Question 1

Rent-seeking behavior can sometimes cause

Accepted Answer

A)  housing rental prices to increase. 
B)  a decrease in government spending. 
C)  corruption in public officials. 
D)  a sharp increase in economic activity. 
A)  housing rental prices to increase. 
B)  a decrease in government spending. 
C)  corruption in public officials. 
D)  a sharp increase in economic activity. C

Question 2

In 1997 the FTC blocked the merger between Staples and Office Depot.Why was this merger blocked?

Accepted Answer

If the merger was allowed to proceed,consumers would have paid millions more for products due to reduced competition in the marketplace.Staples and Office Depot were both large competitors in the office supply marketplace.Their merger would eliminate a competitor,thereby reducing major competition and leaving consumers with fewer choices.This would have resulted in higher prices on products.

Question 3

The private sector includes privately owned businesses and for-profit divisions of various governments.

Accepted Answer

A) True 
 B)False  False

Question 4

In the United States,the government does NOT play much of a role in

Accepted Answer

A)  Managing globalization. 
B)  Encouraging technological change. 
C)  Inspiring consumer preferences. 
D)  Shaping financial markets. 
A)  Managing globalization. 
B)  Encouraging technological change. 
C)  Inspiring consumer preferences. 
D)  Shaping financial markets.

Question 5

Which of the following was NOT part of the New Deal?

Accepted Answer

A)  Social Security. 
B)  Unemployment insurance. 
C)  The federal minimum wage. 
D)  Medicare. 
A)  Social Security. 
B)  Unemployment insurance. 
C)  The federal minimum wage. 
D)  Medicare.

Question 6

After a tax is placed on a good or service,which of the following does not occur?

Accepted Answer

A)  Buyers pay more for the good or service. 
B)  Sellers receive less when they produce and sell the good or service. 
C)  The total volume of sales of the good or service decreases. 
D)  The total volume of sales of the good or service increases. 
A)  Buyers pay more for the good or service. 
B)  Sellers receive less when they produce and sell the good or service. 
C)  The total volume of sales of the good or service decreases. 
D)  The total volume of sales of the good or service increases.

Question 7

Which of the following is NOT an appropriate role for government to play in the economy?

Accepted Answer

A)  Regulating markets. 
B)  Promoting free speech in marketing. 
C)  Addressing externalities. 
D)  Redistributing income. 
A)  Regulating markets. 
B)  Promoting free speech in marketing. 
C)  Addressing externalities. 
D)  Redistributing income.

Question 8

What are the four justifications for government intervention in the economy? Describe two in detail,providing an example of each.

Accepted Answer

The four justifications for government i

Question 9

In 1971 President Richard Nixon announced a 90-day freeze on wage and price increases to stem economic stagflation.

Accepted Answer

A) True 
 B)False

Question 10

Under President John
F. Kennedy, the United States expanded its highway system, creating 50,000 miles of high-speed limited-access highway.

Accepted Answer

A) True 
 B)False

Question 11

As one of the New Deal programs,the WPA was a government agency that

Accepted Answer

A)  regulated the banking industry. 
B)  regulated the securities industry. 
C)  regulated the trucking and interstate commerce industries. 
D)  increased employment through construction projects. 
A)  regulated the banking industry. 
B)  regulated the securities industry. 
C)  regulated the trucking and interstate commerce industries. 
D)  increased employment through construction projects.

Question 12

The potential profit from new technological advancements and innovations

Accepted Answer

A)  Gives the private sector a better incentive to commercialize new technologies. 
B)  Gives the public sector a better incentive to make investments into farsighted research. 
C)  Leads to rent-seeking behavior and corruption in government. 
D)  Provides similar incentives to the private and public sectors with respect to researching new technologies. 
A)  Gives the private sector a better incentive to commercialize new technologies. 
B)  Gives the public sector a better incentive to make investments into farsighted research. 
C)  Leads to rent-seeking behavior and corruption in government. 
D)  Provides similar incentives to the private and public sectors with respect to researching new technologies.

Question 13

______________ means that government sets the rules for market competition.

Accepted Answer

A)  Market regulation 
B)  Market dynamics 
C)  Market economics 
D)  Government metrics 
A)  Market regulation 
B)  Market dynamics 
C)  Market economics 
D)  Government metrics

Question 14

There are no discernible downsides to government action.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT a public good?

Accepted Answer

A)  Police protection. 
B)  Fire protection. 
C)  Primary and secondary education. 
D)  Business incubator sites. 
A)  Police protection. 
B)  Fire protection. 
C)  Primary and secondary education. 
D)  Business incubator sites.

Question 16

When one person's actions harm others (such as in the case of pollution),economists say that a(n)_________ is present.

Accepted Answer

A)  network externality 
B)  antitrust externality 
C)  negative externality 
D)  market externality 
A)  network externality 
B)  antitrust externality 
C)  negative externality 
D)  market externality

Question 17

Imposing a tax on a market typically hurts

Accepted Answer

A)  buyers only. 
B)  sellers only. 
C)  both buyers and sellers. 
D)  buyers, sellers, and government agencies. 
A)  buyers only. 
B)  sellers only. 
C)  both buyers and sellers. 
D)  buyers, sellers, and government agencies.

Question 18

Rent-seeking behavior means

Accepted Answer

A)  companies try to increase profit by cutting costs or improving products. 
B)  companies spend money on influencing government rather than on profit-increasing strategies. 
C)  consumer real estate studies that focus on renting versus buying. 
D)  a transfer of knowledge between private and public sectors. 
A)  companies try to increase profit by cutting costs or improving products. 
B)  companies spend money on influencing government rather than on profit-increasing strategies. 
C)  consumer real estate studies that focus on renting versus buying. 
D)  a transfer of knowledge between private and public sectors.

Question 19

The Securities and Exchange Commission regulates

Accepted Answer

A)  security and alarm companies. 
B)  nonmonetary exchanges, like bartering. 
C)  stock markets. 
D)  auto insurance companies. 
A)  security and alarm companies. 
B)  nonmonetary exchanges, like bartering. 
C)  stock markets. 
D)  auto insurance companies.

Question 20

Among industrialized countries,the United States has one of the __________ public sectors,as a percentage of government spending and the economy.

Accepted Answer

A)  smallest 
B)  largest 
C)  fastest-growing 
D)  slowest-growing 
A)  smallest 
B)  largest 
C)  fastest-growing 
D)  slowest-growing

Rent-seeking behavior can sometimes cause

In 1997 the FTC blocked the merger between Staples and Office Depot.Why was this merger blocked?

The private sector includes privately owned businesses and for-profit divisions of various governments.

In the United States,the government does NOT play much of a role in

Which of the following was NOT part of the New Deal?

After a tax is placed on a good or service,which of the following does not occur?

Which of the following is NOT an appropriate role for government to play in the economy?

What are the four justifications for government intervention in the economy? Describe two in detail,providing an example of each.

In 1971 President Richard Nixon announced a 90-day freeze on wage and price increases to stem economic stagflation.

Under President John F. Kennedy, the United States expanded its highway system, creating 50,000 miles of high-speed limited-access highway.

As one of the New Deal programs,the WPA was a government agency that

The potential profit from new technological advancements and innovations

______________ means that government sets the rules for market competition.

There are no discernible downsides to government action.

Which of the following is NOT a public good?

When one person's actions harm others (such as in the case of pollution),economists say that a(n)_________ is present.

Imposing a tax on a market typically hurts

Rent-seeking behavior means

The Securities and Exchange Commission regulates

Among industrialized countries,the United States has one of the __________ public sectors,as a percentage of government spending and the economy.

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters

Exam 6: Government and the Economy

Rent-seeking behavior can sometimes cause

In 1997 the FTC blocked the merger between Staples and Office Depot.Why was this merger blocked?

The private sector includes privately owned businesses and for-profit divisions of various governments.

In the United States,the government does NOT play much of a role in

Which of the following was NOT part of the New Deal?

After a tax is placed on a good or service,which of the following does not occur?

Which of the following is NOT an appropriate role for government to play in the economy?

What are the four justifications for government intervention in the economy? Describe two in detail,providing an example of each.

In 1971 President Richard Nixon announced a 90-day freeze on wage and price increases to stem economic stagflation.

Under President John F. Kennedy, the United States expanded its highway system, creating 50,000 miles of high-speed limited-access highway.

As one of the New Deal programs,the WPA was a government agency that

The potential profit from new technological advancements and innovations

______________ means that government sets the rules for market competition.

There are no discernible downsides to government action.

Which of the following is NOT a public good?

When one person's actions harm others (such as in the case of pollution),economists say that a(n)_________ is present.

Imposing a tax on a market typically hurts

Rent-seeking behavior means

The Securities and Exchange Commission regulates

Among industrialized countries,the United States has one of the __________ public sectors,as a percentage of government spending and the economy.

Introduction

Demand and Supply: The Basics of the Market Economy

Market Equilibrium and Shifts

How Businesses Work

Competition and Market Power

The First Step Into Macroeconomics

Inflation

Growth

Business Cycles, unemployment and Inflation

Fiscal Policy

Monetary Policy

The Financial Markets

International Trade

Technological Change

Economics of the Labor Market

The Distribution of Income

Economics of Retirement and Healthcare

Economics of Energy, the Environment, and Global Climate Change Glossary

Filters