Exam 3: The Mixed Economy

Statement I.The circular flow model traces the flow of money,resources,and goods and services through the economy. Statement II.Most household income is spent on investment or capital goods.

Suppose a business firm dumps its used car batteries into the Mississippi River.

In the mid-1980s,in which communist country did the credo change from "From each according to his ability,to each according to his needs" to "More pay for more work,less pay for less work"?

According to most economists,

To allow the price mechanism to work,no one business firm should be large enough to have an ____________________.

A $3 increase in the federal gasoline tax would

Each of these is a basic characteristic of a capitalist economy,except

Who said,"Property is the exploitation of the weak by the strong.Communism is the exploitation of the strong by the weak"?

What is a mixed economy?

Statement I.Under our economic system the most important decisions are made in the marketplace. Statement II.Most economists would agree that the price system leads to a very efficient allocation of resources.

If a nation starts out with very little capital

Which is true about the means of production?

Adam Smith believed that people are guided by

As an economy modernizes and its standard of living rises,the proportion of transactions conducted with barter

Statement I.In the United States,the economic role of the government is played almost entirely at the federal level. Statement II.The outcomes of each of the three basic economic questions are affected by government actions.

Capitalism is based on all of the following except

Statement I.Adam Smith believed the federal government should play a larger role in the economy. Statement II.Adam Smith said that a person pursuing his own interest "frequently promotes that of society more effectually than when he really intends to promote it."

In the United States and in most other developed capitalist economies,the government

Which of the following is NOT an attribute of a public good?

The invisible hand is closely related to each of the following,except