Question 1

Desires for things that can be obtained by labor or through exchange are called:

Accepted Answer

A)  economic goods. 
B)  economic artifacts. 
C)  economic losses. 
D)  economic wants. 
A)  economic goods. 
B)  economic artifacts. 
C)  economic losses. 
D)  economic wants. D

Question 2

Which of the following is an example of a country with a planned economy?

Accepted Answer

A)  China. 
B)  The Russian Federation. 
C)  Britain. 
D)  The United States. 
A)  China. 
B)  The Russian Federation. 
C)  Britain. 
D)  The United States. A

Question 3

Determining the resources that are to be allocated to a good's output is one of the functions of an economy.

Accepted Answer

A) True 
 B)False  True

Question 4

Adam Smith argued that people's needs were met by the market because people were:

Accepted Answer

A)  generous. 
B)  selfish. 
C)  concerned about the welfare of others. 
D)  caring. 
A)  generous. 
B)  selfish. 
C)  concerned about the welfare of others. 
D)  caring.

Question 5

Economic goods are the things that money can buy and that are the objects of our economic wants.

Accepted Answer

A) True 
 B)False

Question 6

Adam Smith argued that economic freedom would lead to chaos.

Accepted Answer

A) True 
 B)False

Question 7

Wealth is what we call:

Accepted Answer

A)  material economic goods. 
B)  the material and nonmaterial items of our culture. 
C)  the services we desire. 
D)  the economic goods we cannot see or feel. 
A)  material economic goods. 
B)  the material and nonmaterial items of our culture. 
C)  the services we desire. 
D)  the economic goods we cannot see or feel.

Question 8

Soviet-style socialism was abandoned because:

Accepted Answer

A)  Soviet-style economies delivered too many goods. 
B)  new technologies gave the Soviet-style economies an advantage. 
C)  a strong national consensus was maintained by the economy. 
D)  socialist economies were significantly lagging behind capitalist economies. 
A)  Soviet-style economies delivered too many goods. 
B)  new technologies gave the Soviet-style economies an advantage. 
C)  a strong national consensus was maintained by the economy. 
D)  socialist economies were significantly lagging behind capitalist economies.

Question 9

All productive resources-labor, natural resources, and capital-are limited.

Accepted Answer

A) True 
 B)False

Question 10

Major technological breakthroughs in the development of computers increased supply and quality. In response, prices of computers:

Accepted Answer

A)  varied too widely for a price pattern to emerge. 
B)  increased until computers were too expensive to buy. 
C)  fell. 
D)  rose slightly. 
A)  varied too widely for a price pattern to emerge. 
B)  increased until computers were too expensive to buy. 
C)  fell. 
D)  rose slightly.

Question 11

Equilibrium price is the price:

Accepted Answer

A)  on which buyers and sellers cannot agree. 
B)  at which demand exactly equals supply. 
C)  that everyone thinks is too high. 
D)  that the state determines for the good of all. 
A)  on which buyers and sellers cannot agree. 
B)  at which demand exactly equals supply. 
C)  that everyone thinks is too high. 
D)  that the state determines for the good of all.

Question 12

Economics is the study of the social organization through which people satisfy their wants.

Accepted Answer

A) True 
 B)False

Question 13

Economic goods have monetary value because they are desirable and scarce.

Accepted Answer

A) True 
 B)False

Question 14

All modern economies, whatever their history, have evolved into:

Accepted Answer

A)  macroeconomic structures. 
B)  microeconomic structures. 
C)  pragmatic market economies. 
D)  transcendental market economies. 
A)  macroeconomic structures. 
B)  microeconomic structures. 
C)  pragmatic market economies. 
D)  transcendental market economies.

Question 15

Karl Marx and Friedrich Engels argued for a new form of economic organization called:

Accepted Answer

A)  capitalism. 
B)  communism. 
C)  free-market economics. 
D)  private property economics. 
A)  capitalism. 
B)  communism. 
C)  free-market economics. 
D)  private property economics.

Question 16

Communism is another name for socialism.

Accepted Answer

A) True 
 B)False

Question 17

Communism refers to a state in which:

Accepted Answer

A)  the means of production are held by cooperative groups of citizens. 
B)  all citizens are economically and socially equal. 
C)  the Communist Party determines society's goals. 
D)  the Communist Party runs the government but not the economy. 
A)  the means of production are held by cooperative groups of citizens. 
B)  all citizens are economically and socially equal. 
C)  the Communist Party determines society's goals. 
D)  the Communist Party runs the government but not the economy.

Question 18

Karl Marx had much to say about how a communist economy would operate.

Accepted Answer

A) True 
 B)False

Question 19

How does a market economy work? What is the role of government in market economies? Why are the principles of supply and demand important?

Accepted Answer

A market economy relies on the initiativ

Question 20

The "standard/great" economic problem will become a major issue only after the "other" economic problem is solved.

Accepted Answer

A) True 
 B)False

Exam 17: The Organization of Economic Activities

Desires for things that can be obtained by labor or through exchange are called:

Which of the following is an example of a country with a planned economy?

Determining the resources that are to be allocated to a good's output is one of the functions of an economy.

Adam Smith argued that people's needs were met by the market because people were:

Economic goods are the things that money can buy and that are the objects of our economic wants.

Adam Smith argued that economic freedom would lead to chaos.

Wealth is what we call:

Soviet-style socialism was abandoned because:

All productive resources-labor, natural resources, and capital-are limited.

Major technological breakthroughs in the development of computers increased supply and quality. In response, prices of computers:

Equilibrium price is the price:

Economics is the study of the social organization through which people satisfy their wants.

Economic goods have monetary value because they are desirable and scarce.

All modern economies, whatever their history, have evolved into:

Karl Marx and Friedrich Engels argued for a new form of economic organization called:

Communism is another name for socialism.

Communism refers to a state in which:

Karl Marx had much to say about how a communist economy would operate.

How does a market economy work? What is the role of government in market economies? Why are the principles of supply and demand important?

The "standard/great" economic problem will become a major issue only after the "other" economic problem is solved.

Social Science and Its Methods

Human Origins

Origins of Western Society

Society, Culture, and Cultural Change

Geography, Demography, Ecology, and Society

Technology and Society

Psychology, Society, and Culture

Deviance, Crime, and Society

The Family

Religion

Education

Social and Economic Stratification

Stratification, Minorities, and Discrimination

The Functions and Forms of Government

Governments of the World

Democratic Government in the United States

The Economy, Government, and Economic Challenges Facing the United States

International Political Relations

International Economic Relations

The Political Economies of Developing Countries

International Institutions and the Search for Peace

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