,TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) Products have tangible attributes only.
Answer: True False
2) The goal of business activities is to earn a profit.
Answer: True False
3) Non-profit organizations, such as the Canadian Red Cross, do not have to engage in management,
marketing, or finance activities.
Answer: True False
4) Organizations such as the Special Olympics have two fundamental purposes: to earn a profit and to
accomplish social objectives.
Answer: True False
5) Profit is what it costs to make and sell a product.
Answer: True False
6) Businesses have the right to keep and use their profits as they choose, without limitations.
Answer: True False
7) Earning profits contributes to society by providing employment, which in turn provides money that
is reinvested in the economy.
Answer: True False
8) Finance is concerned with obtaining money and using it effectively.
Answer: True False
9) Owners have little responsibility to provide funds for the operation of the business.
Answer: True False
10) Managers coordinate resources to achieve organizational objectives.
Answer: True False
11) The focus of all marketing activities is customer satisfaction.
Answer: True False
12) Owners always manage their businesses themselves.
Answer: True False
13) Studying 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.
Answer: True False
1
,14) One of the best-known Canadian marketing initiatives of all time is Tim Hortons' "Roll Up the Rim
to Win" campaign.
Answer: True False
15) A central issue of economics is how to fulfill consumers' unlimited demand for goods and services
in a world with limited resources.
Answer: True False
16) Naturalresources include land, minerals, water, and other gifts of nature which are not made by
humans.
Answer: True False
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.
Answer: True False
18) Capitalism is an economic system in which the government owns and operates basic industries
while individuals own most other businesses.
Answer: True False
19) China
is an example of a communist economy that exists today which satisfies Karl Marx's ideal of
communism.
Answer: True False
20) Russia,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.
Answer: True False
21) The Chinese state is the largest shareholder among China's largest companies and influences
thousands of other businesses.
Answer: True False
22) Most socialist nations are democratic.
Answer: True False
23) Human resources refer only to the mental abilities of people used to produce goods and services; it
is synonymous with knowledge.
Answer: True False
24) Iffree 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.
Answer: True False
25) Demand is the quantity of goods and services that consumers are willing to buy at different prices at
a specific time.
Answer: True False
2
, 26) The demand curve is upward sloping.
Answer: True False
27) The equilibrium price is represented by the point where a product's supply and demand curves
intersect.
Answer: True False
28) Monopolistic competition exists when there is only one producer of a product in a given market.
Answer: True False
29) An oligopoly exists when there are many small businesses selling one standardized product.
Answer: True False
30) Government-granted monopolies are not subject to government-regulated prices.
Answer: True False
31) Aproduct's equilibrium price is constantly changing in response to changes in economic conditions,
availability of resources, and degree of competition.
Answer: True False
32) Economic expansion occurs when an economy is growing and people are spending more money.
Answer: True False
33) The standard of living rises because people have less money to spend.
Answer: True False
34) Inflation is a condition characterized by falling prices.
Answer: True False
35) A severe recession may turn into a depression.
Answer: True False
36) During a recession, unemployment is unusually low.
Answer: True False
37) Gross domestic product is the sum of all goods and services produced in a country during a year.
Answer: True False
38) Since 1997, it has been common policy for the government of Canada to run large budget deficits.
Answer: True False
39) Canada has had a positive trade balance for much of the last decade.
Answer: True False
40) When a nation collects more from taxes than it spends, it has a budget deficit.
Answer: True False
3
1) Products have tangible attributes only.
Answer: True False
2) The goal of business activities is to earn a profit.
Answer: True False
3) Non-profit organizations, such as the Canadian Red Cross, do not have to engage in management,
marketing, or finance activities.
Answer: True False
4) Organizations such as the Special Olympics have two fundamental purposes: to earn a profit and to
accomplish social objectives.
Answer: True False
5) Profit is what it costs to make and sell a product.
Answer: True False
6) Businesses have the right to keep and use their profits as they choose, without limitations.
Answer: True False
7) Earning profits contributes to society by providing employment, which in turn provides money that
is reinvested in the economy.
Answer: True False
8) Finance is concerned with obtaining money and using it effectively.
Answer: True False
9) Owners have little responsibility to provide funds for the operation of the business.
Answer: True False
10) Managers coordinate resources to achieve organizational objectives.
Answer: True False
11) The focus of all marketing activities is customer satisfaction.
Answer: True False
12) Owners always manage their businesses themselves.
Answer: True False
13) Studying 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.
Answer: True False
1
,14) One of the best-known Canadian marketing initiatives of all time is Tim Hortons' "Roll Up the Rim
to Win" campaign.
Answer: True False
15) A central issue of economics is how to fulfill consumers' unlimited demand for goods and services
in a world with limited resources.
Answer: True False
16) Naturalresources include land, minerals, water, and other gifts of nature which are not made by
humans.
Answer: True False
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.
Answer: True False
18) Capitalism is an economic system in which the government owns and operates basic industries
while individuals own most other businesses.
Answer: True False
19) China
is an example of a communist economy that exists today which satisfies Karl Marx's ideal of
communism.
Answer: True False
20) Russia,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.
Answer: True False
21) The Chinese state is the largest shareholder among China's largest companies and influences
thousands of other businesses.
Answer: True False
22) Most socialist nations are democratic.
Answer: True False
23) Human resources refer only to the mental abilities of people used to produce goods and services; it
is synonymous with knowledge.
Answer: True False
24) Iffree 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.
Answer: True False
25) Demand is the quantity of goods and services that consumers are willing to buy at different prices at
a specific time.
Answer: True False
2
, 26) The demand curve is upward sloping.
Answer: True False
27) The equilibrium price is represented by the point where a product's supply and demand curves
intersect.
Answer: True False
28) Monopolistic competition exists when there is only one producer of a product in a given market.
Answer: True False
29) An oligopoly exists when there are many small businesses selling one standardized product.
Answer: True False
30) Government-granted monopolies are not subject to government-regulated prices.
Answer: True False
31) Aproduct's equilibrium price is constantly changing in response to changes in economic conditions,
availability of resources, and degree of competition.
Answer: True False
32) Economic expansion occurs when an economy is growing and people are spending more money.
Answer: True False
33) The standard of living rises because people have less money to spend.
Answer: True False
34) Inflation is a condition characterized by falling prices.
Answer: True False
35) A severe recession may turn into a depression.
Answer: True False
36) During a recession, unemployment is unusually low.
Answer: True False
37) Gross domestic product is the sum of all goods and services produced in a country during a year.
Answer: True False
38) Since 1997, it has been common policy for the government of Canada to run large budget deficits.
Answer: True False
39) Canada has had a positive trade balance for much of the last decade.
Answer: True False
40) When a nation collects more from taxes than it spends, it has a budget deficit.
Answer: True False
3
