Question 1

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.

Question 2

Market failure means that

Accepted Answer

A) the law of supply and demand has stopped functioning. 
B) our resources are not allocated efficiently. 
C) the stock market has crashed. 
D) prices are no longer reliable indicators of how much things cost. 
A) the law of supply and demand has stopped functioning. 
B) our resources are not allocated efficiently. 
C) the stock market has crashed. 
D) prices are no longer reliable indicators of how much things cost.

Question 3

Statement I: Capitalism is based on trust.
Statement II: Capitalism is often confused with democracy.

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 4

There has been a marked reduction in air pollution since ________________.

Accepted Answer

The answer of There has been a marked reduction in...

Question 5

Raising taxes on gasoline __________ the price of gasoline and __________ the number of gallons purchased.

Accepted Answer

The answer of Raising taxes on gasoline __________ the price...

Question 6

Karl Marx wrote largely about

Accepted Answer

A) 19th century England. 
B) 18th century England. 
C) 19th century Russia. 
D) 18th century Russia. 
E) 18th and 19th century England and Russia. 
A) 19th century England. 
B) 18th century England. 
C) 19th century Russia. 
D) 18th century Russia. 
E) 18th and 19th century England and Russia.

Question 7

Statement I.We have market failure when our resources are not allocated efficiently.
Statement II.An oil refinery incurs both private and social (or external)costs.

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

Statement I: It is the role of government to ensure that property rights are protected,but not to interfere with minimizing any unpleasant side effects from pollution.
Statement II: The U.S.government must provide the infrastructure for a market system to function efficiently.

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 9

Modern mixed economies

Accepted Answer

A) generally alter the outcome of market processes in a manner that is believed to be in the social interest. 
B) attempt to redistribute income to make the distribution of income more equitable. 
C) rely on the government as well as the market to effect the distribution of goods and services. 
D) undertake all of the actions listeD. 
A) generally alter the outcome of market processes in a manner that is believed to be in the social interest. 
B) attempt to redistribute income to make the distribution of income more equitable. 
C) rely on the government as well as the market to effect the distribution of goods and services. 
D) undertake all of the actions listeD.

Question 10

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 11

The price mechanism

Accepted Answer

A) works best when many competing business firms are in each industry. 
B) works best when government through a central planning agency sets prices. 
C) works best when corporations set prices for a market economy. 
D) All of the choices are true about price mechanism. 
A) works best when many competing business firms are in each industry. 
B) works best when government through a central planning agency sets prices. 
C) works best when corporations set prices for a market economy. 
D) All of the choices are true about price mechanism.

Question 12

Which one of the following is a public good?

Accepted Answer

A) A toll road 
B) Conrail 
C) A local police department 
D) A rent-a-cop agency 
A) A toll road 
B) Conrail 
C) A local police department 
D) A rent-a-cop agency

Question 13

Which of the following statements is not true?

Accepted Answer

A) Our government ensures that competition flourishes,that information flows freely,and that property rights are protected. 
B) The price mechanism will work best if there are a enough firms in each industry to ensure that no one firm can influence price. 
C) Environmental pollution is considered a market failure. 
D) Everything produced by the public sector is a public gooD. 
A) Our government ensures that competition flourishes,that information flows freely,and that property rights are protected. 
B) The price mechanism will work best if there are a enough firms in each industry to ensure that no one firm can influence price. 
C) Environmental pollution is considered a market failure. 
D) Everything produced by the public sector is a public gooD.

Question 14

In the former Soviet Union distributing scarce consumer goods was accomplished by

Accepted Answer

A) higher prices which eliminated some potential consumers. 
B) making the consumer stand in a long line for hours if not days. 
C) the government simply printing more money. 
D) None of the choices are true. 
A) higher prices which eliminated some potential consumers. 
B) making the consumer stand in a long line for hours if not days. 
C) the government simply printing more money. 
D) None of the choices are true.

Question 15

Which statement is true?

Accepted Answer

A) American industry is very competitive. 
B) There is no competition in American industry. 
C) In order to have competition you need to have many firms in an industry. 
D) The automobile and computer software industries are good examples of competition at work. 
A) American industry is very competitive. 
B) There is no competition in American industry. 
C) In order to have competition you need to have many firms in an industry. 
D) The automobile and computer software industries are good examples of competition at work.

Question 16

Our government helps the free enterprise system work by doing all of the following,except

Accepted Answer

A) enforcing business contracts. 
B) using a central planning agency to direct the production process. 
C) defining property rights. 
D) lowering some of the barriers to competition. 
A) enforcing business contracts. 
B) using a central planning agency to direct the production process. 
C) defining property rights. 
D) lowering some of the barriers to competition.

Question 17

Karl Marx believed in all of the following,except

Accepted Answer

A) controlling political power was more important than controlling the ownership of capital with respect to dominating a society. 
B) in capitalist societies,a business owner makes huge profits by exploiting his workers. 
C) one's social consciousness was determined by one's relationship to the means of production. 
D) inevitably there would be a clash between capitalists and workers. 
A) controlling political power was more important than controlling the ownership of capital with respect to dominating a society. 
B) in capitalist societies,a business owner makes huge profits by exploiting his workers. 
C) one's social consciousness was determined by one's relationship to the means of production. 
D) inevitably there would be a clash between capitalists and workers.

Question 18

Which statement is false?

Accepted Answer

A) Under our economic system,most of the important decisions are made in the market place. 
B) In our economy the price mechanism determines the answers to our three basic questions-what,how,and for whom. 
C) Most economists would agree that the price system leads to a very efficient allocation of resources. 
D) None of these statements are false. 
A) Under our economic system,most of the important decisions are made in the market place. 
B) In our economy the price mechanism determines the answers to our three basic questions-what,how,and for whom. 
C) Most economists would agree that the price system leads to a very efficient allocation of resources. 
D) None of these statements are false.

Question 19

Which statement is true?

Accepted Answer

A) The communist system of state-owned enterprises in the Soviet Union was an example of pure communism. 
B) Aside from Cuba,Vietnam,North Korea,and a few other very small nations,there are no other communist powers left in the world. 
C) Mikhail Gorbachev still holds substantial power in Russia. 
D) None of the statements are true. 
A) The communist system of state-owned enterprises in the Soviet Union was an example of pure communism. 
B) Aside from Cuba,Vietnam,North Korea,and a few other very small nations,there are no other communist powers left in the world. 
C) Mikhail Gorbachev still holds substantial power in Russia. 
D) None of the statements are true.

Question 20

Karl Marx said the people who control a society are the people who

Accepted Answer

A) run the government. 
B) own the land. 
C) own the plant and equipment. 
D) work in the factories. 
A) run the government. 
B) own the land. 
C) own the plant and equipment. 
D) work in the factories.

All capitalist economies

Market failure means that

Statement I: Capitalism is based on trust. Statement II: Capitalism is often confused with democracy.

There has been a marked reduction in air pollution since ________________.

Raising taxes on gasoline the price of gasoline and the number of gallons purchased.

Karl Marx wrote largely about

Statement I.We have market failure when our resources are not allocated efficiently. Statement II.An oil refinery incurs both private and social (or external)costs.

Statement I: It is the role of government to ensure that property rights are protected,but not to interfere with minimizing any unpleasant side effects from pollution. Statement II: The U.S.government must provide the infrastructure for a market system to function efficiently.

Modern mixed economies

In a capitalist country most resources are owned by

The price mechanism

Which one of the following is a public good?

Which of the following statements is not true?

In the former Soviet Union distributing scarce consumer goods was accomplished by

Which statement is true?

Our government helps the free enterprise system work by doing all of the following,except

Karl Marx believed in all of the following,except

Which statement is false?

Which statement is true?

Karl Marx said the people who control a society are the people who

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

All capitalist economies

Market failure means that

Statement I: Capitalism is based on trust. Statement II: Capitalism is often confused with democracy.

There has been a marked reduction in air pollution since ________________.

Raising taxes on gasoline __________ the price of gasoline and __________ the number of gallons purchased.

Karl Marx wrote largely about

Statement I.We have market failure when our resources are not allocated efficiently. Statement II.An oil refinery incurs both private and social (or external)costs.

Statement I: It is the role of government to ensure that property rights are protected,but not to interfere with minimizing any unpleasant side effects from pollution. Statement II: The U.S.government must provide the infrastructure for a market system to function efficiently.

Modern mixed economies

In a capitalist country most resources are owned by

The price mechanism

Which one of the following is a public good?

Which of the following statements is not true?

In the former Soviet Union distributing scarce consumer goods was accomplished by

Which statement is true?

Our government helps the free enterprise system work by doing all of the following,except

Karl Marx believed in all of the following,except

Which statement is false?

Which statement is true?

Karl Marx said the people who control a society are the people who

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

Raising taxes on gasoline the price of gasoline and the number of gallons purchased.