Test bank for business 6th canadian edition by ferrell

Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Exam Name _ TRUE/FALSE Write 'T' if the statement is true and 'F' if the statement is false 1) Products have tangible attributes only 1) 2) The goal of business activities is to earn a profit 2) 3) Non-profit organizations, such as the Canadian Red Cross, not have to engage in management, marketing, or finance activities 3) 4) Organizations such as the Special Olympics have two fundamental purposes: to earn a profit and to accomplish social objectives 4) 5) Profit is what it costs to make and sell a product 5) 6) Businesses have the right to keep and use their profits as they choose, without limitations 6) 7) Earning profits contributes to society by providing employment, which in turn provides money that is reinvested in the economy 7) 8) Finance is concerned with obtaining money and using it effectively 8) 9) Owners have little responsibility to provide funds for the operation of the business 9) 10) Managers 11) The coordinate resources to achieve organizational objectives focus of all marketing activities is customer satisfaction 12) Owners always manage their businesses themselves business will help you develop skills to employ in a future career, if that career takes place in the country where you studied business topics 10) 11) 12) 13) Studying 13) 14) One 14) 15) A 15) 16) Natural 16) of the best-known Canadian marketing initiatives of all time is Tim Hortons' "Roll Up the Rim to Win" campaign central issue of economics is how to fulfill consumers' unlimited demand for goods and services in a world with limited resources resources include land, minerals, water, and other gifts of nature which are not made by humans Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 17) As the baby boomers, who make up roughly one-third of Canada's population, retire, Canada may face a labour shortage in some sectors 17) 18) Capitalism 18) 19) China 19) 20) Russia, 20) 21) The 21) is an economic system in which the government owns and operates basic industries while individuals own most other businesses is an example of a communist economy that exists today which satisfies Karl Marx's ideal of communism Poland, Hungary, and other Eastern European nations have turned away from communism and toward economic systems governed by supply and demand rather than by central planning Chinese state is the largest shareholder among China's largest companies and influences thousands of other businesses 22) Most socialist nations are democratic 22) 23) Human resources refer only to the mental abilities of people used to produce goods and services; it is synonymous with knowledge 23) 24) If 24) 25) Demand 25) 26) The 26) free enterprise is going to be successful, individuals must have the right to choose what career to pursue, where to live, what goods and services to purchase, and more is the quantity of goods and services that consumers are willing to buy at different prices at a specific time demand curve is upward sloping 27) The equilibrium price is represented by the point where a product's supply and demand curves intersect 28) Monopolistic competition exists when there is only one producer of a product in a given 27) 28) market 29) An oligopoly exists when there are many small businesses selling one standardized product 30) Government-granted monopolies are not subject to government-regulated prices 31) A product's equilibrium price is constantly changing in response to changes in economic conditions, availability of resources, and degree of competition 29) 30) 31) Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 32) Economic expansion occurs when an economy is growing and people are spending more 32) money 33) The standard of living rises because people have less money to spend 34) Inflation 35) A is a condition characterized by falling prices severe recession may turn into a depression 36) During a recession, unemployment is unusually low domestic product is the sum of all goods and services produced in a country during a year 33) 34) 35) 36) 37) Gross 37) 38) Since 38) 1997, it has been common policy for the government of Canada to run large budget deficits 39) Canada 40) When has had a positive trade balance for much of the last decade a nation collects more from taxes than it spends, it has a budget deficit 41) Industrialization 42) The 39) 40) mostly occurred in Central Canada 41) Canadian Pacific Railway linked Canada from north to south 42) 43) Advertising first made consumers aware of differences in products and prices in the marketing economy 43) 44) Entrepreneurs 44) risk their wealth, time, and effort to develop for profit an innovative product or way of doing something 45) Entrepreneurship 46) In is essential to a free-enterprise system a free-market system, the government regulates business 47) Free-market capitalism and laissez-faire capitalism are essentially the same thing has shown that ethical behaviour cannot only enhance a company's reputation but can also drive profits 45) 46) 47) 48) Research 48) 49) Society 49) demands ethical and socially responsible business behaviour towards customers and investors only There seems to be less of a concern for other stakeholder groups including government regulators and the environment Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question 50) Businesses differ from non-profit organizations in that a business' focus is on: 50) A) profits B) plans price D) goods E) organization C) 51) When purchasing a product, the consumer is actually buying its anticipated benefits and the it brings A) form B) costs C) price D) satisfaction E) productivity 51) 52) If 52) a business is to be successful in the long run, it must treat its customers, employees, and community with social: A) responsibility B) insight C) interests D) integrity E) agendas of the following is not a product? A) Profits earned by businesses B) A veterinarian's treatment of a pet's injuries C) A checkup by a doctor D) A lawyer's advice in a divorce case E) A Mac personal computer 53) Which 53) 54) The 54) goal of business is to earn: A) resources B) independence C) a profit D) responsibility E) respect Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 55) The functions of organizing, staffing, planning, and controlling are most closely associated with: A) employees B) accountants C) stockholders D) customers E) managers 55) 56) Which 56) 57) Advertising, 57) 58) One 58) 59) When 59) 60) The 60) of the following functions involve activities designed to provide goods and services that fulfill the needs and wants of consumers? A) Marketing B) Accounting C) Finance D) Production E) Engineering personal selling, coupons, and sweepstakes are forms of: A) marketing research B) management activities C) publicity D) the marketing mix E) promotion of the best-known Canadian marketing initiatives of all time is: A) The Air Miles Program B) HBC's reward program C) Petro-Points D) Tim Hortons' "Roll Up the Rim to Win" E) The President's Choice points a business fails or does not make a profit, the have the most to lose A) workers B) customers C) consumers D) managers E) owners function concerned with obtaining and managing money and using it effectively is called: A) personnel B) marketing C) finance D) management E) production and operations Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 61) The group of people to whom management activities most apply is: A) bankers B) consumers C) government regulators D) owners E) employees 61) 62) All of the following are factors of production used to make goods and services, except: resources B) natural resources C) customers D) human resources E) capital 62) 63) All of the following are examples of natural resources, except: A) nickel B) fisheries C) forests D) human mental talent E) minerals 63) 64) Factors 64) 65) Resources 65) 66) Which 66) A) financial of production are: A) free B) resources used to produce goods and services C) fixed resources D) seldom in demand E) taxes may be: A) human B) services C) concepts D) machines E) ideas of the following questions are addressed by all economic systems? A) Who will produce the goods? B) What goods and services should be produced? C) How much of each good and service should be produced? D) How should the goods and services be distributed? E) All of these questions must be addressed by all economic systems Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 67) All of the following are true in a communist economy, except: A) that consumers have a wide choice of goods and services B) that supply is determined by central government planning C) the means of production are owned by the government D) the government decides how the goods will be produced E) the government chooses what will be produced 67) 68) Communist 68) societies: not spend much on defense B) have only one class of people C) seldom have consumer shortages D) have a high standard of living E) appear to be efficient and equitable, at least in theory A) 69) Socialism: 69) A) allows only private ownership of business only government ownership of the factors of production C) is becoming more popular D) has government ownership of basic industries E) all of the answers accurately describe socialism B) allows 70) Socialist economies praise their egalitarianism, which means income and social services are distributed: A) equally B) to the elite only C) to the homeless D) unequally E) to the poor only 70) 71) Under 71) 72) The 72) a capitalist system, goods and services provided are determined by all of the following, except: A) businesses owned by the government B) competition C) consumer demand D) supply E) market forces difference between pure capitalism and modified capitalism is that: A) under modified capitalism, there is less government regulation B) for either form of capitalism, government regulation is equal C) under pure capitalism, there is less government regulation D) under pure capitalism, there is more government regulation E) none of the answers accurately describe the difference between pure capitalism and modified capitalism Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 73) Most economic systems: A) are ineffective B) give individuals freedom C) exist in a pure form D) create revolutions E) exist in a mixed form 73) 74) Private 74) 75) Which of the following systems has the highest degree of competition? capitalism B) Communism C) Pure capitalism D) Mixed economy E) Socialism 75) which economic system(s) are basic services provided by the central government? A) Communism and capitalism B) Communism and socialism C) Socialism only D) Capitalism and socialism E) Capitalism only 76) property, profits, independent business decisions, and freedom of choice are rights associated with: A) socialism B) egalitarianism C) free enterprise D) communism E) humanitarianism A) Modified 76) In 77) Which of the following countries best depict a communist economic system? B) Poland C) Russia D) Canada E) Cuba 77) A) Hungary 78) If an economist is analyzing the quantity of goods or services that businesses are willing to sell at different prices at specific times, then the focus is on: A) equilibrium B) supply C) demand D) competition E) pure competition 78) Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 79) Suppliers are generally willing to: A) supply more at a lower price B) determine equilibrium prices C) supply more at a higher price D) lower prices below costs E) demand more at a higher price 79) 80) When 80) Walmart has a sale on digital cameras: will demand more digital cameras B) the store won't supply more digital cameras than it normally does C) the manufacturer will halt production of digital cameras D) consumers won't demand more digital cameras than normal E) consumers will demand fewer digital cameras A) consumers 81) When Apple introduced the iPod portable digital music player, the price of and demand for digital music players was high As a result: A) consumers stopped buying digital music players B) other suppliers introduced digital music players to meet the demand C) competition was not allowed to enter the market D) manufacturers stopped producing digital music players E) the equilibrium price met the supply 81) 82) Supply 82) 83) Competition 83) and demand may be an efficient way to distribute resources: A) and it is always fair B) but it doesn't allow the poor to get rich C) but it helps inefficient producers to succeed D) although equilibrium price is determined by the government E) but it may not distribute resources equally among those who need them fosters efficiency because: government regulates prices B) producers have to offer the best products at reasonable prices C) businesses can set whatever prices they want D) supply depresses prices E) all buyers have perfect knowledge A) the 84) If Chrysler raises the prices of its new models of pickup trucks by percent and General Motors and Ford follow by raising prices by a similar amount, then this is evidence of: A) a monopoly B) an oligopoly C) monopolistic competition D) supply and demand E) pure competition 84) Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 85) Monopolies that function in a capitalistic economy are likely to have prices determined 85) by: A) the interaction of supply and demand law of supply C) the law of demand D) equilibrium interaction E) government regulation B) the 86) Using the supply and demand curves shown in the graph that follows, what is the equilibrium price for soft drinks? 86) [INSERT GRAPHIC] A) 75 cents B) 50 cents C) 55 cents D) 35 cents E) 45 cents 87) When businesses can promote different features of their products and consumers are willing to pay more for products containing the features they desire, the competitive environment is probably: A) pure capitalism B) pure competition C) a monopoly D) an oligopoly E) monopolistic competition 87) 88) Agricultural 88) commodities are usually sold in which competitive environment? competition B) Oligopoly C) Pure competition D) Monopoly E) Pure capitalism A) Monopolistic 89) Which competitive environment best describes the market for wheat, corn, and cotton? A) Pure competition B) Monopolistic competition C) Oligopoly D) Pure capitalism E) Monopoly 89) 90) Which 90) competitive environment best describes the market for Canadian air travel? competition B) Monopoly C) Pure competition D) Pure capitalism E) Oligopoly A) Monopolistic 10 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 91) Economic expansion occurs when: A) prices begin to rise and incomes begin to fall B) fewer goods and services are produced than consumers demand C) a nation's standard of living drops quickly D) an economy is growing and people are spending more money E) employment levels decline over time 91) 92) Economic contraction occurs when: levels increase over time B) prices begin to rise and incomes rise accordingly C) a nation's standard of living remains stable over time D) spending declines and businesses cut back on production E) more goods and services are demanded by consumers 92) continuing rise in prices over a period of time refers to: A) stagflation B) an economic contraction C) a recession D) an economic expansion E) inflation 93) A) employment 93) A 94) Economic contraction generally leads to: A) higher employment B) deflation C) increased spending D) inflation E) recession 94) 95) Countries 95) 96) Increased 96) measure the state of their economies in order to: A) avoid taking corrective action B) control government spending C) let other nations know the state of their economic health D) regulate wages and employment E) determine whether they are expanding or contracting unemployment can reduce consumer demand for goods and services leading to A) higher employment levels B) economic expansion C) deflation D) inflation E) a budget deficit 11 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 97) A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a(n): A) balance of trade B) economic expansion C) economic contraction D) stagnant income E) budget deficit most recent recession in Canada occurred during: A) 20132015 B) 20082009 C) 20102011 D) 20012003 E) 19901992 97) 98) The 98) 99) Inflation 99) in Canada is typically measured by: consumer price index B) The trade balance C) The gross domestic product D) Worker productivity E) Per capita income A) The 100) The concept of GDP in relation to population is called: A) Average income B) Per capita income C) GDP per capita D) Income per head E) Gross national product 100) 101) GDP per capita is highest in which of the following countries? A) Argentina B) Australia C) Canada D) Germany E) the United States 101) 102) The early economy of Canada was marked by settlers who operated a society primarily based on: A) agriculture B) information C) manufacturing D) technology E) sweatshops 102) 12 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 103) All of the following are associated with the Industrial Revolution, except: A) farm equipment B) machines C) computers D) railroads E) factories 103) 104) In the history of the Canadian economy, the period or stage following the Industrial Revolution was known for its emphasis on: A) manufacturing B) agriculture C) technology D) service E) both manufacturing and agriculture 104) 105) The entrepreneur has been primarily associated with a willingness to A) stay conventional B) be repetitive C) take risks D) follow others E) be conservative 105) 106) Time-pressed Canadians are increasingly: A) relaxing B) sleeping C) reading D) reducing the time they spend at work E) paying others to their own home tasks 106) 107) As women entered the workforce in increasing numbers, Canadians began to pay others to jobs for them which made their lives easier This began the transformation of the Canadian economy into a: A) agricultural economy B) financial economy C) service economy D) sluggish economy E) industrial economy 107) 13 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 108) Technological trends have gradually changed Canada to a(n) economy focused on making life easier for busy consumers A) manufacturing B) marketing C) agriculture D) technology E) service 108) 109) All of the following are associated with the manufacturing economy, except: A) marketing B) marketing research C) cable television D) buying on a time-payment plan E) advertising 109) 110) What Enron, Maple Leaf, and SNC-Lavalin have in common? A) They were scrutinized by the media because of their use of sweatshops in less developed nations B) They are all corporations that experienced a sudden, unexplained increase in their stock price C) They all experienced a number of ethical issues widely publicized in the media D) They are the top three Canadian manufacturing organizations E) They are all service producing multi-national corporations 110) ESSAY Write your answer in the space provided or on a separate sheet of paper 111) Briefly describe the goals of a business, especially the primary goal 112) Provide an example of a product which is also a service and how that provides value to customers 113) Provide an example of an organization that does not have the fundamental purpose of earning profits 114) Describe one business' efforts to reduce the impact that business' waste has on the environment 115) Describe the relationship between management, marketing, finance, owners, employees, and customers 116) Describe some of the activities of marketing professionals 117) What are the three questions that all economic systems must answer? Who answers them under a communist system? A socialist system? A capitalist system? 118) List the three major categories of economic resources and give one example of each 14 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell 119) Contrast communism and socialism, in terms of business ownership, competition, profits, product availability and price, and employment options 120) Define supply, demand, and equilibrium price, and explain their relationship with each other 121) Summarize the four types of competitive environments: pure competition, monopolistic competition, oligopoly, and monopoly 122) Discuss the issues involved in measuring a country's economy 123) Contrast an economic contraction with an economic expansion, in terms of spending, production levels, employment levels, and price levels 124) Why are entrepreneurs important to the economy? 125) Trace the evolution of the Canadian economy 15 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file atKey https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Answer Testname: UNTITLED1 1) FALSE 2) TRUE 3) FALSE 4) FALSE 5) FALSE 6) FALSE 7) TRUE 8) TRUE 9) FALSE 10) TRUE 11) TRUE 12) FALSE 13) FALSE 14) TRUE 15) TRUE 16) TRUE 17) TRUE 18) FALSE 19) FALSE 20) TRUE 21) TRUE 22) TRUE 23) FALSE 24) TRUE 25) TRUE 26) FALSE 27) TRUE 28) FALSE 29) FALSE 30) FALSE 31) TRUE 32) TRUE 33) FALSE 34) FALSE 35) TRUE 36) FALSE 37) TRUE 38) FALSE 39) TRUE 40) FALSE 41) TRUE 42) FALSE 43) TRUE 44) TRUE 45) TRUE 46) FALSE 47) TRUE 48) TRUE 49) FALSE 50) A 16 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file atKey https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Answer Testname: UNTITLED1 51) D 52) A 53) A 54) C 55) E 56) A 57) E 58) D 59) E 60) C 61) E 62) C 63) D 64) B 65) A 66) E 67) A 68) E 69) D 70) A 71) A 72) C 73) E 74) C 75) C 76) B 77) E 78) B 79) C 80) A 81) B 82) E 83) B 84) B 85) E 86) C 87) E 88) C 89) A 90) E 91) D 92) D 93) E 94) E 95) E 96) C 97) E 98) B 99) A 100) C 17 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file atKey https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Answer Testname: UNTITLED1 101) 102) 103) 104) 105) 106) 107) 108) 109) 110) 111) B A C E C E C E C C Answers will vary The primary goal of businesses is to earn a profit, the difference between what it costs to make and sell a product and what a customer pays for it Other business goals may include acting ethically and socially responsible 112) Answers will vary Dry cleaning, a check-up by a doctor, a performance by a hockey player–these are examples of services 113) Answers will vary Non-profits such as the Canadian Red Cross, Special Olympics, and other charities and social causes 114) Answers will vary Best Buy offers recycling of electronics at all of its stores The stores take cellphones, wide-screen TVs, an most other electronic products in their green program, regardless of where they were purchased 115) Answers will vary Management involves coordinating the efforts of employees to achieve organizational objectives Marketin involves activities designed to provide goods and services that satisfy customers Finance involves activities concerned with obtaining money–from owners and investors and other sources–and using it effectively 116) Answers will vary Marketers gather information and conduct research to determine what customers want Using information gathered from marketing research, marketers plan and develop products and make decisions about how much to charge for their products and when and where to make them available 18 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file atKey https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Answer Testname: UNTITLED1 117) Answers will vary The three economic questions are (1) What goods and services, and how much of each, will satisfy the needs of the consumer? (2) How will goods and services be produced, who will produce them, and with what resources will they be produced? (3) How are the goods and services to be distributed to the consumer? Under a true communist system, these questions are answered by a central government planning committee Under a true socialist system, central planning answers the questions for basic goods and industries, while the forces of supply and demand answer them for most of the other products Within a capitalist system, competition, supply, and demand determine the answers 118) Answers will vary Natural resources include vast supplies of fresh water, large areas of forest, nickel, copper, uranium, and large deposits of oil and natural gas Human resources include labour, referring to the physical and mental abilities that people use to produce goods and services Financial resources include the funds used to acquire the natural and human resources needed to provide products 119) Answers will vary See Table 1.1 - Comparisons of Communism, Socialism, and Capitalism 120) Answers will vary Supply is the quantity of goods or services that businesses are willing to sell at different prices at a specific time Demand is the quantity of goods or services that consumers are willing to buy at different prices at a specific time Both can be shown graphically with supply and demand curves Where the supply and demand curves intersect is the equilibrium price, the price at which the quantity of products businesses are willing to supply equals the quantity of products consumers are willing to buy at a specific point in time If economic conditions, resource availability, degree of competition, or some other factor changes either supply or demand, a new equilibrium price will be established 19 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file atKey https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Answer Testname: UNTITLED1 121) Answers will vary Pure competition exists when there are many small businesses selling one standardized product, such as agricultural commodities like wheat, corn, and cotton Monopolistic competition exists when there are fewer businesses than in a pure-competition environment and the differences among the goods they sell are small An oligopoly exists when there are very few businesses selling a product In an oligopoly, individual businesses have control over their products' price because each business supplies a large portion of the products sold in the marketplace A monopoly exists when there is one business providing a product in a given market Utility companies tha supply electricity, natural gas, and water are monopolies The government permits such monopolies because the cost of creating the good or supplying the service is so great that new producers cannot compete for sales 122) Answers will vary Countries measure the state of their economies to determine whether they are expanding or contracting and whether corrective action is necessary to minimize the fluctuations One commonly used measure is gross domestic product (GDP), the sum of all goods and services produced in a country during a year Another important indicator of a nation's economic health is the relationship between its spending and income (from taxes) 123) Answers will vary Economic contraction occurs when spending declines Businesses cut back on production and lay off workers, and the economy as a whole slows down Contractions of the economy lead to recession characterized by rising levels of unemployment Rising unemployment levels tend to stifle demand for goods and services, which can have the effect of forcing prices downward Economic expansion occurs when an economy is growing and people are spending more money Their purchases stimulate the production of goods and services, which in turn stimulates employment The standard of living rises because more people are employed and have money to spend Rapid expansions of the economy, however, may result in inflation, a continuing rise in prices 124) Answers will vary Entrepreneurs are important to the economy because they are willing to take the risks necessary to bring ideas for new goods, services, and business practices into the marketplace They bring together all the factors of production to produce new products 20 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file atKey https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell Answer Testname: UNTITLED1 125) Answers will vary The Early Economy - Before the colonization of North America, Native Americans lived as hunter/gatherer and farmers, with some trade among tribes The first major business competitors in Canada were the North West Trading Company and the Hudson Bay Company The Industrial Revolution - The nineteenth century and the Industrial Revolution brought the development of new technology and factories The factory brought together all the resources needed to make a product –materials, machines, and workers The Manufacturing and Marketing Economies - Industrialization brought increased prosperity, and many Canadians found jobs in the manufacturing economy–one devoted to manufacturing goods and providing services rather than producing agricultural products The Service and New Digital Economy - After World War II, with the increased standard of living, Canadians had more money and more time They began to pay others to perform services that made their lives easier Beginning in the 1960s, more and more women entered the workforce 21 Full file at https://TestbankDirect.eu/Test-Bank-for-Business-6th-Canadian-Edition-by-Ferrell ... https://TestbankDirect.eu /Test- Bank- for- Business- 6th- Canadian- Edition- by- Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu /Test- Bank- for- Business- 6th- Canadian- Edition- by- Ferrell. .. https://TestbankDirect.eu /Test- Bank- for- Business- 6th- Canadian- Edition- by- Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu /Test- Bank- for- Business- 6th- Canadian- Edition- by- Ferrell. .. https://TestbankDirect.eu /Test- Bank- for- Business- 6th- Canadian- Edition- by- Ferrell Test Bank for Business 6th Canadian Edition by Ferrell Full file at https://TestbankDirect.eu /Test- Bank- for- Business- 6th- Canadian- Edition- by- Ferrell