Question 1

Karl Marx and Friedrich Engels believed that after the capitalists were overthrown,eventually

Accepted Answer

A) the state would get stronger. 
B) the state would wither away. 
C) the capitalists would regain power. 
D) a fascist state would emerge. 
A) the state would get stronger. 
B) the state would wither away. 
C) the capitalists would regain power. 
D) a fascist state would emerge.

Question 2

Statement I.Pollution is an example of a market failure.
Statement II.Mowing your lawn provides an external benefit.

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 3

Which of the following statements is not true?

Accepted Answer

A) Our government alters how resources are allocated in the economy by taxing,spending and issuing regulations. 
B) The price mechanism will work best if there are a limited number of firms in each industry. 
C) Lack of the provision of public goods is considered a market failure. 
D) Not everything produced by the public sector is a public gooD. 
A) Our government alters how resources are allocated in the economy by taxing,spending and issuing regulations. 
B) The price mechanism will work best if there are a limited number of firms in each industry. 
C) Lack of the provision of public goods is considered a market failure. 
D) Not everything produced by the public sector is a public gooD.

Question 4

Capital is _______________

Accepted Answer

A) the crucial element in every economic system. 
B) the key to every society's standard of living. 
C) the result from savings. 
D) All of these statements describe capital. 
A) the crucial element in every economic system. 
B) the key to every society's standard of living. 
C) the result from savings. 
D) All of these statements describe capital.

Question 5

In a centrally planned economy

Accepted Answer

A) consumers do not have to consider prices when shopping. 
B) prices are zero. 
C) the government sets prices and decides how much of each good is to be produced. 
D) producers have an incentive to produce those goods most desired by consumers at the lowest cost. 
A) consumers do not have to consider prices when shopping. 
B) prices are zero. 
C) the government sets prices and decides how much of each good is to be produced. 
D) producers have an incentive to produce those goods most desired by consumers at the lowest cost.

Question 6

Which statement is false?

Accepted Answer

A) Nearly all economists prefer incentive-based regulations to command-and-control regulations to curb pollution. 
B) Emissions trading originated as a result of the 1990 Amendments to the Clean Air Act. 
C) In most other economically advanced countries,gasoline taxes are much higher compared to the United States. 
D) Since the passage of the Clean Air Act in 1972,there has been very little improvement in air quality in the United States. 
A) Nearly all economists prefer incentive-based regulations to command-and-control regulations to curb pollution. 
B) Emissions trading originated as a result of the 1990 Amendments to the Clean Air Act. 
C) In most other economically advanced countries,gasoline taxes are much higher compared to the United States. 
D) Since the passage of the Clean Air Act in 1972,there has been very little improvement in air quality in the United States.

Question 7

Which of the following statements is true?

Accepted Answer

A) When the forces of supply and demand determine for whom goods are produced in a society,an equitable distribution of income will naturally result. 
B) An external benefit will occur when a third party enjoys some of the benefits derived from production of some good or service. 
C) One of the roles of our government is to provide a job to any able-bodied person who wants a job. 
D) The price mechanism will work well if there are at least two companies that are competing against each other. 
A) When the forces of supply and demand determine for whom goods are produced in a society,an equitable distribution of income will naturally result. 
B) An external benefit will occur when a third party enjoys some of the benefits derived from production of some good or service. 
C) One of the roles of our government is to provide a job to any able-bodied person who wants a job. 
D) The price mechanism will work well if there are at least two companies that are competing against each other.

Question 8

Which statement is false?

Accepted Answer

A) Throughout the 1980s,the Soviet Union devoted most of its capital and talent to its military establishment rather than to market reform. 
B) In the late 1970s,China began reforms,which eventually transformed it to a more market-oriented economy. 
C) Russia has been more successful than China in becoming a market-oriented economy. 
D) None of the above statements are false. 
A) Throughout the 1980s,the Soviet Union devoted most of its capital and talent to its military establishment rather than to market reform. 
B) In the late 1970s,China began reforms,which eventually transformed it to a more market-oriented economy. 
C) Russia has been more successful than China in becoming a market-oriented economy. 
D) None of the above statements are false.

Question 9

The famous phrase "the invisible hand" is associated with the economist ______________ ___________.

Accepted Answer

The answer of The famous phrase "the invisible hand" is...

Question 10

The economist who argued that most prices in our mixed economy are set by the nation's largest corporations was

Accepted Answer

A) Adam Smith 
B) Karl Marx 
C) John Maynard Keynes 
D) John Kenneth Galbraith 
A) Adam Smith 
B) Karl Marx 
C) John Maynard Keynes 
D) John Kenneth Galbraith

Question 11

The main reason the American factory worker can produce more than the Brazilian factory worker is that they

Accepted Answer

A) are equipped with better capital. 
B) have more capital with which to work. 
C) are equipped with better capital AND have more capital with which to work. 
D) Neither of these reasons are true. 
A) are equipped with better capital. 
B) have more capital with which to work. 
C) are equipped with better capital AND have more capital with which to work. 
D) Neither of these reasons are true.

Question 12

Which of the following is a typical attribute of a socialist country?

Accepted Answer

A) Taxes are very high,particularly on the wealthy classes. 
B) Government owns some of the means of production. 
C) Cradle-to-grave security for its citizens. 
D) A large-scale redistribution of income program from the wealthy and well-to-do to the middle class,working,class and the poor. 
E) All of the choices are attributes of a socialist country. 
A) Taxes are very high,particularly on the wealthy classes. 
B) Government owns some of the means of production. 
C) Cradle-to-grave security for its citizens. 
D) A large-scale redistribution of income program from the wealthy and well-to-do to the middle class,working,class and the poor. 
E) All of the choices are attributes of a socialist country.

Question 13

An external benefit occurs when

Accepted Answer

A) some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party. 
B) the production or consumption of some good or service inflicts costs on a third party without compensation. 
C) private costs exceed social costs. 
D) private benefits exceed private benefits. 
A) some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party. 
B) the production or consumption of some good or service inflicts costs on a third party without compensation. 
C) private costs exceed social costs. 
D) private benefits exceed private benefits.

Question 14

Having the government issue permits that allow polluting

Accepted Answer

A) would increase the levels of pollution. 
B) is a measure used all over the world,but not in the United States. 
C) would allow companies that are better at curbing their pollution to sell the permits to companies that are not as good at curbing their pollution. 
D) has been very ineffective in curbing pollution. 
A) would increase the levels of pollution. 
B) is a measure used all over the world,but not in the United States. 
C) would allow companies that are better at curbing their pollution to sell the permits to companies that are not as good at curbing their pollution. 
D) has been very ineffective in curbing pollution.

Question 15

Under a communist system,

Accepted Answer

A) consumer decisions are not influenced by prices. 
B) resources are owned and controlled by the government. 
C) individual freedom is maximized. 
D) the market guides resources,but the state dictates what should be produceD. 
A) consumer decisions are not influenced by prices. 
B) resources are owned and controlled by the government. 
C) individual freedom is maximized. 
D) the market guides resources,but the state dictates what should be produceD.

Question 16

The nation closest to a centrally planned,socialist economy is

Accepted Answer

A) ChinA. 
B) Japan. 
C) the United States. 
D) Norway. 
A) ChinA. 
B) Japan. 
C) the United States. 
D) Norway.

Question 17

Characteristics of the "invisible hand" concept include all of the following,except

Accepted Answer

A) Simple markets. 
B) Individuals and firms pursue their own self-interest without any central direction or regulation. 
C) A complete lack of government involvement in the economy. 
D) All of the choices are characteristics of the "invisible-hanD." 
A) Simple markets. 
B) Individuals and firms pursue their own self-interest without any central direction or regulation. 
C) A complete lack of government involvement in the economy. 
D) All of the choices are characteristics of the "invisible-hanD."

Question 18

Today,__________ leads the world with more than 800 million cell phone users.

Accepted Answer

A) the United States 
B) China 
C) Japan 
D) Canada 
A) the United States 
B) China 
C) Japan 
D) Canada

Question 19

To have competition as economists define it,

Accepted Answer

A) you need many firms in an industry,with no one firm having any influence over price. 
B) you need a couple of firms in the industry,with each having significant influence over the price. 
C) you need many firms in an industry,and it doesn't matter if one firm has influence over price. 
D) All of these statements are true. 
A) you need many firms in an industry,with no one firm having any influence over price. 
B) you need a couple of firms in the industry,with each having significant influence over the price. 
C) you need many firms in an industry,and it doesn't matter if one firm has influence over price. 
D) All of these statements are true.

Question 20

Which one of the following is NOT a government failure?

Accepted Answer

A) The "bridge to nowhere" in Alaska 
B) The FEMA reaction to Hurricane Katrina 
C) Allowing federal budget deficits to be financed by foreigners while calling for further tax cuts to help incumbent politicians get reelected 
D) Water pollution 
A) The "bridge to nowhere" in Alaska 
B) The FEMA reaction to Hurricane Katrina 
C) Allowing federal budget deficits to be financed by foreigners while calling for further tax cuts to help incumbent politicians get reelected 
D) Water pollution

Karl Marx and Friedrich Engels believed that after the capitalists were overthrown,eventually

Statement I.Pollution is an example of a market failure. Statement II.Mowing your lawn provides an external benefit.

Which of the following statements is not true?

Capital is _______________

In a centrally planned economy

Which statement is false?

Which of the following statements is true?

Which statement is false?

The famous phrase "the invisible hand" is associated with the economist ____ _.

The economist who argued that most prices in our mixed economy are set by the nation's largest corporations was

The main reason the American factory worker can produce more than the Brazilian factory worker is that they

Which of the following is a typical attribute of a socialist country?

An external benefit occurs when

Having the government issue permits that allow polluting

Under a communist system,

The nation closest to a centrally planned,socialist economy is

Characteristics of the "invisible hand" concept include all of the following,except

Today,__________ leads the world with more than 800 million cell phone users.

To have competition as economists define it,

Which one of the following is NOT a government failure?

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

Karl Marx and Friedrich Engels believed that after the capitalists were overthrown,eventually

Statement I.Pollution is an example of a market failure. Statement II.Mowing your lawn provides an external benefit.

Which of the following statements is not true?

Capital is _______________

In a centrally planned economy

Which statement is false?

Which of the following statements is true?

Which statement is false?

The famous phrase "the invisible hand" is associated with the economist ______________ ___________.

The economist who argued that most prices in our mixed economy are set by the nation's largest corporations was

The main reason the American factory worker can produce more than the Brazilian factory worker is that they

Which of the following is a typical attribute of a socialist country?

An external benefit occurs when

Having the government issue permits that allow polluting

Under a communist system,

The nation closest to a centrally planned,socialist economy is

Characteristics of the "invisible hand" concept include all of the following,except

Today,__________ leads the world with more than 800 million cell phone users.

To have competition as economists define it,

Which one of the following is NOT a government failure?

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

The famous phrase "the invisible hand" is associated with the economist ____ _.