mgtac1.pdf

20 Pages
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Department
Management (MGT)
Course Code
MGTA01H3
Professor
Bill Mc Conkey

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Description
1) In the story "Voisey's Bay",Inco bought controlling interest in the site upon discovery of one of the world's richest nickel finds. There were delays in development of the site because: A) of a time-consuming and expensive environmentalreview process, along with difficult negotiations with the government of Newfoundland B) Inco found a richer nickel mine in Malaysia C) the company could not make a profit D) Inco didn't have enough capital E) Inco closed its Newfoundland office Answer: A Diff: 2 Page Ref: 5 2) Examples of businesses include the following, except: A) large corporations like Canadian Pacific or Alcan Aluminum B) local supermarkets C) non-profit organizations D) one-person businesses, like barbershops E) farms Answer: C Diff: 1 Page Ref: 6 3) Deborah wants to set up a business, but also wants to be aware of the roles business should take. Which of the following would Deborah not considerto be a role of business firms in the Canadian economy? A)regulate the marketplace with trade barriers B) provide employment for citizens C) provide community leadership D) provide profit incentive for business owners E) support charitable organizations Answer: A Diff: 2 Page Ref: 7 4) Profit is: A) the level of expenses B) the amount of sales C) whatremains after business expenses are subtracted from business revenues D) the value of shares in a company E) the taxes a company pays Answer: C Diff: 1 Page Ref: 6 5) This week, Mary's Variety had sales of $4 000, employees were paid$1 000, cost of goods was $1 500, and rent was $500. Profit forthe week was: A) $3 000 B) $4 000 C) $1 000 D) $1 500 E) $2 000 Answer: C Diff: 2 Page Ref: 6 Page16) Most of the goods and services consumed in Canada are produced by: A) the Canadian government B) overseas firms C) business firms D) countries of the Pacific Rim E) the U.S. economy Answer: C Diff: 1 Page Ref: 7 7) An economic system is: A) the way in which a nation allocates its resources among its citizens B) a government decree thatrequires certain goods and services to be provided C) a large government department that oversees how the economy is running D) a long standing agreement between citizens and governments on how an economy is run E) an agreement between countries that deal with free trade Answer: A Diff: 2 Page Ref: 7 8) 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: A) Japan B) England C) Peru D) France E) People's Republic of China Answer: B Diff: 1 Page Ref: 7 9) All of the following are factors of production except: A) technology B) naturalresources C) capital D) entrepreneurs E) labour Answer: A Diff: 2 Page Ref: 7 10) Naturalresources, as a factor of production for mining, is a practical consideration when a mining company considers: A) the amount of capitalrequired to build the mine B) the ease with which ore could be mined C) the number of miners available to mine the ore D) the number of customers who want to buy ore E) the profit that could be made from mining the ore Answer: B Diff: 3 Page Ref: 9 Page211) Naturalresources include: A) land, water, and gasoline B) the funds needed to start and operate a business C) land, water, and mineral deposits D) a large number of people with entrepreneurial tendencies E) the mental and physical capabilities of people Answer: C Diff: 1 Page Ref: 9 12) Labourincludes: A) everyone in the business B) only non-unionized employees C) only workers who do physical work D) only managers E) only unionized employees Answer: A Diff: 2 Page Ref: 8 13) A factorthat contributesdirectly to improving labour as a factor of production is: A) creation of more manual-labouring jobs B) better education for more of the population C) free tuition at post-secondary educational institutions D) increased purchasing power by employees E) programs that decrease unemployment Answer: B Diff: 3 Page Ref: 8 14) Susan wants to set up a small business. She should know that a major source of capital for most businesses, especially small businesses, is: A) business revenue B) loans from banks C) investors D) personal investment E) short-term loans Answer: D Diff: 1 Page Ref: 8 15) Marie owns a smallrestaurant and is thinking of expanding it to anotherlocation. She is best described as a(n): A) capitalist B) administrator C) entrepreneur D) venture capitalist E) employee Answer: C Diff: 1 Page Ref: 9 Page316) Entrepreneurs are important because they: A) are good at making decisions B) make lots of money C) take risks to start new businesses D) are rich E) are good managers Answer: C Diff: 3 Page Ref: 9 17) Bruce is wondering if he has the characteristics to be a good entrepreneur. You indicate that all of the following are characteristics of entrepreneurs except: A) an initiator B) a profit seeker C) a calculated risk taker D) a desire for a low-risk job E) someone who seeks opportunity Answer: D Diff: 2 Page Ref: 9 18) An individual who organizes the resources to produce goods and services to earn a profit, but also runs the risk of failure refers to: A) naturalresources B) capitalism C) entrepreneurs D) communism E) socialism Answer: C Diff: 2 Page Ref: 9 19) A command economy is: A) one in which the government controls all or most factors of production B) one where there is a mix of governmentregulation and free enterprise C) one in which the market directs what is made and in what quantity D) the type of economy found in Russia E) one in which customers demand what new products are to be made Answer: A Diff: 1 Page Ref: 9 20) The economic system in which producers and consumers control production and allocation decisions through supply and demand is called: A) socialism B) communism C) centrally planned economy D) market economy E) privatization Answer: D Diff: 1 Page Ref: 9 Page421) You are involved in a debate about communism. You must know that a major drawback to communism as an economic system is that: A) communism is becoming less attractive B) government operated enterprises are inefficient because of political considerations C) individuals contribute according to their ability D) government control of the factors of production is only temporary E) individuals receive economic benefits according to their needs Answer: B Diff: 2 Page Ref: 11 22) Command economies are most likely to be found in: A) Japan B) communist and socialist nations C) capitalistic societies D) western Europe E) the newly emerging Asian countries Answer: B Diff: 2 Page Ref: 9 23) Which of the following is not true in the communist economic system? A) the government owns and operates all the industries B) communist nations often expand their overall production rapidly because of centralized planning C) there is limited or no free enterprise D) most government-operated enterprises are inefficient E) centralized planning emphasis on capital equipment and military hardware has caused shortages of consumer goods Answer: B Diff: 3 Page Ref: 9-11 24) Stanislav lives in a country where all the sources of production are owned by the government. The economy system in his country is most likely: A) fascism B) socialism C) privatization D) mixed market E) communism Answer: E Diff: 2 Page Ref: 9 25) Which of the following is not true? A) No country in the world has a purely communistic economy. B) The United States is not a purely capitalistic economy. C) No country in the world has a purely capitalistic economy. D) The People's Republic of China and Cuba are purely communistic economies today. E) No country in the world has a purely socialistic economy. Answer: D Diff: 3 Page Ref: 9-13 Page526) What do the nations of Cuba, North Korea, Vietnam, and the People's Republic of China have in common? A) socialism B) mercantilism C) mixed economy D) market economy E) communism Answer: E Diff: 1 Page Ref: 10 27) An economic system that permits private ownership and control of small businesses but where the government is in control of large critical industries is known as: A) a mixed economy B) socialism C) mercantilism D) communism E) capitalism Answer: B Diff: 1 Page Ref: 9 28) Socialism is best described as: A) a market economy in which markets decide what, when, and how much to produce B) a kind of command economy in which the government owns and operates large critical industries C) an economic system with elements of both a planned economy and a market economy D) an economy that is free from any regulation or planning E) a kind of command economy in which the government owns and operates all industries Answer: B Diff: 2 Page Ref: 9 29) Socialist economies can stifle economic growth because: A) they are actually command economies B) management positions in state-controlled industries are often filled on the basis of political considerations C) they encourage unionization of employees D) they have too few regulations concerning product safety E) socialist economies actually have the bestrecord, and they do not stifle economic growth Answer: B Diff: 3 Page Ref: 11 30) Market economies have all of the following characteristics, except that they: A) allow businesses to charge whateverthey want fortheir products and services B)require government intervention in orderto prosper C) encourage entrepreneurship by offering profits as an incentive D) allow customers free choice E)rely on markets, not governments, to decide what, when, and for whom to produce Answer: B Diff: 1 Page Ref: 11 Page631) Market economies are the best for small businesses because they: A) allow small businesses to fail B) allow the business to do whateverit wants C) provide small businesses with lots of government assistance and protection D) provide a central plan in which small businesses can easily prosper E) protect small businesses from the power of large corporations Answer: B Diff: 1 Page Ref: 11 32) B2B has become popularin strategic business thinking. Which of the following statements is NOT true about B2B? A) B2B involves businesses joining togetherto create e-commerce companies. B) B2B stands for business-to-business electronic commerce. C) B2C transactions far exceed B2B transactions in dollar value. D) B2B activity is good news for consumers because it helps to make businesses more efficient, which will allow them to reduce their costs. That, in turn, will allow them to reduce prices. E) B2B transactions exceed $200 billion. Answer: C Diff: 3 Page Ref: 11 33) Canada is home to a(n) ________ economy. A) command B) mixed C) oligopolistic D) fair E) market Answer: B Diff: 2 Page Ref: 13 34) The role of government in our economic system includes all of the following except: A) taxation agent B) competitor C)regulator D) customer E) innovator Answer: E Diff: 2 Page Ref: 13-15 35) Sandy is responsible for monitoring compliance to regulations in her company. She needs to know that the important areas ofregulation are: A) protecting shareholderrights and business law B) protecting social goals, ecologicalregulations and shareholderrights C) protecting competition, consumer protection, social goals and protecting the environment D) protecting competition, consumer protection and environmentalregulations E) protecting competition and environmentalregulations Answer: C Diff: 2 Page Ref: 14 Page736) John is interested in preserving social goals in Canada. However, he is not certain which goals are subject to regulation. You point out that the social goals that governments regulate are the following except: A) a safe workplace B) employment insurance C) decent pensions D) motor vehicles E) public health-care system with wide access Answer: D Diff: 2 Page Ref: 15 37) Madeline is responsible for answering questions about what her company can do underthe Competition Act. Which one of the following is allowed underthe Act? A) pricing products unreasonably low to eliminate competition B) forming a merger or a monopoly that lessens competition C)refusal to sell to a retailer who, in turn, sells the product significantly below the suggested retail price D) giving selective allowances and rebates to cover advertising expenses to specific retailers E) the return of surpluses by credit unions to its members Answer: E Diff: 2 Page Ref: 15 38) Why are income taxes called progressive taxes? A) the more one makes, the higherthe income tax rate that is applied to one's entire income B) because poorer people spend proportionally more on necessities C) the more one makes, a greater proportion of additional amounts is paid in income taxes D) the more one progresses in a company, the more one pays in income taxes E) because it increases total consumption Answer: C Diff: 2 Page Ref: 15 39) Why are sales taxes called regressive taxes? A) because the more one makes, the lowerthe rate of sales tax that is applied to one's purchases B) because it applies to sales taxes C) because they discourage the purchase of some products D) because food and drugs are often exempt E) because poorer people pay a higher percentage of income than richer people Answer: E Diff: 2 Page Ref: 15 40) Incentive programs are designed to: A) create "corporate welfare bums" B) encourage families to have more babies C) encourage businesses to locate in depressed parts of the country D) encourage families to move to depressed parts of the country E) encourage businesses to make unprofitable products Answer: C Diff: 1 Page Ref: 16 Page841) The textbook describes three main ways in which business can influence government policy. They are: A) advertising, trade associations, political contributions B) political contributions, letters to the editors of newspapers, advertising C) lobbyists, political contributions, advertising D) trade associations, lobbyists, letters to the editors of newspapers E) advertising, lobbyists, trade associations Answer: E Diff: 1 Page Ref: 16 42) A semiconductor firm is opening a new manufacturing facility in Canada and is looking for ways to better influence government policy in theirindustry.It could: A) assure worker safety in business facilities B) obtain a government contract for supplies and equipment C) keep manufacturing plants in Canada D) obtain export business forthe new facility E) hire a lobbyist orjoin a trade association Answer: E Diff: 2 Page Ref: 16-17 43) As part of the Lobbyist Registration Act, lobbyists are required to: A) attend 50 percent of all sessions in the House of Commons B)register with the Department of Finance C)register with the Registrar of Lobbyists D)register with the Department of Consumer and Commercial Relations E)register with the Department of Lobbyists Answer: C Diff: 3 Page Ref: 16 44) The microelectronics manufacturers want to set up a trade association. They need to know that trade associations do all but which one of the following? A) conduct training programs relevant to the industry B) act as an industry lobby to influence legislation C) publish newsletters featuring articles on new products D) allocate markets fortheir members E) arrange trade shows Answer: D Diff: 3 Page Ref: 17 45) The economic term "demand"refers to: A) the stock exchange B) the willingness and ability of buyers to purchase a product or service C) the willingness of government to sell goods and services D) the willingness and ability of producers to purchase a product or service E) the willingness of sellers to sell goods Answer: B Diff: 1 Page Ref: 17 Page946) The law of demand states: A) buyers will purchase more of a product as the price falls B) producers will offer more of a product as the price rises C) producers will offer more of a product as the price falls D) buyers will purchase more of a product as the price rises E) that demand and supply meet at an equilibrium point Answer: A Diff: 1 Page Ref: 18 47) The law of supply states: A) producers will offer more of a product as the price rises B) that demand and supply meet at an equilibrium point C) producers will offer more of a product as the price falls D) buyers will purchase more of a product as the price falls E) buyers will purchase more of a product as the price rises Answer: A Diff: 1 Page Ref: 18 48) 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: A) the law of demand B) the law of supply and demand C) the demand curve D) the supply curve E) the law of supply Answer: A Diff: 2 Page Ref: 18 49) Kristine discovered that when she dropped the price of her paintings, more people were asking herto create paintings forthem. Kristine is experiencing: A) economic justice B) market price variations C) mercantilism D) the law of demand E) the law of supply Answer: D Diff: 2 Page Ref: 18 50) A demand and supply schedule: A) describes the supply for a product B) is the contractual agreement made between the buyer and seller C) describes the demand for a product D) allows one to assess the relationship between different levels of demand and supply at different prices E) is a formula by which one determines market equilibrium Answer: D Diff: 3 Page Ref: 19 Page1051) Which term is used to identify the willingness and ability of buyers to purchase a product? A) obligation B) prosperity C) demand D) profits E) wealth Answer: C Diff: 1 Page Ref: 17 52) A major 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: A) the law of market price B) the law of demand C) the law of supply D) the law of supply and demand E) the law of equilibrium Answer: C Diff: 3 Page Ref: 18 53) In the production of wheat, the law of demand: A) states that buyers will purchase more wheat as the price decreases B) occurs when farmers produce a bumper crop of wheat C)refers to the exchange process between the farmer and the buyer of wheat D)reflects the farmer's desire to offer more wheat as demand increases E)reflects the farmer's desire to increase wheat production Answer: A Diff: 2 Page Ref: 18 54) A major producer of televisions is experiencing difficulty in selling its products. A corporate decision is made to lowerthe price, anticipating that sales will increase as a result of the lower price. This illustrates: A) the law of supply and demand B) the law of supply C) the law of market price D) the law of equilibrium E) the law of demand Answer: E Diff: 3 Page Ref: 18 55) The point at which the quantity of a product or service demanded is the same as the quantity supplied is called: A) the shortage point B) the supply point C) the surplus point D) the demand point E) the equilibrium point Answer: E Diff: 1 Page Ref: 19 Page1156) On a graph showing the supply curve and the demand curve, the point at which the two curves intersect is called: A) the crossover B) the equilibrium price C) the law of demand D) the junction E) the break-even point Answer: B Diff: 2 Page Ref: 19 57) At the point where the supply curve crosses the demand curve on a graph, it could be said that: A) no profits will be made B) all products offered for sale will be sold C) no sales will be made D) a surplus willresult E) a shortage willresult Answer: B Diff: 2 Page Ref: 19 58) The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service willing to be produced is known as the: A) equilibrium curve B) variable price curve C) demand curve D) balance curve E) supply curve Answer: E Diff: 2 Page Ref: 19 59) The points on a curve showing the relationship between the price of a good or service and the quantity of that good or service which customers will purchase is known as the: A) variable price curve B) supply curve C) demand curve D) equilibrium curve E) balance curve Answer: C Diff: 2 Page Ref: 19 60) Equilibrium in the market is attained when: A) the laws of supply and demand interact to set the price and quantity of a product at which buyers and sellers agree B) no single firm has more than 50 percent of the market C) there are no dramatic changes in the market overtime D) suppliers are willing to produce the quantity demanded E) consumers are willing to pay the price being charged Answer: A Diff: 2 Page Ref: 19 Page1261) If the equilibrium point of 5-for-1 Pizza is 2 000 pizzas per week and $10.00 per pizza, and the owner decides to make 2 200 pizzas and sell them at the same price, what is the likely outcome? A) the business will have less expenses and also have greater profit B) the business will have a surplus C) the business will have less expenses D) the business will have shortage E) the business will make more profit Answer: B Diff: 3 Page Ref: 19 62) 5-for-1 Pizza is operating at the point where the supply curve intersects the demand curve.If the owner decides to increase the price and not change the production level, what willresult? A) a shift in the supply curve B) a shortage C) a shift in the demand curve D) a surplus E) more profit Answer: D Diff: 2 Page Ref: 19 - 20 63) The marketresearch department estimated that 5 000 CDs would be purchased at a price of $8.00 each. As it turned out, the demand was 6 000. The company is in a(n) ________ condition. A) shortage B) depression C) surplus D) growth E) inflation Answer: A Diff: 1 Page Ref: 19 - 20 64) If the market for chocolate was at equilibrium point and suddenly half of the chocolate in the world disappeared, what would be the immediate effect? A) there would be no change in either price or demand B) the price would increase due to a surplus C) the price would decrease due to a surplus D) the price would increase due to a shortage E) the price would decrease due to market equilibrium Answer: D Diff: 3 Page Ref: 19-20 65) What basic argument did Adam Smith make in his book,The Wealth of Nations? A) national wealth was created fastest by the mercantile system B) government should not interfere in the economy, but should let business function withoutregulation orrestriction C) someone will be more successful in business if he or she is a leader and true entrepreneur D) socialism is the best economic system E) the government should own the means of production Answer: B Diff: 3 Page Ref: 26 Page1366) Adam Smith, author ofThe Wealth of Nations, argued that a society's interests would be best served by: A) the political parties B) socialism C) monopolies D) communism E) private enterprise Answer: E Diff: 1 Page Ref: 26 67) Private enterprise requires four elements: A) the right to product safety, consumer choice, freedom of information, and no government intervention in business B) land, labour, capital, and entrepreneurship C) private property rights, freedom of choice, profits and competition D) supply, demand, equilibrium and monopoly E) communism, capitalism, socialism and privatization Answer: C Diff: 2 Page Ref: 21 68) The "Wealth of Nations"theory of laissez-faire was proposed by: A) the Disney Institute B) Andrew Carnegie C) Henry Ford D) Adam Smith E) Karl Marx Answer: D Diff: 1 Page Ref: 26 69) Private enterprise requires all of the following, except: A) competition B) freedom of choice C) private property rights D) a demand and supply schedule E) profits Answer: D Diff: 1 Page Ref: 21 70) In his book,The Wealth of Nations, Adam Smith maintained that the creation of wealth should be the concern of: A) students B) the government C) heavenly powers D) individuals and firms E) all citizens
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