Question 1

In a capitalist country most resources are owned by

Accepted Answer

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

Question 2

The main reason U.S.farmers can produce more than farmers in China is that they

Accepted Answer

A) have more land. 
B) have more capital. 
C) have more labor. 
D) are better traineD. 
A) have more land. 
B) have more capital. 
C) have more labor. 
D) are better traineD.

Question 3

Adam Smith

Accepted Answer

A) was a Scottish professor of philosophy. 
B) wrote The Wealth of Nations. 
C) said that the entrepreneur is motivated by self-interest. 
D) coined the term "the invisible hand," which means that the profit motive guides economic resources which effectively promotes the public interest. 
E) All of the statements about Adam Smith are true. 
A) was a Scottish professor of philosophy. 
B) wrote The Wealth of Nations. 
C) said that the entrepreneur is motivated by self-interest. 
D) coined the term "the invisible hand," which means that the profit motive guides economic resources which effectively promotes the public interest. 
E) All of the statements about Adam Smith are true.

Question 4

In order for the price mechanism to work,we need

Accepted Answer

A) To have the government regulate each industry. 
B) Many competing firms in each industry. 
C) To have only a few firms in each industry. 
D) None of the choices are true. 
A) To have the government regulate each industry. 
B) Many competing firms in each industry. 
C) To have only a few firms in each industry. 
D) None of the choices are true.

Question 5

Which is the most accurate statement?

Accepted Answer

A) There is no real competition in the American economy. 
B) To allow the price mechanism to work we need many competing firms in each industry. 
C) The forces of supply and demand do not operate in our economy. 
D) The price mechanism functions perfectly in our economy. 
A) There is no real competition in the American economy. 
B) To allow the price mechanism to work we need many competing firms in each industry. 
C) The forces of supply and demand do not operate in our economy. 
D) The price mechanism functions perfectly in our economy.

Question 6

When you paint the outside of your house,you not only enjoy a private benefit for yourself,but you also provide a(n)__________________ benefit.

Accepted Answer

The answer of When you paint the outside of your...

Question 7

__________________ is an obvious example of government failure.

Accepted Answer

A) The immensely complex and confusing U.S.income tax system 
B) The numerous forms the government sends all large and most medium-sized companies 
C) The perplexing Medicare drug prescription plan 
D) All of these statements are government failures. 
A) The immensely complex and confusing U.S.income tax system 
B) The numerous forms the government sends all large and most medium-sized companies 
C) The perplexing Medicare drug prescription plan 
D) All of these statements are government failures.

Question 8

Adam Smith

Accepted Answer

A) argued that capitalism is often confused with democracy. 
B) wrote Das Kapital. 
C) said that the entrepreneur is motivated by self-interest. 
D) coined the phrase: "From each according to his ability,to each according to his needs." 
A) argued that capitalism is often confused with democracy. 
B) wrote Das Kapital. 
C) said that the entrepreneur is motivated by self-interest. 
D) coined the phrase: "From each according to his ability,to each according to his needs."

Question 9

How did the Soviet model of communism compare to that of Karl Marx?

Accepted Answer

A) The models were identical. 
B) The Soviet model was faithful to the Marxian model,but it had been modified slightly over the years. 
C) What the Soviets were operating all these years was a classic capitalist model. 
D) While there was public ownership of the means of production,there did not appear to be a very close resemblance to the Marxian model. 
A) The models were identical. 
B) The Soviet model was faithful to the Marxian model,but it had been modified slightly over the years. 
C) What the Soviets were operating all these years was a classic capitalist model. 
D) While there was public ownership of the means of production,there did not appear to be a very close resemblance to the Marxian model.

Question 10

The invisible hand is closely related to each of the following,except

Accepted Answer

A) supply and demand. 
B) the price mechanism. 
C) greed. 
D) competition. 
E) fairness or equity. 
A) supply and demand. 
B) the price mechanism. 
C) greed. 
D) competition. 
E) fairness or equity.

Question 11

If large sectors of American industry are not very competitive,then the _______________ does not work as well as it could if American industry operated under a more perfectly competitive system.

Accepted Answer

price mech

Question 12

Statement I: Most Americans would be willing to give up driving to reduce auto emissions to zero.
Statement II: Trading in pollution permits is banned on the Chicago Board of Trade but has flourished on the black market.

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 13

Karl Marx and Friedrich Engels said

Accepted Answer

A) "The theory of the Communists may be summed up in the single sentence: Abolition of private property." 
B) "The vice of capitalism is that it stands for the unequal sharing of blessings;whereas the virtue of socialism is that it stands for the equal sharing of misery." 
C) "It is not the employer who pays wages-he only handles the money.It is the product that pays wages." 
D) "Capital is past savings accumulated for future production." 
A) "The theory of the Communists may be summed up in the single sentence: Abolition of private property." 
B) "The vice of capitalism is that it stands for the unequal sharing of blessings;whereas the virtue of socialism is that it stands for the equal sharing of misery." 
C) "It is not the employer who pays wages-he only handles the money.It is the product that pays wages." 
D) "Capital is past savings accumulated for future production."

Question 14

In the circular flow diagram,households supply __________ to business firms.

Accepted Answer

The answer of In the circular flow diagram,households supply __________...

Question 15

Which statement is false?

Accepted Answer

A) Nearly all economists prefer incentive-based regulations to command-and-control regulations to curb pollution. 
B) Emissions trading originated as a result of the 1990 Amendments to the Clean Air Act. 
C) In most other economically advanced countries,gasoline taxes are much higher compared to the United States. 
D) Since the passage of the Clean Air Act in 1972,there has been very little improvement in air quality in the United States. 
A) Nearly all economists prefer incentive-based regulations to command-and-control regulations to curb pollution. 
B) Emissions trading originated as a result of the 1990 Amendments to the Clean Air Act. 
C) In most other economically advanced countries,gasoline taxes are much higher compared to the United States. 
D) Since the passage of the Clean Air Act in 1972,there has been very little improvement in air quality in the United States.

Question 16

The major shortcoming of fuel economy standards is that they do not apply to ___________________.

Accepted Answer

The answer of The major shortcoming of fuel economy standards...

Question 17

What is a mixed economy?

Accepted Answer

A) An economy in which production and distribution is done by both a private sector and a public sector. 
B) An economy that has a mixture of resources. 
C) An economy run by representatives of different political parties. 
D) An economy that produces a blend of various products rather than concentrating on a single product. 
A) An economy in which production and distribution is done by both a private sector and a public sector. 
B) An economy that has a mixture of resources. 
C) An economy run by representatives of different political parties. 
D) An economy that produces a blend of various products rather than concentrating on a single product.

Question 18

In 2009,China's export surplus with the U.S.reached _______ million.

Accepted Answer

A) $227 
B) $50 
C) $100 
D) $500 
A) $227 
B) $50 
C) $100 
D) $500

Question 19

In the mid-1980s,in which communist country did the credo change from "From each according to his ability,to each according to his needs" to "More pay for more work,less pay for less work"?

Accepted Answer

A) The Soviet Union 
B) Vietnam 
C) Cuba 
D) China 
A) The Soviet Union 
B) Vietnam 
C) Cuba 
D) China

Question 20

In a centrally planned economic system,who decides what and how much will be produced?

Accepted Answer

A) Consumers 
B) Privately owned businesses 
C) The government 
D) The people,by referendum every five years 
E) Consumers and producers together,guided by the market 
A) Consumers 
B) Privately owned businesses 
C) The government 
D) The people,by referendum every five years 
E) Consumers and producers together,guided by the market

Exam 3: The Mixed Economy

In a capitalist country most resources are owned by

The main reason U.S.farmers can produce more than farmers in China is that they

Adam Smith

In order for the price mechanism to work,we need

Which is the most accurate statement?

When you paint the outside of your house,you not only enjoy a private benefit for yourself,but you also provide a(n)__________________ benefit.

__________________ is an obvious example of government failure.

Adam Smith

How did the Soviet model of communism compare to that of Karl Marx?

The invisible hand is closely related to each of the following,except

If large sectors of American industry are not very competitive,then the _______________ does not work as well as it could if American industry operated under a more perfectly competitive system.

Statement I: Most Americans would be willing to give up driving to reduce auto emissions to zero. Statement II: Trading in pollution permits is banned on the Chicago Board of Trade but has flourished on the black market.

Karl Marx and Friedrich Engels said

In the circular flow diagram,households supply __________ to business firms.

Which statement is false?

The major shortcoming of fuel economy standards is that they do not apply to ___________________.

What is a mixed economy?

In 2009,China's export surplus with the U.S.reached _______ million.

In the mid-1980s,in which communist country did the credo change from "From each according to his ability,to each according to his needs" to "More pay for more work,less pay for less work"?

In a centrally planned economic system,who decides what and how much will be produced?

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