Question 1

Which is the accurate statement?

Accepted Answer

A) There is no evidence that there is such a thing as global warming. 
B) By the end of the century,most of the cities on the east coast and the west coast will be under water. 
C) The effects of global warming are uncertain. 
D) Scientific opinion is virtually unanimous about the effects of global warming. 
A) There is no evidence that there is such a thing as global warming. 
B) By the end of the century,most of the cities on the east coast and the west coast will be under water. 
C) The effects of global warming are uncertain. 
D) Scientific opinion is virtually unanimous about the effects of global warming.

Question 2

Compared to 35 years ago,air quality in the United States is

Accepted Answer

A) Much worse 
B) Worse 
C) Virtually the same 
D) Better 
A) Much worse 
B) Worse 
C) Virtually the same 
D) Better

Question 3

The theory of the communists could be summed up in a single phrase: _____________________________.

Accepted Answer

the abolit

Question 4

Which statement is most accurate?

Accepted Answer

A) Communism is completely dead as an economic system. 
B) Communism is the wave of the future. 
C) Although the United States is nominally a capitalist society,we have a basically communist economy system. 
D) The American economy is guided almost entirely by the price mechanism. 
A) Communism is completely dead as an economic system. 
B) Communism is the wave of the future. 
C) Although the United States is nominally a capitalist society,we have a basically communist economy system. 
D) The American economy is guided almost entirely by the price mechanism.

Question 5

An external cost occurs when

Accepted Answer

A) some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party. 
B) the production or consumption of some good or service inflicts costs on a third party without compensation. 
C) private costs exceed social costs. 
D) private costs exceed private benefits. 
A) some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party. 
B) the production or consumption of some good or service inflicts costs on a third party without compensation. 
C) private costs exceed social costs. 
D) private costs exceed private benefits.

Question 6

In the United States and in most other developed capitalist economies,the government

Accepted Answer

A) typically plays a significant role in allocating resources and redistributing income. 
B) serves to enforce property rights,but plays no role in the allocation of society's resources. 
C) is primarily concerned with central planning. 
D) employs less than 1% of the labor force. 
E) None of the choices are true. 
A) typically plays a significant role in allocating resources and redistributing income. 
B) serves to enforce property rights,but plays no role in the allocation of society's resources. 
C) is primarily concerned with central planning. 
D) employs less than 1% of the labor force. 
E) None of the choices are true.

Question 7

Karl Marx said the people who control a society are the people who

Accepted Answer

A) run the government. 
B) own the land. 
C) own the plant and equipment. 
D) work in the factories. 
A) run the government. 
B) own the land. 
C) own the plant and equipment. 
D) work in the factories.

Question 8

In a pure capitalist economy,"what to produce" is determined by

Accepted Answer

A) government central planning committees. 
B) the price mechanism. 
C) the credo: "Each according to his ability,to each according to his needs". 
D) all of the choices are true. 
A) government central planning committees. 
B) the price mechanism. 
C) the credo: "Each according to his ability,to each according to his needs". 
D) all of the choices are true.

Question 9

Under capitalism the role of government is best described as

Accepted Answer

A) Nonexistent. 
B) Limited. 
C) Significant. 
D) Extensive. 
A) Nonexistent. 
B) Limited. 
C) Significant. 
D) Extensive.

Question 10

Pollution is an example of an _____________ cost.

Accepted Answer

The answer of Pollution is an example of an _____________...

Question 11

Each of the following is a characteristic of socialism,except

Accepted Answer

A) prohibition of any private ownership of the means of production. 
B) a substantial degree of government planning. 
C) a large-scale redistribution of income. 
D) government ownership of some of the means of production. 
A) prohibition of any private ownership of the means of production. 
B) a substantial degree of government planning. 
C) a large-scale redistribution of income. 
D) government ownership of some of the means of production.

Question 12

When we drive our cars,we incur not only a private cost,but also a(n)________ cost.

Accepted Answer

The answer of When we drive our cars,we incur not...

Question 13

According to most economists,

Accepted Answer

A) command-and-control regulations work better than incentive-based regulations. 
B) incentive-based regulations work better than command-and-control regulations. 
C) command-and-control regulations have about the same effectiveness as incentive-based regulations. 
A) command-and-control regulations work better than incentive-based regulations. 
B) incentive-based regulations work better than command-and-control regulations. 
C) command-and-control regulations have about the same effectiveness as incentive-based regulations.

Question 14

Which economic system is usually associated with government ownership of the means of production and central planning?

Accepted Answer

A) Communism 
B) A market system 
C) Mercantilism 
D) Fascism 
E) Capitalism 
A) Communism 
B) A market system 
C) Mercantilism 
D) Fascism 
E) Capitalism

Question 15

All of the following countries have been described as socialist economies,except

Accepted Answer

A) Norway 
B) France 
C) Sweden 
D) The United States 
A) Norway 
B) France 
C) Sweden 
D) The United States

Question 16

Statement I.Public goods tend to be indivisible.
Statement II.There is often no way to exclude anyone from consuming a public good if she or he did not pay for it.

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 17

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Accepted Answer

make a profit,or the

Question 18

The original source of capital is _________.

Accepted Answer

The answer of The original source of capital is _________....

Question 19

The U.S.has a mixed economy because

Accepted Answer

A) the government helps in answering the three basic questions of economics: what,how and for whom. 
B) the laissez faire market system lacks government intervention. 
C) all goods and services are provided privately. 
D) the central planning body makes all market decisions. 
A) the government helps in answering the three basic questions of economics: what,how and for whom. 
B) the laissez faire market system lacks government intervention. 
C) all goods and services are provided privately. 
D) the central planning body makes all market decisions.

Question 20

When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters,this was an example of

Accepted Answer

A) following an incentive-based regulation. 
B) following a command-and-control regulation. 
C) conducting a transaction between polluters typical of those that have been carried out since the early 20th century. 
D) an illegal transaction. 
A) following an incentive-based regulation. 
B) following a command-and-control regulation. 
C) conducting a transaction between polluters typical of those that have been carried out since the early 20th century. 
D) an illegal transaction.

Exam 3: The Mixed Economy

Which is the accurate statement?

Compared to 35 years ago,air quality in the United States is

The theory of the communists could be summed up in a single phrase: _____________________________.

Which statement is most accurate?

An external cost occurs when

In the United States and in most other developed capitalist economies,the government

Karl Marx said the people who control a society are the people who

In a pure capitalist economy,"what to produce" is determined by

Under capitalism the role of government is best described as

Pollution is an example of an _____________ cost.

Each of the following is a characteristic of socialism,except

When we drive our cars,we incur not only a private cost,but also a(n)________ cost.

According to most economists,

Which economic system is usually associated with government ownership of the means of production and central planning?

All of the following countries have been described as socialist economies,except

Statement I.Public goods tend to be indivisible. Statement II.There is often no way to exclude anyone from consuming a public good if she or he did not pay for it.

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

The original source of capital is _________.

The U.S.has a mixed economy because

When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters,this was an example of

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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