Question 1

The two traumatic events which disrupted China's economic development in the late 1950s and mid-1960s were the _________________________ and the ________________________.

Accepted Answer

Great Leap

Question 2

Statement I.There are several public goods that were once privately produced.
Statement II.National defense is a public good.

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 3

Karl Marx said that whoever controlled a society's __________ controlled that society.

Accepted Answer

plant and equipment

Question 4

The famous phrase "the invisible hand" is associated with the economist ______________ ___________.

Accepted Answer

The answer of The famous phrase "the invisible hand" is...

Question 5

Statement I.We have market failure when our resources are not allocated efficiently.
Statement II.An oil refinery incurs both private and social (or external)costs.

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

Which of the following economists believed that the factory owner,by paying his workers meager wages,was able to use this surplus to buy more capital goods?

Accepted Answer

A) Adam Smith 
B) Thorstein Veblen 
C) Milton Friedman 
D) Karl Marx 
E) John Maynard Keynes 
A) Adam Smith 
B) Thorstein Veblen 
C) Milton Friedman 
D) Karl Marx 
E) John Maynard Keynes

Question 7

Statement I: Nearly all economists prefer command-and-control to incentive-based regulations to curb pollution.
Statement II: Voting for a $4 per gallon tax on gasoline would be political suicide for most of our Representatives and Senators.

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

Which one of these is not a characteristic of capitalism?

Accepted Answer

A) Central planning 
B) Private property 
C) The price mechanism 
D) Competition 
A) Central planning 
B) Private property 
C) The price mechanism 
D) Competition

Question 9

Which of the following is NOT a characteristic of a centrally planned economy?

Accepted Answer

A) Consumers vote with their dollars thus guiding resources to produce what the society wants. 
B) Government sets the prices. 
C) The government decides how much of each good should be produced. 
D) All of these statements are characteristics of centrally planned economy. 
A) Consumers vote with their dollars thus guiding resources to produce what the society wants. 
B) Government sets the prices. 
C) The government decides how much of each good should be produced. 
D) All of these statements are characteristics of centrally planned economy.

Question 10

If a person wanted to raise some capital and was unable to borrow it,they could either ________ or ________.

Accepted Answer

cut back o

Question 11

Which of the following statements is true?

Accepted Answer

A) Karl Marx coined the term "the invisible hand." 
B) Adam Smith wrote Das Kapital. 
C) Karl Marx believed the state would eventually wither away leaving a worker's paradise. 
D) Adam Smith believed that individuals unselfishly pursue the public gooD. 
A) Karl Marx coined the term "the invisible hand." 
B) Adam Smith wrote Das Kapital. 
C) Karl Marx believed the state would eventually wither away leaving a worker's paradise. 
D) Adam Smith believed that individuals unselfishly pursue the public gooD.

Question 12

An economic model is

Accepted Answer

A) a tool of logic that assumes that if event A precedes event B,A must be the cause of 
B) a simplified version of reality. 
C) a tool of logic that assumes that the whole is greater than the sum of the parts. 
D) a larger,more complicated version of reality. 
A) a tool of logic that assumes that if event A precedes event B,A must be the cause of 
B) a simplified version of reality. 
C) a tool of logic that assumes that the whole is greater than the sum of the parts. 
D) a larger,more complicated version of reality.

Question 13

Statement I.The circular flow model oversimplifies the exchanges in our economy.
Statement II.Most of the money received by households in the form of wages,rent,interest,and profits flows back to business firms in the form of consumer expenditures.

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 14

The price mechanism

Accepted Answer

A) works best when many competing business firms are in each industry. 
B) works best when government through a central planning agency sets prices. 
C) works best when corporations set prices for a market economy. 
D) All of the choices are true about price mechanism. 
A) works best when many competing business firms are in each industry. 
B) works best when government through a central planning agency sets prices. 
C) works best when corporations set prices for a market economy. 
D) All of the choices are true about price mechanism.

Question 15

___________________ a mixed economy.

Accepted Answer

A) Every nation has 
B) Most nations have 
C) A few nations have 
D) No nation has 
A) Every nation has 
B) Most nations have 
C) A few nations have 
D) No nation has

Question 16

If a nation starts out with very little capital

Accepted Answer

A) it can increase its capital if it is able to divert productive resources from producing consumer goods to producing capital goods. 
B) the process of diverting some resources from producing consumer goods to producing capital goods will most likely be quite painful. 
C) if it is lucky enough to possess a valuable commodity that the industrial world wants,such as oil,it can sell its oil in exchange for plant and equipment and thus industrialize. 
D) All of the choices are true. 
A) it can increase its capital if it is able to divert productive resources from producing consumer goods to producing capital goods. 
B) the process of diverting some resources from producing consumer goods to producing capital goods will most likely be quite painful. 
C) if it is lucky enough to possess a valuable commodity that the industrial world wants,such as oil,it can sell its oil in exchange for plant and equipment and thus industrialize. 
D) All of the choices are true.

Question 17

The central institution through which a laissez-faire system answers the basic economic questions is the

Accepted Answer

A) tribal council. 
B) market. 
C) government. 
D) central planning body. 
A) tribal council. 
B) market. 
C) government. 
D) central planning body.

Question 18

The development of the polio vaccine would be considered a(n)_____________________ to society.

Accepted Answer

The answer of The development of the polio vaccine would...

Question 19

Which one of the following is not a mixed economy?

Accepted Answer

A) United States 
B) China 
C) Japan 
D) Sweden 
E) All of the countries listed are mixed economies. 
A) United States 
B) China 
C) Japan 
D) Sweden 
E) All of the countries listed are mixed economies.

Question 20

Statement I: SUVs are not subject to fuel standard requirements.
Statement II: A federal tax on gasoline is an example of a command and control regulation.

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.

Exam 3: The Mixed Economy

The two traumatic events which disrupted China's economic development in the late 1950s and mid-1960s were the _________________________ and the ________________________.

Statement I.There are several public goods that were once privately produced. Statement II.National defense is a public good.

Karl Marx said that whoever controlled a society's __________ controlled that society.

The famous phrase "the invisible hand" is associated with the economist ______________ ___________.

Statement I.We have market failure when our resources are not allocated efficiently. Statement II.An oil refinery incurs both private and social (or external)costs.

Which of the following economists believed that the factory owner,by paying his workers meager wages,was able to use this surplus to buy more capital goods?

Statement I: Nearly all economists prefer command-and-control to incentive-based regulations to curb pollution. Statement II: Voting for a $4 per gallon tax on gasoline would be political suicide for most of our Representatives and Senators.

Which one of these is not a characteristic of capitalism?

Which of the following is NOT a characteristic of a centrally planned economy?

If a person wanted to raise some capital and was unable to borrow it,they could either ________ or ________.

Which of the following statements is true?

An economic model is

Statement I.The circular flow model oversimplifies the exchanges in our economy. Statement II.Most of the money received by households in the form of wages,rent,interest,and profits flows back to business firms in the form of consumer expenditures.

The price mechanism

___________________ a mixed economy.

If a nation starts out with very little capital

The central institution through which a laissez-faire system answers the basic economic questions is the

The development of the polio vaccine would be considered a(n)_____________________ to society.

Which one of the following is not a mixed economy?

Statement I: SUVs are not subject to fuel standard requirements. Statement II: A federal tax on gasoline is an example of a command and control regulation.

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

The two traumatic events which disrupted China's economic development in the late 1950s and mid-1960s were the _ and the .

The famous phrase "the invisible hand" is associated with the economist ____ _.

If a person wanted to raise some capital and was unable to borrow it,they could either or .