Question 1

Sweden and Norway would best be described as _______ countries.

Accepted Answer

A) Capitalist 
B) Fascist 
C) Communist 
D) Socialist 
A) Capitalist 
B) Fascist 
C) Communist 
D) Socialist D

Question 2

The U.S.has a mixed economy because

Accepted Answer

A) the government helps in answering the three basic questions of economics: what,how and for whom. 
B) the laissez faire market system lacks government intervention. 
C) all goods and services are provided privately. 
D) the central planning body makes all market decisions. 
A) the government helps in answering the three basic questions of economics: what,how and for whom. 
B) the laissez faire market system lacks government intervention. 
C) all goods and services are provided privately. 
D) the central planning body makes all market decisions. A

Question 3

China embarked on a large-scale privatization since ___________.

Accepted Answer

1978

Question 4

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 5

Which of the following is NOT a characteristic of the capitalist form of economic organization?

Accepted Answer

A) Central planning. 
B) A reliance on decentralized market processes for resource allocation purposes. 
C) Private ownership of productive resources. 
D) All of the choices are true. 
A) Central planning. 
B) A reliance on decentralized market processes for resource allocation purposes. 
C) Private ownership of productive resources. 
D) All of the choices are true.

Question 6

In the circular flow model,businesses

Accepted Answer

A) demand both products and resources. 
B) supply both products and resources. 
C) demand products and supply resources. 
D) supply products and demand resources. 
A) demand both products and resources. 
B) supply both products and resources. 
C) demand products and supply resources. 
D) supply products and demand resources.

Question 7

When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters,this was an example of

Accepted Answer

A) following an incentive-based regulation. 
B) following a command-and-control regulation. 
C) conducting a transaction between polluters typical of those that have been carried out since the early 20th century. 
D) an illegal transaction. 
A) following an incentive-based regulation. 
B) following a command-and-control regulation. 
C) conducting a transaction between polluters typical of those that have been carried out since the early 20th century. 
D) an illegal transaction.

Question 8

In a capitalistic economic system,who owns most of the nation's resources?

Accepted Answer

A) Labor unions 
B) The government 
C) Private individuals 
D) No one 
A) Labor unions 
B) The government 
C) Private individuals 
D) No one

Question 9

The invisible hand is

Accepted Answer

A) Perfect competition. 
B) The profit motive. 
C) Government direction. 
D) The mixed economy. 
A) Perfect competition. 
B) The profit motive. 
C) Government direction. 
D) The mixed economy.

Question 10

A public good is

Accepted Answer

A) a good deed done by someone who refuses payment. 
B) something produced as sold by the government,for example,electricity provided by the Tennessee Valley Authority. 
C) something whose consumption by one person does not prevent its consumption by other people. 
D) something that is good for our country,but not necessarily for private individuals. 
A) a good deed done by someone who refuses payment. 
B) something produced as sold by the government,for example,electricity provided by the Tennessee Valley Authority. 
C) something whose consumption by one person does not prevent its consumption by other people. 
D) something that is good for our country,but not necessarily for private individuals.

Question 11

Which statement was true about China and the former Soviet Union in the 1970s and 1980s?

Accepted Answer

A) Both were good examples of pure communism. 
B) Neither was a good example of pure communism. 
C) The Soviet Union,but not China,was a good example of pure communism. 
D) China,but not the Soviet Union,was a good example of pure communism. 
A) Both were good examples of pure communism. 
B) Neither was a good example of pure communism. 
C) The Soviet Union,but not China,was a good example of pure communism. 
D) China,but not the Soviet Union,was a good example of pure communism.

Question 12

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 13

Suppose you live in the suburbs and dump your garbage on your front lawn on a daily basis.

Accepted Answer

A) Your actions hurt no one but yourself. 
B) Your actions constitute an external cost to your neighbors. 
C) Your actions constitute an external benefit to your neighbors. 
D) Your actions would not be considered a market failure. 
A) Your actions hurt no one but yourself. 
B) Your actions constitute an external cost to your neighbors. 
C) Your actions constitute an external benefit to your neighbors. 
D) Your actions would not be considered a market failure.

Question 14

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 15

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 16

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.

Question 17

Which of the following (is)are considered market failure(s)?

Accepted Answer

A) Monopoly. 
B) Externalities. 
C) The lack of public goods and services. 
D) All of the choices are considered market failures. 
A) Monopoly. 
B) Externalities. 
C) The lack of public goods and services. 
D) All of the choices are considered market failures.

Question 18

Which statement is true?

Accepted Answer

A) Private business firms are illegal in ChinA. 
B) In China today,there is strict adherence to the communist credo,"From each according to his ability,to each according to his needs." 
C) Major economic reforms in China in the late 1970s and early 1980s created a much more market oriented economy than a centrally planned one. 
D) None of the statements are true. 
A) Private business firms are illegal in ChinA. 
B) In China today,there is strict adherence to the communist credo,"From each according to his ability,to each according to his needs." 
C) Major economic reforms in China in the late 1970s and early 1980s created a much more market oriented economy than a centrally planned one. 
D) None of the statements are true.

Question 19

Under private enterprise,production is guided by ____________________________.

Accepted Answer

The answer of Under private enterprise,production is guided by ____________________________....

Question 20

If a nation starts out with very little capital

Accepted Answer

A) it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods. 
B) it can quite easily divert some resources from producing consumer goods to producing capital goods. 
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) None of the choices are true. 
A) it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods. 
B) it can quite easily divert some resources from producing consumer goods to producing capital goods. 
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) None of the choices are true.

Sweden and Norway would best be described as _______ countries.

The U.S.has a mixed economy because

China embarked on a large-scale privatization since ___________.

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

Which of the following is NOT a characteristic of the capitalist form of economic organization?

In the circular flow model,businesses

When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters,this was an example of

In a capitalistic economic system,who owns most of the nation's resources?

The invisible hand is

A public good is

Which statement was true about China and the former Soviet Union in the 1970s and 1980s?

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.

Suppose you live in the suburbs and dump your garbage on your front lawn on a daily basis.

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

An example of a public good would be

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.

Which of the following (is)are considered market failure(s)?

Which statement is true?

Under private enterprise,production is guided by ____________________________.

If a nation starts out with very little capital

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

Income Distribution and Poverty

International Trade

International Finance

Filters

Exam 3: The Mixed Economy

Sweden and Norway would best be described as _______ countries.

The U.S.has a mixed economy because

China embarked on a large-scale privatization since ___________.

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

Which of the following is NOT a characteristic of the capitalist form of economic organization?

In the circular flow model,businesses

When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters,this was an example of

In a capitalistic economic system,who owns most of the nation's resources?

The invisible hand is

A public good is

Which statement was true about China and the former Soviet Union in the 1970s and 1980s?

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.

Suppose you live in the suburbs and dump your garbage on your front lawn on a daily basis.

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

An example of a public good would be

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.

Which of the following (is)are considered market failure(s)?

Which statement is true?

Under private enterprise,production is guided by ____________________________.

If a nation starts out with very little capital

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

Income Distribution and Poverty

International Trade

International Finance

Filters