What is the relationship between the following 2 interest rates?

Bank Rate roughly 2% lower than Prime Rate

higher interest rates

decreases borrowing and lowers consumption

Sum total of all Buyers and sellers in an area or region

which is not sometimes a criticism of Globalization?

it helps small domestic businesses challenge big companies

A natural monopoly is a situation in which:

efficient production with high startup costs = no comp

Which of the following does not describe an oligopoly

Companies work together to control prices

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Markets Test Review (unit 3)

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Unit 3 review Mr. Perrin

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Questions 24

Answers

1
One years interest on a 2000 dollar loan at 5% would total
50
100
200
10
2
What is the relationship between the following 2 interest rates?
Bank Rate roughly 1% lower than Prime Rate
Bank Rate roughly 2% lower than Prime Rate
Prime Rate roughly 2% lower than Bank Rate
Bank Rate roughly 2% higher than Prime Rate
3
Perfect competition occurs in a market where there are many firms each selling:
a competitive product
a similar product
an unique product
an identical product
4
Who sets the bank rate?
RBC
The bank of Canada
Large Banks
The market
5
higher interest rates
Increase borrowing and lowers consumption
decreases borrowing and lowers consumption
Increases credit card use and decreases consumption
decreases borrowing and increases consumption
6
What is the affect of increased interest rates on Aggregate Demand?
Curve doesn't shift, but point along curve moves
Curve shifts to the left
Curve Shifts to the right
Curve doesn't shift at all
7
Which of the following concepts can affect the business cycle?
Investment in business
Consumer expectations
New trade agreements
All of the above
8
Globalization has led to a vast expansion in the size of the global economy
False
True
9
market structure describe by marketing campaigns and giveaways, with lots of competition
Monopoly
monopolistic competition
perfect competition
Oligopoly
10
Canada's prime rate is rougly what %
2.5%
3.5%
1.5%
4.5%
11
What is a market?
Sum total of all Buyers and sellers in an area or region
Sum total of all goods and services in an area or region
Sum total of all Buyers and consumers in an area or region
The sum total of all Sellers and stores in an area or region
12
which of the following does not help prevent instability
decreasing lending regulations
Decreasing amount you can lend out compared to down payment
willingness to act on asset price inflation
strict lending requirements
13
Elastic products have what effect on total revenue when price is increased
Total revenue increases
Total revenue Decreases
14
which is not sometimes a criticism of Globalization?
It can cause jobs to move to cheaper labour countries
It can be described as a new form of colonialism
it helps small domestic businesses challenge big companies
it can weaken local firms by exposing them to increase comp.
15
refusing to take a new job with a higher salary might be caused by
social norms
uncertainty
Framing effect
anchoring effect
16
Which do people often struggle to find the best deal on a used toyota corolla?
Increased Choice
Anchoring effect
Social Norms
Uncertainty
17
Which of the following is the most illiquid asset?
Currency
A house
Gold
Bitcoin
18
Decreasing interest rates increase peoples buying power for goods and services such as housing
false
true
19
"Process of building up Vapital stock of country or company to make new goods and services"
Monetary expansion
Capital creation
Globalization
Capital formation
20
Which of the following is NOT a function of money
Source of Heat
Store of Value
Standard of value for all G&S we might wish to trade
Medium of Exchange ( virtually everyone accepts as payment)
21
Economic instability itself breeds stability
False
True
22
Proceeding with a land deal after spending $50 thousand on planning might be influenced by
Sunk Costs
Social Norms
Framing effect
Increased choice
23
A natural monopoly is a situation in which:
the market is a small town or region
Government owned business
A new invention allows for a monopoly
efficient production with high startup costs = no comp
24
Which of the following does not describe an oligopoly
often telecommunication industry
few large companies dominate market
Companies work together to control prices
companies engage in price wars

Markets Test Review (unit 3) Flashcards | StudBud