Business: A Changing World – Canadian Edition Test Bank – Complete Solution Guide

,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.acco
mplish.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.rei
nvested.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




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,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.w
orld.with.limited.resources.
Answer:. . True False

16) Natural.resources.include.land,.minerals,.water,.and.other.gifts.of.nature.which.are.not.made.by.huma
ns.
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.whil
e.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.com
munism.
Answer: True . False

20) Russia,.Poland,.Hungary,.and.other.Eastern.European.nations.have.turned.away.from.communism.and.t
oward.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.thou
sands.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.syn
onymous.with.knowledge.
Answer: True . False

24) If.free.enterprise.is.going.to.be.successful,.individuals.must.have.the.right.to.choose.what.career.to.pursu
e,.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.spec
ific.time.
Answer:. . True False

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, 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.inter
sect.
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) A.product's.equilibrium.price.is.constantly.changing.in.response.to.changes.in.economic.conditions,.avail
ability.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


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