SGMA 217 Midterm 1 Exam Questions and
Correct Answers
Question 1
Structural unemployment
Correct Answer
Caused by a mismatch between available jobs and the skills of available workers in
an industry or region
Question 2
Crowding Out
Correct Answer
Situation that occurs when government spending replaces spending by the private
sector
Question 3
Pyramid of corporate social responsibility levels starting from base
Correct Answer
1. Economic responsibilities
2. Legal responsibilities
3. Ethical responsibilities
4. Philanthropic responsibilities
Question 4
Standard of Living
Correct Answer
Measurement of outputs of products (private and public) that people can buy with
money they have
Page 1 of 104
,Question 5
Corporate governance
Correct Answer
The way in which an organization is governed, directed, and administered. The
board of directions is responsible for the organization being managed in the best
interest for the corporation
Question 6
Provincial Government responsibilities
Correct Answer
Administration of labour laws, education, health, protection of property and civil
rights, natural resources, environment
Question 7
Market structure
Correct Answer
Number of suppliers in a market
Question 8
Chief Information Officer (CIO)
Correct Answer
An executive responsible for managing all information resources and processes in
an organization.
Question 9
Mixed economies
Correct Answer
Economies that combine several economic systems for ex an economy in which the
gov owns certain industries but the private sector owns other s
Page 2 of 104
,Question 10
Stakeholders
Correct Answer
Any person or organization with a vested interest or to whom the company has a
responsibility
Question 11
Socialism
Correct Answer
Basic industries are owned either by the government or by the private sector under
strong government control
Question 12
Transfer Payments
Correct Answer
Payments made to provinces and territories by the federal government to help to
deliver required services and to help equalize the wealth across Canada
Question 13
Exporting
Correct Answer
Sell domestically produced products to buyers in other countries
Question 14
Trade Deficit
Correct Answer
An unfavorable balance of trade that occurs when a country imports more than it
exports
Page 3 of 104
, Question 15
Global vision
Correct Answer
The ability to recognize and react to international business opportunities, be aware
of threats from foreign competition and effectively use international distribution
networks to obtain raw materials and move finished products to customers
Question 16
Ethical responsibilities
Correct Answer
A corporation can turn its attention to ethical matters only after ensuring its
economic and legal position
Question 17
Governments other roles
Correct Answer
Taxation agent, regulator, provider of essential services and incentives, customer,
competitor
Question 18
Baby boomers
Correct Answer
Canadians born between 1946 and 1964
Question 19
Cost push inflation
Correct Answer
Inflation that occurs when increases in production costs push up the prices of final
goods and services
Page 4 of 104
Correct Answers
Question 1
Structural unemployment
Correct Answer
Caused by a mismatch between available jobs and the skills of available workers in
an industry or region
Question 2
Crowding Out
Correct Answer
Situation that occurs when government spending replaces spending by the private
sector
Question 3
Pyramid of corporate social responsibility levels starting from base
Correct Answer
1. Economic responsibilities
2. Legal responsibilities
3. Ethical responsibilities
4. Philanthropic responsibilities
Question 4
Standard of Living
Correct Answer
Measurement of outputs of products (private and public) that people can buy with
money they have
Page 1 of 104
,Question 5
Corporate governance
Correct Answer
The way in which an organization is governed, directed, and administered. The
board of directions is responsible for the organization being managed in the best
interest for the corporation
Question 6
Provincial Government responsibilities
Correct Answer
Administration of labour laws, education, health, protection of property and civil
rights, natural resources, environment
Question 7
Market structure
Correct Answer
Number of suppliers in a market
Question 8
Chief Information Officer (CIO)
Correct Answer
An executive responsible for managing all information resources and processes in
an organization.
Question 9
Mixed economies
Correct Answer
Economies that combine several economic systems for ex an economy in which the
gov owns certain industries but the private sector owns other s
Page 2 of 104
,Question 10
Stakeholders
Correct Answer
Any person or organization with a vested interest or to whom the company has a
responsibility
Question 11
Socialism
Correct Answer
Basic industries are owned either by the government or by the private sector under
strong government control
Question 12
Transfer Payments
Correct Answer
Payments made to provinces and territories by the federal government to help to
deliver required services and to help equalize the wealth across Canada
Question 13
Exporting
Correct Answer
Sell domestically produced products to buyers in other countries
Question 14
Trade Deficit
Correct Answer
An unfavorable balance of trade that occurs when a country imports more than it
exports
Page 3 of 104
, Question 15
Global vision
Correct Answer
The ability to recognize and react to international business opportunities, be aware
of threats from foreign competition and effectively use international distribution
networks to obtain raw materials and move finished products to customers
Question 16
Ethical responsibilities
Correct Answer
A corporation can turn its attention to ethical matters only after ensuring its
economic and legal position
Question 17
Governments other roles
Correct Answer
Taxation agent, regulator, provider of essential services and incentives, customer,
competitor
Question 18
Baby boomers
Correct Answer
Canadians born between 1946 and 1964
Question 19
Cost push inflation
Correct Answer
Inflation that occurs when increases in production costs push up the prices of final
goods and services
Page 4 of 104
