Question 1

The role of _______ in the production process is central to why our country is rich and most of the rest of the world is poor.

Accepted Answer

A) Labor 
B) Land 
C) Capital 
D) Government 
A) Labor 
B) Land 
C) Capital 
D) Government

Question 2

In theory,___________ advocates the abolition of private property.

Accepted Answer

A) Capitalism 
B) Communism 
C) Socialism 
D) Fascism 
A) Capitalism 
B) Communism 
C) Socialism 
D) Fascism

Question 3

Under communism,_____________ owns and operates most of the means of production and distribution.

Accepted Answer

The answer of Under communism,_____________ owns and operates most of...

Question 4

Which statement most closely reflects the viewpoint of Karl Marx?

Accepted Answer

A) Whoever controls a society's capital controls that society. 
B) By pursuing his own interest,a business owner frequently promotes that of the society more effectually than when he really intends to promote it. 
C) The capitalist,who has saved for years to buy his machinery and factory is entitled to all the profits he earns. 
D) The worker and the capitalist are both exploited by the government. 
A) Whoever controls a society's capital controls that society. 
B) By pursuing his own interest,a business owner frequently promotes that of the society more effectually than when he really intends to promote it. 
C) The capitalist,who has saved for years to buy his machinery and factory is entitled to all the profits he earns. 
D) The worker and the capitalist are both exploited by the government.

Question 5

Statement I.In the United States,the economic role of the government is played almost entirely at the federal level.
Statement II.The outcomes of each of the three basic economic questions are affected by government actions.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 6

Externalities may be internalized by

Accepted Answer

A) government-imposed taxes and subsidies. 
B) regulation. 
C) legal rules and procedures. 
D) bargaining and negotiation. 
E) All of the choices are correct. 
A) government-imposed taxes and subsidies. 
B) regulation. 
C) legal rules and procedures. 
D) bargaining and negotiation. 
E) All of the choices are correct.

Question 7

Statement I: It is the role of government to ensure that property rights are protected,but not to interfere with minimizing any unpleasant side effects from pollution.
Statement II: The U.S.government must provide the infrastructure for a market system to function efficiently.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 8

Karl Marx

Accepted Answer

A) believed that the state would eventually "wither away." 
B) wrote Das Kapital. 
C) believed that the factory owner,by paying his workers meager wages,was able to use this surplus to buy more capital goods. 
D) said whoever controlled a society's capital controlled that society. 
E) all of the statements about Karl Marx are true. 
A) believed that the state would eventually "wither away." 
B) wrote Das Kapital. 
C) believed that the factory owner,by paying his workers meager wages,was able to use this surplus to buy more capital goods. 
D) said whoever controlled a society's capital controlled that society. 
E) all of the statements about Karl Marx are true.

Question 9

In a centrally planned economy

Accepted Answer

A) consumers do not have to consider prices when shopping. 
B) prices are zero. 
C) the government sets prices and decides how much of each good is to be produced. 
D) producers have an incentive to produce those goods most desired by consumers at the lowest cost. 
A) consumers do not have to consider prices when shopping. 
B) prices are zero. 
C) the government sets prices and decides how much of each good is to be produced. 
D) producers have an incentive to produce those goods most desired by consumers at the lowest cost.

Question 10

Karl Marx believed in which of the following?

Accepted Answer

A) Controlling political power was more important than controlling the ownership of capital with respect to dominating a society. 
B) In capitalist societies,a business owner makes huge profits by raising workers wages. 
C) Whoever controlled a society's labor supply controlled that society. 
D) Inevitably there would be a clash between capitalists and workers. 
A) Controlling political power was more important than controlling the ownership of capital with respect to dominating a society. 
B) In capitalist societies,a business owner makes huge profits by raising workers wages. 
C) Whoever controlled a society's labor supply controlled that society. 
D) Inevitably there would be a clash between capitalists and workers.

Question 11

About ______ percent of China's population lives in rural areas.

Accepted Answer

A) 5 
B) 25 
C) 50 
D) 67 
A) 5 
B) 25 
C) 50 
D) 67

Question 12

Which does not fit with the others?

Accepted Answer

A) Competition 
B) Government planning and regulation 
C) The invisible hand 
D) The price mechanism 
A) Competition 
B) Government planning and regulation 
C) The invisible hand 
D) The price mechanism

Question 13

A public good is

Accepted Answer

A) a good deed done by someone who refuses payment. 
B) something produced as sold by the government,for example,electricity provided by the Tennessee Valley Authority. 
C) something whose consumption by one person does not prevent its consumption by other people. 
D) something that is good for our country,but not necessarily for private individuals. 
A) a good deed done by someone who refuses payment. 
B) something produced as sold by the government,for example,electricity provided by the Tennessee Valley Authority. 
C) something whose consumption by one person does not prevent its consumption by other people. 
D) something that is good for our country,but not necessarily for private individuals.

Question 14

Statement I: External costs are market failures,but external benefits are not.
Statement II: The U.S.government provides the legal system under which our free enterprise economy can operate.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 15

When the government determines the permissible level of pollution and issues permits to each polluting firm,this is a form of

Accepted Answer

A) incentive-based regulation. 
B) command-and-control regulation. 
C) tax on pollution. 
D) government barrier to the workings of demand and supply. 
A) incentive-based regulation. 
B) command-and-control regulation. 
C) tax on pollution. 
D) government barrier to the workings of demand and supply.

Question 16

Which statement is false?

Accepted Answer

A) Throughout the 1980s,the Soviet Union devoted most of its capital and talent to its military establishment rather than to market reform. 
B) In the late 1970s,China began reforms,which eventually transformed it to a more market-oriented economy. 
C) Russia has been more successful than China in becoming a market-oriented economy. 
D) None of the above statements are false. 
A) Throughout the 1980s,the Soviet Union devoted most of its capital and talent to its military establishment rather than to market reform. 
B) In the late 1970s,China began reforms,which eventually transformed it to a more market-oriented economy. 
C) Russia has been more successful than China in becoming a market-oriented economy. 
D) None of the above statements are false.

Question 17

Which of the following statements is not true?

Accepted Answer

A) Our government alters how resources are allocated in the economy by taxing,spending and issuing regulations. 
B) The price mechanism will work best if there are a limited number of firms in each industry. 
C) Lack of the provision of public goods is considered a market failure. 
D) Not everything produced by the public sector is a public good. 
A) Our government alters how resources are allocated in the economy by taxing,spending and issuing regulations. 
B) The price mechanism will work best if there are a limited number of firms in each industry. 
C) Lack of the provision of public goods is considered a market failure. 
D) Not everything produced by the public sector is a public good.

Question 18

Which one of the following is NOT a government failure?

Accepted Answer

A) The "bridge to nowhere" in Alaska 
B) The FEMA reaction to Hurricane Katrina 
C) Allowing federal budget deficits to be financed by foreigners while calling for further tax cuts to help incumbent politicians get reelected 
D) Water pollution 
A) The "bridge to nowhere" in Alaska 
B) The FEMA reaction to Hurricane Katrina 
C) Allowing federal budget deficits to be financed by foreigners while calling for further tax cuts to help incumbent politicians get reelected 
D) Water pollution

Question 19

Statement I: One major reason the Soviet Union collapsed was because it supported a huge military establishment that diverted most of its talent and capital to its military establishment.
Statement II: Despite his great efforts to shake up the bureaucracy and get the economy moving,Soviet president Mikhail Gorbachev failed.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 20

Under the old Soviet communist system,government planning was substituted for the ________________.

Accepted Answer

The answer of Under the old Soviet communist system,government planning...

Exam 3: The Mixed Economy

The role of _______ in the production process is central to why our country is rich and most of the rest of the world is poor.

In theory,___________ advocates the abolition of private property.

Under communism,_____________ owns and operates most of the means of production and distribution.

Which statement most closely reflects the viewpoint of Karl Marx?

Statement I.In the United States,the economic role of the government is played almost entirely at the federal level. Statement II.The outcomes of each of the three basic economic questions are affected by government actions.

Externalities may be internalized by

Statement I: It is the role of government to ensure that property rights are protected,but not to interfere with minimizing any unpleasant side effects from pollution. Statement II: The U.S.government must provide the infrastructure for a market system to function efficiently.

Karl Marx

In a centrally planned economy

Karl Marx believed in which of the following?

About ______ percent of China's population lives in rural areas.

Which does not fit with the others?

A public good is

Statement I: External costs are market failures,but external benefits are not. Statement II: The U.S.government provides the legal system under which our free enterprise economy can operate.

When the government determines the permissible level of pollution and issues permits to each polluting firm,this is a form of

Which statement is false?

Which of the following statements is not true?

Which one of the following is NOT a government failure?

Under the old Soviet communist system,government planning was substituted for the ________________.

A Brief Economic History of the United States

Resource Utilization

Supply and Demand

The Household Consumption Sector

The Business Investment Sector

The Government Sector

The Export-Import Sector

Gross Domestic Product

Economic Fluctuations, unemployment, and Inflation

Classical and Keynesian Economics

Fiscal Policy and the National Debt

Money and Banking

The Federal Reserve and Monetary Policy

A Century of Economic Theory

Economic Growth and Productivity

Demand,supply,and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

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