Question 1

G.S.T.is considered a regressive tax because

Accepted Answer

poorer people pay a higher percentage of their income than richer people.

Question 2

When Labatt Brewing sales representatives gave money to store operators who agreed to not lower prices on some brands of beer,the company was prosecuted for engaging in

Accepted Answer

resale price maintenance.

Question 3

Which law forbids most monopolies in Canada?

Accepted Answer

Competition Act

Question 4

The law of supply states that

Accepted Answer

producers will offer more of a product as the price rises.

Question 5

Why are sales taxes called regressive taxes?

Accepted Answer

Because poorer people pay a higher percentage of their income than richer people

Question 6

The textbook describes three main ways in which business can influence government policy.They are

Accepted Answer

advertising,lobbyists,trade associations.

Question 7

Which of the following statements is most correct with respect to government in its role as regulator?

Accepted Answer

Business complains that the Competition Bureau is too slow in approving or denying merger plans.

Question 8

If a semiconductor firm is opening a new manufacturing facility in Canada and is looking for ways to better influence government policy in their industry,it could

Accepted Answer

hire a lobbyist or join a trade association.

Question 9

A producer of televisions is experiencing difficulty in selling its products.A corporate decision is made to lower the price,anticipating that sales will increase as a result of the lower price.This illustrates

Accepted Answer

the law of demand.

Question 10

In 2011,the Canada Consumer Product Safety Act came into effect.One of the concerns expressed about the Act was that

Accepted Answer

small businesses would be hurt.

Question 11

The Canada Consumer Product Safety Act replaces the

Accepted Answer

Hazardous Products Act.

Question 12

Ian,the owner of 5-for-1 Pizza,has noticed that when he increases the price of his pizzas by $2.00,the number of pizzas that he sells drops by 30 percent.Ian has discovered

Accepted Answer

the law of demand.

Question 13

A demand and supply schedule

Accepted Answer

allows assessment of the relationship between different levels of demand and supply at different prices.

Question 14

Which of the following is correct with respect to the issue of government taxation?

Accepted Answer

Regressive revenue taxes are levied at the same rate regardless of a person's income.

Question 15

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years.The firm decides to expand its battery production.This illustrates

Accepted Answer

the law of supply.

Question 16

Nutrition labelling and claims are intended to provide consumers with information to aid them in the selection of a healthy diet aimed at reducing risk of premature illness and death due to diet-related chronic diseases.Insufficient labelling is violation of which act?

Accepted Answer

Food and Drug Act

Question 17

Why are income taxes called progressive taxes?

Accepted Answer

Because the more one makes,the greater the proportion of additional amounts paid in income taxes

Question 18

The term "demand" refers to

Accepted Answer

the willingness and ability of buyers to purchase a product or service.

Question 19

The law of demand states that

Accepted Answer

buyers will purchase more of a product as the price falls.

Question 20

The point at which the quantity of a product or service demanded is the same as the quantity supplied is called

Accepted Answer

the equilibrium point.

Quiz 1: Understanding the Canadian Business System