Question 1

The Chinese economy was set back by

Accepted Answer

A) the Great Leap Forward,but not the Cultural Revolution. 
B) the Cultural Revolution,but not the Great Leap Forward. 
C) both the Cultural Revolution and the Great Leap Forward. 
D) neither the Cultural Revolution nor the Great Leap ForwarD. 
A) the Great Leap Forward,but not the Cultural Revolution. 
B) the Cultural Revolution,but not the Great Leap Forward. 
C) both the Cultural Revolution and the Great Leap Forward. 
D) neither the Cultural Revolution nor the Great Leap ForwarD.

Question 2

Karl Marx said all of the following,except that

Accepted Answer

A) in the long run,capitalism would collapse. 
B) capitalists and workers generally had the same economic interests. 
C) one's social consciousness was determined by one's relationship to the means of production. 
D) whomever controlled a society's capital controlled that society. 
A) in the long run,capitalism would collapse. 
B) capitalists and workers generally had the same economic interests. 
C) one's social consciousness was determined by one's relationship to the means of production. 
D) whomever controlled a society's capital controlled that society.

Question 3

Which statement is most accurate?

Accepted Answer

A) By the mid 1980s,over 90 percent of China's agricultural land was farmed by private households. 
B) China has virtually no private sector. 
C) Although China's agricultural sector is market oriented,its industrial sector still uses the communist model. 
D) China's economy is almost entirely privately owneD. 
A) By the mid 1980s,over 90 percent of China's agricultural land was farmed by private households. 
B) China has virtually no private sector. 
C) Although China's agricultural sector is market oriented,its industrial sector still uses the communist model. 
D) China's economy is almost entirely privately owneD.

Question 4

The prediction of the overthrow of capitalism was made by

Accepted Answer

A) John Maynard Keynes. 
B) Adam Smith. 
C) Mikhail Gorbachev. 
D) Holden CaufielD. 
E) Karl Marx. 
A) John Maynard Keynes. 
B) Adam Smith. 
C) Mikhail Gorbachev. 
D) Holden CaufielD. 
E) Karl Marx.

Question 5

Statement I: In a centrally planned economy the government sets the prices and decides how much of each good is to be produced.
Statement II: In a market economy,the interaction of buyers and sellers sets prices and determines how much of each good is to be produced.

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

Statement I: By collecting taxes,providing services,and issuing regulations,the government has some effect on the three economic questions: what,how,and for whom.
Statement II: In the United States economy,the goals of equity and efficiency do not in any way come into conflict.

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 7

Karl Marx wrote largely about

Accepted Answer

A) 19th century England. 
B) 18th century England. 
C) 19th century Russia. 
D) 18th century Russia. 
E) 18th and 19th century England and Russia. 
A) 19th century England. 
B) 18th century England. 
C) 19th century Russia. 
D) 18th century Russia. 
E) 18th and 19th century England and Russia.

Question 8

Statement I.One of the economic roles of our government is to maintain our competitive system and ensure the relatively unfettered operation of the law of supply and demand.
Statement II.The Chinese economy has a very small private sector.

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 9

Ours is a mixed economy because there is a ______________________ sector and a _______________ sector.

Accepted Answer

private;pu

Question 10

The circular flow model shows the relationships between

Accepted Answer

A) government and business firms. 
B) government and households. 
C) households and business firms. 
A) government and business firms. 
B) government and households. 
C) households and business firms.

Question 11

Which statement is true?

Accepted Answer

A) In the United States most of our production is geared toward consumer goods. 
B) Nearly 25 percent of our national output is devoted to armaments. 
C) Japan devotes a higher proportion of its national output to armaments than we do. 
D) What gets produced in the United States is decided by a central planning board consisting of top government,corporate,and union officials. 
A) In the United States most of our production is geared toward consumer goods. 
B) Nearly 25 percent of our national output is devoted to armaments. 
C) Japan devotes a higher proportion of its national output to armaments than we do. 
D) What gets produced in the United States is decided by a central planning board consisting of top government,corporate,and union officials.

Question 12

Which of the following is NOT an example of a command-and-control regulation to limit pollution?

Accepted Answer

A) Fuel economy standards for all new cars 
B) A 50-cent tax on gasoline 
C) Mandating the use of catalytic converters on all new vehicles 
D) A ban on leaded gasoline 
A) Fuel economy standards for all new cars 
B) A 50-cent tax on gasoline 
C) Mandating the use of catalytic converters on all new vehicles 
D) A ban on leaded gasoline

Question 13

Under a communist system,

Accepted Answer

A) consumer decisions are not influenced by prices. 
B) resources are owned and controlled by the government. 
C) individual freedom is maximized. 
D) the market guides resources,but the state dictates what should be produceD. 
A) consumer decisions are not influenced by prices. 
B) resources are owned and controlled by the government. 
C) individual freedom is maximized. 
D) the market guides resources,but the state dictates what should be produceD.

Question 14

Which statement is false?

Accepted Answer

A) Under Soviet communism,government planning was substituted for the price mechanism. 
B) The entire Soviet economy was a Rube Goldberg contraption of subsidies,fixed prices,bureaucratic rules and regulations,special privilege,and outright corruption. 
C) Had Mikhail Gorbachev not begun dismantling the communist bureaucracy,the Soviet system probably would have been able to continue carrying on business as usual for another century. 
D) None of the statements are false. 
A) Under Soviet communism,government planning was substituted for the price mechanism. 
B) The entire Soviet economy was a Rube Goldberg contraption of subsidies,fixed prices,bureaucratic rules and regulations,special privilege,and outright corruption. 
C) Had Mikhail Gorbachev not begun dismantling the communist bureaucracy,the Soviet system probably would have been able to continue carrying on business as usual for another century. 
D) None of the statements are false.

Question 15

Which of the following is NOT an example of an externality?

Accepted Answer

A) The development of a vaccine for preventing SARS. 
B) Gas prices that rise in the summer due to increased vacation travel. 
C) Shipbreaking that industrial nations have exported to less developed countries. 
D) A factory that dumps dangerous chemicals into Lake Erie. 
A) The development of a vaccine for preventing SARS. 
B) Gas prices that rise in the summer due to increased vacation travel. 
C) Shipbreaking that industrial nations have exported to less developed countries. 
D) A factory that dumps dangerous chemicals into Lake Erie.

Question 16

An example of a public good would be

Accepted Answer

A) a plane ride from Miami to Dallas. 
B) flood control protection from the Tennessee Valley Authority (TV
A) . 
C) a commuter's trip to work by car from Berkeley to Chicago. 
D) a ride on a Greyhound bus from Phoenix to Los Angeles. 
A) a plane ride from Miami to Dallas. 
B) flood control protection from the Tennessee Valley Authority (TV
A) . 
C) a commuter's trip to work by car from Berkeley to Chicago. 
D) a ride on a Greyhound bus from Phoenix to Los Angeles.

Question 17

The price system is based on the law of _________________.

Accepted Answer

The answer of The price system is based on the...

Question 18

Which is true about the means of production?

Accepted Answer

A) Under capitalism it is privately owned,and under fascism it is owned by the government. 
B) Under fascism it is privately owned,and under capitalism it is owned by the government. 
C) Under both capitalism and fascism it is owned by the government. 
D) Under capitalism and fascism it is privately owneD. 
A) Under capitalism it is privately owned,and under fascism it is owned by the government. 
B) Under fascism it is privately owned,and under capitalism it is owned by the government. 
C) Under both capitalism and fascism it is owned by the government. 
D) Under capitalism and fascism it is privately owneD.

Question 19

A nation which has many active free markets in which profits motivate sellers and also regulatory bureaucracies would be an example of

Accepted Answer

A) a free market. 
B) a centrally planned economy. 
C) a mixed economy. 
D) an equitable economy. 
A) a free market. 
B) a centrally planned economy. 
C) a mixed economy. 
D) an equitable economy.

Question 20

Market failure means that

Accepted Answer

A) the law of supply and demand has stopped functioning. 
B) our resources are not allocated efficiently. 
C) the stock market has crashed. 
D) prices are no longer reliable indicators of how much things cost. 
A) the law of supply and demand has stopped functioning. 
B) our resources are not allocated efficiently. 
C) the stock market has crashed. 
D) prices are no longer reliable indicators of how much things cost.

Exam 3: The Mixed Economy

The Chinese economy was set back by

Karl Marx said all of the following,except that

Which statement is most accurate?

The prediction of the overthrow of capitalism was made by

Statement I: In a centrally planned economy the government sets the prices and decides how much of each good is to be produced. Statement II: In a market economy,the interaction of buyers and sellers sets prices and determines how much of each good is to be produced.

Statement I: By collecting taxes,providing services,and issuing regulations,the government has some effect on the three economic questions: what,how,and for whom. Statement II: In the United States economy,the goals of equity and efficiency do not in any way come into conflict.

Karl Marx wrote largely about

Statement I.One of the economic roles of our government is to maintain our competitive system and ensure the relatively unfettered operation of the law of supply and demand. Statement II.The Chinese economy has a very small private sector.

Ours is a mixed economy because there is a ______________________ sector and a _______________ sector.

The circular flow model shows the relationships between

Which statement is true?

Which of the following is NOT an example of a command-and-control regulation to limit pollution?

Under a communist system,

Which statement is false?

Which of the following is NOT an example of an externality?

An example of a public good would be

The price system is based on the law of _________________.

Which is true about the means of production?

A nation which has many active free markets in which profits motivate sellers and also regulatory bureaucracies would be an example of

Market failure means that

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

Filters

Ours is a mixed economy because there is a ________ sector and a _ sector.