Question 1

Private ownership of most of the means of production is common to

Accepted Answer

A) capitalism and communism. 
B) capitalism and fascism. 
C) capitalism and socialism. 
D) fascism and communism. 
A) capitalism and communism. 
B) capitalism and fascism. 
C) capitalism and socialism. 
D) fascism and communism.

Question 2

Which of the following statements is true?

Accepted Answer

A) When the forces of supply and demand determine for whom goods are produced in a society,an equitable distribution of income will naturally result. 
B) An external cost will occur when some of the benefits derived from production of some good or service are enjoyed by a third party. 
C) One of the roles of our government is to transfer some income from the rich and the middle class to the poor. 
D) According to most economists' definition of competition,the American economy is very competitive. 
A) When the forces of supply and demand determine for whom goods are produced in a society,an equitable distribution of income will naturally result. 
B) An external cost will occur when some of the benefits derived from production of some good or service are enjoyed by a third party. 
C) One of the roles of our government is to transfer some income from the rich and the middle class to the poor. 
D) According to most economists' definition of competition,the American economy is very competitive.

Question 3

A $3 increase in the federal gasoline tax would do all of the following except

Accepted Answer

A) lower gasoline consumption. 
B) reduce air pollution. 
C) convince some American's to get rid of their gas-guzzling vehicles. 
D) reduce shipping costs. 
A) lower gasoline consumption. 
B) reduce air pollution. 
C) convince some American's to get rid of their gas-guzzling vehicles. 
D) reduce shipping costs.

Question 4

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

Accepted Answer

A) The development of a vaccine for preventing flu. 
B) Acid rain that destroys forest land throughout the Midwest. 
C) Gas prices that doubled between 1998 and 1999. 
D) A factory that dumps dangerous chemicals into the Hudson River. 
A) The development of a vaccine for preventing flu. 
B) Acid rain that destroys forest land throughout the Midwest. 
C) Gas prices that doubled between 1998 and 1999. 
D) A factory that dumps dangerous chemicals into the Hudson River.

Question 5

When our resources are not allocated efficiently,we have _____________.

Accepted Answer

The answer of When our resources are not allocated efficiently,we...

Question 6

Characteristics of the "invisible hand" concept include all of the following,except

Accepted Answer

A) Simple markets. 
B) Individuals and firms pursue their own self-interest without any central direction or regulation. 
C) A complete lack of government involvement in the economy. 
D) All of the choices are characteristics of the "invisible-hanD." 
A) Simple markets. 
B) Individuals and firms pursue their own self-interest without any central direction or regulation. 
C) A complete lack of government involvement in the economy. 
D) All of the choices are characteristics of the "invisible-hanD."

Question 7

Which of the following economic functions does the U.S.government perform?

Accepted Answer

A) Collects taxes 
B) Provides services 
C) Issues regulations 
D) The U.S.government performs all of these tasks 
A) Collects taxes 
B) Provides services 
C) Issues regulations 
D) The U.S.government performs all of these tasks

Question 8

A ban on leaded gasoline has reduced ____________ pollution.

Accepted Answer

The answer of A ban on leaded gasoline has reduced...

Question 9

The __________________ traces the flow of money,resources,and goods and services through the economy.

Accepted Answer

The answer of The __________________ traces the flow of money,resources,and...

Question 10

Each of the following is an example of the price mechanism at work,except when

Accepted Answer

A) wage and price controls were used during World War II to control inflation. 
B) consumers curtailed driving their cars when the price of gasoline increased dramatically in 2005. 
C) American farmers during World War I expanded production on previously unused land in response to higher crop prices. 
D) factories of gas-guzzling automobiles shut down when the price of gasoline triples in less than three months. 
A) wage and price controls were used during World War II to control inflation. 
B) consumers curtailed driving their cars when the price of gasoline increased dramatically in 2005. 
C) American farmers during World War I expanded production on previously unused land in response to higher crop prices. 
D) factories of gas-guzzling automobiles shut down when the price of gasoline triples in less than three months.

Question 11

The U.S.economy does a very good job with respect to

Accepted Answer

A) both equity and efficiency. 
B) equity,but not efficiency. 
C) efficiency,but not equity. 
D) neither equity nor efficiency. 
A) both equity and efficiency. 
B) equity,but not efficiency. 
C) efficiency,but not equity. 
D) neither equity nor efficiency.

Question 12

In the Soviet Union,most goods and services were produced by _________________.

Accepted Answer

The answer of In the Soviet Union,most goods and services...

Question 13

Which of the following statements is false?

Accepted Answer

A) Critics feel that wage and price controls interfere with the price mechanism. 
B) Sweden has one of the world's most equal distributions of income,but also has a relatively low standard of living. 
C) In the former Soviet Union,most of the crops were produced on collective farms. 
D) The price system is based on supply and demanD. 
A) Critics feel that wage and price controls interfere with the price mechanism. 
B) Sweden has one of the world's most equal distributions of income,but also has a relatively low standard of living. 
C) In the former Soviet Union,most of the crops were produced on collective farms. 
D) The price system is based on supply and demanD.

Question 14

Which statement about competition is true?

Accepted Answer

A) To have competition,no firm is large enough to have any influence over price. 
B) American industry is very competitive. 
C) The American automobile industry would be considered competitive if there were at least four firms in the industry. 
D) There is no competition in American industry. 
A) To have competition,no firm is large enough to have any influence over price. 
B) American industry is very competitive. 
C) The American automobile industry would be considered competitive if there were at least four firms in the industry. 
D) There is no competition in American industry.

Question 15

Statement I.Under fascism,the government owns the means of production.
Statement II.Nearly one-third of the world's countries may be described as fascist.

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 16

Which statement is true about China?

Accepted Answer

A) It is a world-class industrial power. 
B) It has not as yet achieved world-class industrial power,but it is heading in that direction. 
C) It has just begun its industrial development. 
D) It has virtually no industry,and has not yet embarked on a course of industrialization. 
A) It is a world-class industrial power. 
B) It has not as yet achieved world-class industrial power,but it is heading in that direction. 
C) It has just begun its industrial development. 
D) It has virtually no industry,and has not yet embarked on a course of industrialization.

Question 17

European communism collapsed during the years

Accepted Answer

A) 1969-1971. 
B) 1974-1976. 
C) 1979-1981. 
D) 1984-1986. 
E) 1989-1991. 
A) 1969-1971. 
B) 1974-1976. 
C) 1979-1981. 
D) 1984-1986. 
E) 1989-1991.

Question 18

Which description of capitalism was coined by Karl Marx?

Accepted Answer

A) The capitalist is led by an invisible hand to promote an end which was no part of his intention. 
B) By pursing his own interest he frequently promotes that of the society more effectively than when he really intends to promote it. 
C) The factory owner,by paying his workers meager wages,is able to use this surplus to buy more capital goods. 
D) None of these statements were coined by Karl Marx. 
A) The capitalist is led by an invisible hand to promote an end which was no part of his intention. 
B) By pursing his own interest he frequently promotes that of the society more effectively than when he really intends to promote it. 
C) The factory owner,by paying his workers meager wages,is able to use this surplus to buy more capital goods. 
D) None of these statements were coined by Karl Marx.

Question 19

Because of the scarcity of resources,every country must answer the three basic economic questions: _________________;____________________;and ________________.

Accepted Answer

what to produce;how

Question 20

All capitalist economies

Accepted Answer

A) can operate without government establishing a legal system. 
B) create an equal distribution of income. 
C) depend on central planning. 
D) depend on the price mechanism. 
A) can operate without government establishing a legal system. 
B) create an equal distribution of income. 
C) depend on central planning. 
D) depend on the price mechanism.

Exam 3: The Mixed Economy

Private ownership of most of the means of production is common to

Which of the following statements is true?

A $3 increase in the federal gasoline tax would do all of the following except

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

When our resources are not allocated efficiently,we have _____________.

Characteristics of the "invisible hand" concept include all of the following,except

Which of the following economic functions does the U.S.government perform?

A ban on leaded gasoline has reduced ____________ pollution.

The __________________ traces the flow of money,resources,and goods and services through the economy.

Each of the following is an example of the price mechanism at work,except when

The U.S.economy does a very good job with respect to

In the Soviet Union,most goods and services were produced by _________________.

Which of the following statements is false?

Which statement about competition is true?

Statement I.Under fascism,the government owns the means of production. Statement II.Nearly one-third of the world's countries may be described as fascist.

Which statement is true about China?

European communism collapsed during the years

Which description of capitalism was coined by Karl Marx?

Because of the scarcity of resources,every country must answer the three basic economic questions: _________________;____________________;and ________________.

All capitalist economies

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

Because of the scarcity of resources,every country must answer the three basic economic questions: _;;and .