MGMT 1000 MIDTERM 1 QUESTIONS
WITH VERIFIED ANSWERS
\Q\.What is a business? - ANSWER-✔An organization that seeks to earn profit by providing
goods and services
\Q\.Profit is what remains after a business's ______ have been subtracted from its ______ -
ANSWER-✔revenues; expenses
\Q\.Profit is important to business owners because _______________ - ANSWER-✔motivation
for risking time and money
\Q\.The way in which a nation allocates its resources among its citizens is determined by its
_______________ - ANSWER-✔economic system
\Q\.A(n) ______ is an individual who organizes and manages labour, capital, and natural
resources to produce goods and services but also runs the risk of failure. - ANSWER-
✔entrepreneur
\Q\.Both ______ and ______ are considered command economies. - ANSWER-✔socialism;
communism
\Q\.In a _____ economy, B2B (business to business) and B2C (business to consumers) exchanges
take place without much government involvement. - ANSWER-✔market
\Q\.The Canadian Radio-television and Telecommunications Commission is a ______ - ANSWER-
✔regulatory agency
,\Q\.Total government expenditures in 2013 were $235.3 billion. This exemplifies which role of
the government in the Canadian economy? - ANSWER-✔Customer
\Q\.Which of the following is designed to promote healthy competition among business firms in
Canada? - ANSWER-✔The Competition Act
\Q\.The Food and Drug Act is an example of a piece of legislation that _______ - ANSWER-
✔protects consumers
\Q\.______ are taxes that cause poorer people to pay a higher percentage of income than richer
people do. - ANSWER-✔Regressive revenue taxes
\Q\.Sales taxes are an example of ___________. - ANSWER-✔regressive revenue taxes
\Q\.______ is a mechanism for exchange between buyers and sellers. - ANSWER-✔A market
\Q\.The ______ is the principle that buyers will purchase more of a product as its price drops. -
ANSWER-✔law of demand
\Q\.The equilibrium price is also called the ______. - ANSWER-✔market price
\Q\.Market equilibrium is determined by the _________. - ANSWER-✔intersection of the
demand curve and the supply curve
\Q\.The situation is which quantity supplied exceeds quantity demanded in a market is
described as ________. - ANSWER-✔a surplus
, \Q\.Competition is best described as __________________. - ANSWER-✔private enterprise
\Q\.One characteristic of ___________ is that the going price is set exclusively by supply and
demand and is accepted by both seller and buyer. - ANSWER-✔perfect competition
\Q\.A market or industry characterized by a small number of very large firms that avoid direct
price competition is described as _______________. - ANSWER-✔an oligopoly
\Q\.Canadian agriculture provides a good example of an industry in which there exists
________. - ANSWER-✔perfect competition
\Q\.Fast-food restaurants in Canada compete under which kind of competitive conditions? -
ANSWER-✔Monopolistic competition
\Q\.In Canada, laws such as the Competition Act forbid ______________. - ANSWER-
✔monopolies
\Q\.During the 10 years after it was made a Crown corporation, Canada Post raised rates by 41
percent. This behaviour suggests that Canada Post was acting as a(n) _________. - ANSWER-
✔monopoly
\Q\.The ______ is everything outside an organization's boundaries that might affect it. -
ANSWER-✔external environment
\Q\.An organizational boundary _____________. - ANSWER-✔separates the organization from
its environment
WITH VERIFIED ANSWERS
\Q\.What is a business? - ANSWER-✔An organization that seeks to earn profit by providing
goods and services
\Q\.Profit is what remains after a business's ______ have been subtracted from its ______ -
ANSWER-✔revenues; expenses
\Q\.Profit is important to business owners because _______________ - ANSWER-✔motivation
for risking time and money
\Q\.The way in which a nation allocates its resources among its citizens is determined by its
_______________ - ANSWER-✔economic system
\Q\.A(n) ______ is an individual who organizes and manages labour, capital, and natural
resources to produce goods and services but also runs the risk of failure. - ANSWER-
✔entrepreneur
\Q\.Both ______ and ______ are considered command economies. - ANSWER-✔socialism;
communism
\Q\.In a _____ economy, B2B (business to business) and B2C (business to consumers) exchanges
take place without much government involvement. - ANSWER-✔market
\Q\.The Canadian Radio-television and Telecommunications Commission is a ______ - ANSWER-
✔regulatory agency
,\Q\.Total government expenditures in 2013 were $235.3 billion. This exemplifies which role of
the government in the Canadian economy? - ANSWER-✔Customer
\Q\.Which of the following is designed to promote healthy competition among business firms in
Canada? - ANSWER-✔The Competition Act
\Q\.The Food and Drug Act is an example of a piece of legislation that _______ - ANSWER-
✔protects consumers
\Q\.______ are taxes that cause poorer people to pay a higher percentage of income than richer
people do. - ANSWER-✔Regressive revenue taxes
\Q\.Sales taxes are an example of ___________. - ANSWER-✔regressive revenue taxes
\Q\.______ is a mechanism for exchange between buyers and sellers. - ANSWER-✔A market
\Q\.The ______ is the principle that buyers will purchase more of a product as its price drops. -
ANSWER-✔law of demand
\Q\.The equilibrium price is also called the ______. - ANSWER-✔market price
\Q\.Market equilibrium is determined by the _________. - ANSWER-✔intersection of the
demand curve and the supply curve
\Q\.The situation is which quantity supplied exceeds quantity demanded in a market is
described as ________. - ANSWER-✔a surplus
, \Q\.Competition is best described as __________________. - ANSWER-✔private enterprise
\Q\.One characteristic of ___________ is that the going price is set exclusively by supply and
demand and is accepted by both seller and buyer. - ANSWER-✔perfect competition
\Q\.A market or industry characterized by a small number of very large firms that avoid direct
price competition is described as _______________. - ANSWER-✔an oligopoly
\Q\.Canadian agriculture provides a good example of an industry in which there exists
________. - ANSWER-✔perfect competition
\Q\.Fast-food restaurants in Canada compete under which kind of competitive conditions? -
ANSWER-✔Monopolistic competition
\Q\.In Canada, laws such as the Competition Act forbid ______________. - ANSWER-
✔monopolies
\Q\.During the 10 years after it was made a Crown corporation, Canada Post raised rates by 41
percent. This behaviour suggests that Canada Post was acting as a(n) _________. - ANSWER-
✔monopoly
\Q\.The ______ is everything outside an organization's boundaries that might affect it. -
ANSWER-✔external environment
\Q\.An organizational boundary _____________. - ANSWER-✔separates the organization from
its environment
