Question 1

Which statement is true?

Accepted Answer

A) In the United States most of our production is geared toward consumer goods. 
B) Nearly 25 percent of our national output is devoted to armaments. 
C) Japan devotes a higher proportion of its national output to armaments than we do. 
D) What gets produced in the United States is decided by a central planning board consisting of top government,corporate,and union officials. 
A) In the United States most of our production is geared toward consumer goods. 
B) Nearly 25 percent of our national output is devoted to armaments. 
C) Japan devotes a higher proportion of its national output to armaments than we do. 
D) What gets produced in the United States is decided by a central planning board consisting of top government,corporate,and union officials.

Question 2

The circular flow model shows the relationships between

Accepted Answer

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

Question 3

Under the old Soviet version of communism in the U.S.S.R. ,the questions of 'What?','How?',and 'For whom?' were answered by

Accepted Answer

A) a democratically elected congress called the DumA. 
B) the law of supply and demand. 
C) the decisions of hundreds of millions of individual consumers. 
D) a government planning committee. 
E) the owners of private businesses. 
A) a democratically elected congress called the DumA. 
B) the law of supply and demand. 
C) the decisions of hundreds of millions of individual consumers. 
D) a government planning committee. 
E) the owners of private businesses.

Question 4

The goals of equity and ________________ are sometimes in conflict.

Accepted Answer

A) fairness 
B) efficiency 
C) capital 
A) fairness 
B) efficiency 
C) capital

Question 5

The price system is based on the law of _________________.

Accepted Answer

The answer of The price system is based on the...

Question 6

The original source of capital is _________.

Accepted Answer

The answer of The original source of capital is _________....

Question 7

Statement I.Pollution is an example of market failure.
Statement II.Externalities can be costs or benefits.

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

Private ownership of nearly all of a nation's land,labor,capital,and entrepreneurial ability is common to

Accepted Answer

A) communism. 
B) fascism. 
C) socialism. 
D) None of these choices are true. 
A) communism. 
B) fascism. 
C) socialism. 
D) None of these choices are true.

Question 9

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Accepted Answer

make a profit,or the

Question 10

Which statement is the most accurate?

Accepted Answer

A) China is a completely economically backward nation. 
B) China's economic growth has been extremely low for the last 20 years. 
C) China is subjected to periodic famine. 
D) Since 1978,Chinese leaders have relaxed rigid party control of the economy and permitted more individual initiative. 
A) China is a completely economically backward nation. 
B) China's economic growth has been extremely low for the last 20 years. 
C) China is subjected to periodic famine. 
D) Since 1978,Chinese leaders have relaxed rigid party control of the economy and permitted more individual initiative.

Question 11

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 12

Statement I: External costs are market failures,but external benefits are not.
Statement II: The U.S.government provides the legal system under which our free enterprise economy can operate.

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

The U.S.distribution system is

Accepted Answer

A) identical to that of the former Soviet Union. 
B) based on a pure socialist economy. 
C) determined by a modified version of one dollar,one vote. 
D) similar to the fascist 1930's Germany. 
A) identical to that of the former Soviet Union. 
B) based on a pure socialist economy. 
C) determined by a modified version of one dollar,one vote. 
D) similar to the fascist 1930's Germany.

Question 14

The role of _______ in the production process is central to why our country is rich and most of the rest of the world is poor.

Accepted Answer

A) Labor 
B) Land 
C) Capital 
D) Government 
A) Labor 
B) Land 
C) Capital 
D) Government

Question 15

When we drive our cars,we incur not only a private cost,but also a(n)________ cost.

Accepted Answer

The answer of When we drive our cars,we incur not...

Question 16

A four dollar tax on a gallon of gasoline would

Accepted Answer

A) lower gasoline consumption and lower air pollution. 
B) lower gasoline consumption and raise air pollution. 
C) raise gasoline consumption and raise air pollution. 
D) raise gasoline consumption and lower air pollution. 
A) lower gasoline consumption and lower air pollution. 
B) lower gasoline consumption and raise air pollution. 
C) raise gasoline consumption and raise air pollution. 
D) raise gasoline consumption and lower air pollution.

Question 17

In the year _______ the communist governments in eastern Europe were swept out of power.

Accepted Answer

The answer of In the year _______ the communist governments...

Question 18

In a pure capitalist economy,"what to produce" is determined by

Accepted Answer

A) government central planning committees. 
B) the price mechanism. 
C) the credo: "Each according to his ability,to each according to his needs". 
D) all of the choices are true. 
A) government central planning committees. 
B) the price mechanism. 
C) the credo: "Each according to his ability,to each according to his needs". 
D) all of the choices are true.

Question 19

Which statement is false?

Accepted Answer

A) Under Soviet communism,government planning was substituted for the price mechanism. 
B) The entire Soviet economy was a Rube Goldberg contraption of subsidies,fixed prices,bureaucratic rules and regulations,special privilege,and outright corruption. 
C) Had Mikhail Gorbachev not begun dismantling the communist bureaucracy,the Soviet system probably would have been able to continue carrying on business as usual for another century. 
D) None of the statements are false. 
A) Under Soviet communism,government planning was substituted for the price mechanism. 
B) The entire Soviet economy was a Rube Goldberg contraption of subsidies,fixed prices,bureaucratic rules and regulations,special privilege,and outright corruption. 
C) Had Mikhail Gorbachev not begun dismantling the communist bureaucracy,the Soviet system probably would have been able to continue carrying on business as usual for another century. 
D) None of the statements are false.

Question 20

Which statement most closely reflects the viewpoint of Karl Marx?

Accepted Answer

A) Whoever controls a society's capital controls that society. 
B) By pursuing his own interest,a business owner frequently promotes that of the society more effectually than when he really intends to promote it. 
C) The capitalist,who has saved for years to buy his machinery and factory is entitled to all the profits he earns. 
D) The worker and the capitalist are both exploited by the government. 
A) Whoever controls a society's capital controls that society. 
B) By pursuing his own interest,a business owner frequently promotes that of the society more effectually than when he really intends to promote it. 
C) The capitalist,who has saved for years to buy his machinery and factory is entitled to all the profits he earns. 
D) The worker and the capitalist are both exploited by the government.

Which statement is true?

The circular flow model shows the relationships between

Under the old Soviet version of communism in the U.S.S.R. ,the questions of 'What?','How?',and 'For whom?' were answered by

The goals of equity and ________________ are sometimes in conflict.

The price system is based on the law of _________________.

The original source of capital is _________.

Statement I.Pollution is an example of market failure. Statement II.Externalities can be costs or benefits.

Private ownership of nearly all of a nation's land,labor,capital,and entrepreneurial ability is common to

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Which statement is the most accurate?

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: External costs are market failures,but external benefits are not. Statement II: The U.S.government provides the legal system under which our free enterprise economy can operate.

The U.S.distribution system is

The role of _______ in the production process is central to why our country is rich and most of the rest of the world is poor.

When we drive our cars,we incur not only a private cost,but also a(n)________ cost.

A four dollar tax on a gallon of gasoline would

In the year _______ the communist governments in eastern Europe were swept out of power.

In a pure capitalist economy,"what to produce" is determined by

Which statement is false?

Which statement most closely reflects the viewpoint of Karl Marx?

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

Which statement is true?

The circular flow model shows the relationships between

Under the old Soviet version of communism in the U.S.S.R. ,the questions of 'What?','How?',and 'For whom?' were answered by

The goals of equity and ________________ are sometimes in conflict.

The price system is based on the law of _________________.

The original source of capital is _________.

Statement I.Pollution is an example of market failure. Statement II.Externalities can be costs or benefits.

Private ownership of nearly all of a nation's land,labor,capital,and entrepreneurial ability is common to

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Which statement is the most accurate?

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: External costs are market failures,but external benefits are not. Statement II: The U.S.government provides the legal system under which our free enterprise economy can operate.

The U.S.distribution system is

The role of _______ in the production process is central to why our country is rich and most of the rest of the world is poor.

When we drive our cars,we incur not only a private cost,but also a(n)________ cost.

A four dollar tax on a gallon of gasoline would

In the year _______ the communist governments in eastern Europe were swept out of power.

In a pure capitalist economy,"what to produce" is determined by

Which statement is false?

Which statement most closely reflects the viewpoint of Karl Marx?

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