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1) As a social institution, the economy:
a. produces and distributes goods and services.
b. guides the consumption of goods and services.
c. operates in a relatively predictable manner.
d. All of the above are correct.
Answer: d
Page Reference: 390
Skill: Factual
2) Which social institution is widely considered to have the greatest effect on society as a whole?
a. the family
b. the economy
c. the political system
d. religion
Answer: b
Page Reference: 390
Skill: Factual
3) Over the course of human history, changes in which of the following have brought the greatest changes to the economy?
a. productive technology
b. the family
c. population size
d. natural resources
Answer: a
Page Reference: 390-391
Skill: Applied
4) The text describes three technological revolutions that transformed all of social life. Which of the following is NOT one of them?
a. the Agricultural Revolution
b. the Industrial Revolution
c. the Immigration Revolution
d. the Information Revolution
Answer: c
Page Reference: 391
Skill: Factual
5) The development of agriculture was set in motion by:
a. changes in the church
b. hitching animals to the plow.
c. the discovery of writing.
d. the discovery of oil.
Answer: b
Page Reference: 391
Skill: Factual
6) The economy first became a distinct social institution during which historical era of societal development?
a. hunting and gathering societies
b. agrarian societies
c. industrial societies
d. postindustrial societies
Answer: b
Page Reference: 391
Skill: Factual
7) As societies industrialize, a smaller share of the population works in which of the following locations?
a. farms
b. factories
c. assembly lines
d. All of the above are correct
Answer: a
Page Reference: 391
Skill: Factual
8) The Industrial Revolution was based on:
a. the spread of cottage industry.
b. people beginning to work in their homes.
c. a decrease in productive specialization.
d. new sources of energy.
Answer: d
Page Reference: 391
Skill: Conceptual
9) The Industrial Revolution accelerated with the development of which of the following new sources of energy?
a. the gasoline engine
b. the steam engine
c. wind power
d. electricity
Answer: b
Page Reference: 391
Skill: Factual
10) Which of the following is NOT one of the ways that Industrialization changed the economy?
a. concentration of work into factories
b. new sources of energy
c. decreased specialization
d. wage labour
Answer: d
Page Reference: 391
Skill: Conceptual
11) The postindustrial economy is defined by:
a. the spread of factories.
b. mass production of goods and services.
c. manufacturing of raw materials.
d. service work and computer technology.
Answer: d
Page Reference: 391
Skill: Conceptual
12) Which of the following concepts refers to an economy based on computer technology?
a. postindustrial economy
b. industrial economy
c. technological economy
d. agrarian economy
Answer: a
Page Reference: 391
Skill: Conceptual
13) Which of the following statements about the Information Revolution is NOT correct?
a. There was a shift from making tangible products to generating ideas.
b. There was a shift from mechanical skills to literacy skills.
c. There was a shift from farming to turning raw materials into products
d. There was a shift from working in factories to working almost anywhere.
Answer: c
Page Reference: 391
Skill: Conceptual
14) What sector of the economy generates raw materials directly from the natural environment?
a. primary sector
b. secondary sector
c. tertiary sector
d. None of the above is correct.
Answer: a
Page Reference: 392
Skill: Conceptual
15) Turning metals into automobiles is work that falls within the:
a. primary sector.
b. secondary sector.
c. tertiary sector.
d. Any of the above would be correct.
Answer: b
Page Reference: 392
Skill: Applied
16) Looking at economies around the world, the primary sector is the largest in:
a. high-income nations
b. middle-income nations.
c. low-income nations.
d. It is the same size in all nations.
Answer: c
Page Reference: 392
Skill: Factual
17) The expansion of office work marks the growth of the economy’s
a. primary sector.
b. secondary sector.
c. tertiary sector.
d. None of the above is correct
Answer: c
Page Reference: 393
Skill: Factual
18) In Canada, about what share of the labor force performs service (tertiary) sector work?
a. 18 percent
b. 38 percent
c. 58 percent
d. 75 percent
Answer: d
Page Reference: 393
Skill: Factual
19) The concept “global economy” refers to:
a. expanding economic activity that moves across national borders.
b. the fact that only a few countries now contribute to the global economy.
c. the fact that economic output is under the control of global political leadership
d. All of the above are correct.
Answer: a
Page Reference: 393
Skill: Conceptual
20) In which Canadian province do we find the highest percentage of the labour force employed in manufacturing industries?
a. Ontario
b. Alberta
c. Manitoba
d. B.C.
Answer: a
Page Reference: 394
Skill: Factual
21) In which of the following Canadian provinces do we find the lowest percentage of the labour market employed in manufacturing industries?
a. Ontario
b. Quebec
c. Saskatchewan
d. Manitoba
Answer: c
Page Reference: 394
Skill: Factual
22) What proportion of Ontario’s labour force is employed in manufacturing industries?
a. 62
b. 41
c. 3
d. 21
Answer: d
Page Reference: 394
Skill: Factual
23) Globalization of the economy means that:
a. world regions specialize in one sector of economic activity.
b. more and more products pass through several nations.
c. a small number of businesses represent a large share of the planet’s economic output.
d. All of the above are correct.
Answer: d
Page Reference: 393-394
Skill: Factual
24) Which of the following is FALSE?
a. as a nation’s income level rises, its tertiary sector of the economy becomes smaller
b. the least developed nations have the largest primary sectors of the economy
c. the most economically developed countries have a very low percentage of their workforce in agriculture
d. in Canada, about 2/3 of the labour force performs service work
Answer: a
Page Reference: 392-393
Skill: Conceptual
25) Capitalism is an economic system in which there is:
a. government control of production.
b. private ownership of property.
c. pursuit of collective interests.
d. All of the above are correct.
Answer: b
Page Reference: 396
Skill: Conceptual
26) In a capitalist economic system, “justice” amounts to:
a. doing what is best for society’s poorest members.
b. everyone being more or less socially equal.
c. freedom of the marketplace where a person can follow self-interest.
d. All of the above are correct.
Answer: c
Page Reference: 396
Skill: Factual
27) The social thinker whose ideas most supported the operation of a free-market economy
a. Torstein Veblen.
b. Adam Smith.
c. Karl Marx.
d. Max Weber.
Answer: b
Page Reference: 396
Skill: Factual
28) Socialism is an economic system in which there is:
a. collective control of production
b. private ownership of property.
c. pursuit of individual profit.
d. All of the above are correct.
Answer: a
Page Reference: 396
Skill: Conceptual
29) Which of the following DO NOT describe the operation of a socialist economy?
a. collective orientation
b. government control of production
c. laissez-faire economy
d. command economy
Answer: c
Page Reference: 396-397
Skill: Applied
30) In a socialist economic system, “justice” amounts to:
a. trying to meet the basic needs of all in an equal manner.
b. doing whatever helps boost company earnings.
c. freedom of the marketplace.
d. All of the above are correct.
Answer: a
Page Reference: 396
Skill: Factual
31) What is the hypothetical economic and political system in which all people in society are socially equal?
a. capitalism
b. socialism
c. welfare capitalism
d. communism
Answer: d
Page Reference: 397
Skill: Conceptual
32) Which of the following concepts refers to a political and economic system that combines a mostly market-based economy with extensive social welfare programs?
a. capitalism
b. socialism
c. welfare capitalism
d. communism
Answer: c
Page Reference: 397
Skill: Conceptual
33) An example of a country with a mostly private economy and extensive social welfare programs is:
a. the United States.
b. Sweden
c. Japan.
d. Singapore.
Answer: b
Page Reference: 397
Skill: Factual
34) The concept "state capitalism" refers to a system in which:
a. the government owns and operates most economic enterprises.
b. privately-owned companies cooperate closely with the government.
c. the government owns but does not operate most economic enterprises.
d. large businesses control the government.
Answer: b
Page Reference: 397
Skill: Conceptual
35) Which of the following countries best exemplifies a system of state capitalism?
a. the United States
b. Great Britain
c. Australia
d. Japan
Answer: d
Page Reference: 397
Skill: Factual
36) Contrasted to socialist economic systems, capitalist economic systems are typically:
a. equally productive.
b. more productive.
c. less productive.
d. not concerned with productivity.
Answer: b
Page Reference: 397-398
Skill: Factual
37) Which of the following is TRUE of Tax Freedom Day in Canada and the United States?
a. Tax Freedom Day is roughly two months later in Canada than in the U.S.
b. There is no Tax Freedom Day in the U.S. as there is in Canada
c. Tax Freedom Day is roughly two months later in the U.C. than in Canada
d. Tax Freedom Day is earlier ever year in both Canada and the U.S.
Answer: a
Page Reference: 398
Skill: Factual
38) Concerning the issue of personal freedom, capitalist systems emphasize people’s _____, while socialist systems emphasize people’s _____.
a. collective needs; personal needs
b. freedom from basic want; freedom to pursue their self- interest
c. freedom to pursue their self-interest; freedom from basic want
d. social needs; material needs
Answer: c
Page Reference: 397-398
Skill: Factual
39) In Canada about what share of the population aged sixteen and older is in the paid labour force?
a. one-fifth
b. one-third
c. two-thirds
d. nine-tenths
Answer: c
Page Reference: 399
Skill: Factual
40) In Canada about what share of the population aged sixteen and older is in the paid labour force?
a. one-fifth
b. one-third
c. two-thirds
d. nine-tenths
Answer: c
Page Reference: 399
Skill: Factual
41) Which of the following groups has the lowest level of labour force participation in Canada in 2006?
a. English
b. Aboriginal
c. Chinese
d. French
Answer: b
Page Reference: 401
Skill: Factual
42) Which of the following groups has the highest level of labour force participation in Canada?
a. English
b. Aboriginal
c. Chinese
d. Blacks
Answer: a
Page Reference: 401
Skill: Factual
43) Over the course of the last century, the number of people involved in agricultural work:
a. has remained about the same.
b. has declined steadily.
c. has increased dramatically.
d. has stayed the same, although a larger share of workers is immigrants.
Answer: b
Page Reference: 401
Skill: Factual
44) By about 1950, most of the people in the Canadian labor force had which type of jobs?
a. white-collar
b. blue-collar
c. pink-collar
d. farming
Answer: a
Page Reference: 401
Skill: Factual
45) Today one farmer can feed how many people?
a. 5
b. 14
c. 75
d. 10,000
Answer: c
Page Reference: 401
Skill: Factual
46) The concept "primary labour market" refers to:
a. jobs that provide extensive benefits to workers
b. jobs typically taken by teenagers.
c. jobs that require no particular training or experience.
d. jobs that offer little pay and low security.
Answer: a
Page Reference: 401
Skill: Conceptual
47) In recent decades, union membership:
a. has risen in Canada and other high-income nations.
b. has risen in Canada but not in other high-income nations.
c. has declined in Canada but not in other high-income nations has been stable in Canada at just over 1/3 of the labour force.
d. has been stable in Canada at just over 1/3 of the labour force.
Answer: d
Page Reference: 402
Skill: Factual
48) Read the four descriptions below. Which of them DOES NOT apply to a profession?
a. having theoretical knowledge of a field
b. working for a large, well-established company
c. having authority over clients
d. professing a community rather than individual orientation
Answer: b
Page Reference: 402
Skill: Applied
49) What percentage of today's English Canadian workers are self-employed?
a. 15 percent
b. 27.3 percent
c. 47.3 percent
d. 67.3 percent
Answer: a
Page Reference: 403-404
Skill: Factual
50) Which of the following would be included in the operation of the underground economy?
a. a teacher who is on disability leave for a long time
b. an executive who illegally “borrows” funds from the company
c. a taxi driver who fails to report most of her income
d. food servers who are paid less than the minimum wage
Answer: c
Page Reference: 408
Skill: Conceptual
51) ______________ is economic activity involving income or the exchange of goods and services that is not reported to the government.
a. socialism
b. underground economy
c. state capitalism
d. conglomerate
Answer: b
Page Reference: 408
Skill: Conceptual
52) Computers are having which of the following effects on the workplace?
a. Computers are deskilling labour.
b. Computers are limiting workplace interaction.
c. Computers enhance employer’s control of workers.
d. All of the above are correct.
Answer: d
Page Reference: 408
Skill: Factual
53) A conglomerate is:
a. a giant corporation composed of many smaller corporations
b. a corporation in the manufacturing sector.
c. a corporation engaged in both legal and illegal activity.
d. any company that completely dominates a market.
Answer: a
Page Reference: 410
Skill: Conceptual
54) Modernization theorists see large corporations as:
a. offering little to poor nations seeking to develop.
b. unleashing the productive power of capitalism to speed development in poor nations.
c. responsible for the debt crisis in many poor nations.
d. needing the technology currently available in poor nations.
Answer: b
Page Reference: 411
Skill: Factual
55) Dependency theorists see large corporations as:
a. the key to meeting the needs of people in poor nations.
b. helping poor nations to develop local industries.
c. a major source of foreign investment for poor nations
d. intensifying global inequality.
Answer: d
Page Reference: 411-412
Skill: Factual
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