role of government in our economic system includes all of the following except
customers.
innovators.
competitors.
regulators.
taxation agents.

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Question 13

What is the difference between privatization and deregulation?
Research shows that deregulation yields higher economic performance than privatization.
Privatization only works in socialist countries.
Privatization means converting companies that are in financial trouble into government-controlled organizations.
The trend toward both privatization and deregulation slowed somewhat after the financial crisis of 2008.
There is no real difference between the two ideas.

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Question 14

Which of the following is correct with respect to input and output markets?
In the input market, firms supply goods and services in response to demand on the part of households.
In the output market, firms buy resources from households, which then supply those resources.
Consumer buying patterns provide information that helps companies decide which products to produce.
Consumers are restricted in the companies they can work for.
Input and output markets exist only in communist countries.

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The answer of Which of the following is correct with...

Question 15

Which of the following is correct with respect to the issue of government taxation?
Progressive revenue taxes are harder on low-income people than on high-income people.
Revenue taxes are designed primarily to encourage people to buy certain kinds of goods and avoid buying other kinds.
Restrictive taxes prevent businesses from expanding.
Regressive revenue taxes are levied at the same rate regardless of a person's income.
All of the statements are correct.

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The answer of Which of the following is correct with...

Question 16

Canada is home to a(n) ________ economy.
mixed market
oligopolistic
socialist
market
command

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mixed...

Question 17

Market economies have all of the following characteristics, except that they
allow businesses to charge whatever they want for their products and services.
encourage entrepreneurship by offering profits as an incentive.
require government intervention in order to prosper.
rely on markets, not governments, to decide what, when, and for whom to produce.
allow customers free choice.

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Question 18

Which of the following is correct with respect to mixed market economies?
They have features that are not found in either command or market economies.
As a result of the financial crisis of 2008, there is a trend toward increased government regulation of business in mixed market economies.
Very few countries have this type of system.
There is a trend toward increased government ownership of business in mixed market economies.
The mixed market economy is the best type of economic system.

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The answer of Which of the following is correct with...

Question 19

Which of the following is correct with respect to privatization?
The TNT Post Group in the Netherlands has been converted from private to government ownership.
Privatization is most likely to occur in communist countries.
Privatization has been a general trend during the last decade, but some countries are going in the opposite direction and pursuing nationalization instead.
Several companies have been nationalized in Canada in recent years.
The recession of 2008 accelerated the trend toward privatization.

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The answer of Which of the following is correct with...

Question 20

John has just received a rather handsome increase in salary, but he is upset because he feels that he should not be charged a higher rate of tax on this extra money. John is being taxed by a ________ tax system.
provincial
federal
progressive
restrictive
regressive

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The answer of John has just received a rather handsome...

Quiz 1: Understanding the Canadian Business System

The Canada Consumer Product Safety Act replaces the Hazardous Products Act. Food and Drug Act. Weights and Measures Act. Advertising and Packaging Act. Textile Labeling Act.

Jose is from Guatemala. He is unsure about the nature of business in Canada. You point out that a typical business in Canada operates the same as a typical business in The People's Republic of China. Poland. Peru. England. Japan.

In which economic system will profit motivate entrepreneurs to use resources efficiently and to produce goods that consumers want? A centrally planned economy Communism A market economy Socialism A barter economy

The federal government sold the Lester B. Pearson International Airport in Toronto to a group of entrepreneurs, which then set up the Greater Toronto Airports Authority. This sale is an example of socialism. freedom of choice. entrepreneurship. deregulation. privatization.

The role of government in our economic system includes all of the following except customers. innovators. competitors. regulators. taxation agents.

Canada is home to a(n) ________ economy. mixed market oligopolistic socialist market command

John has just received a rather handsome increase in salary, but he is upset because he feels that he should not be charged a higher rate of tax on this extra money. John is being taxed by a ________ tax system. provincial federal progressive restrictive regressive