Question 1

Which of the following economic functions does the U.S. government perform?

Accepted Answer

A) Collects taxes 
B) Provides services 
C) Issues regulations 
D) The U.S.government performs all of these tasks 
A) Collects taxes 
B) Provides services 
C) Issues regulations 
D) The U.S.government performs all of these tasks D

Question 2

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. A

Question 3

Statement I. The circular flow model oversimplifies the exchanges in our economy. Statement II. Most of the money received by households in the form of wages, rent, interest, and profits flows back to business firms in the form of consumer expenditures.

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. C

Question 4

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

Accepted Answer

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

Question 5

Adam Smith

Accepted Answer

A) was a Scottish professor of philosophy. 
B) wrote The Wealth of Nations. 
C) said that the entrepreneur is motivated by self-interest. 
D) coined the term "the invisible hand," which means that the profit motive guides economic resources which effectively promotes the public interest. 
E) All of the statements about Adam Smith are true. 
A) was a Scottish professor of philosophy. 
B) wrote The Wealth of Nations. 
C) said that the entrepreneur is motivated by self-interest. 
D) coined the term "the invisible hand," which means that the profit motive guides economic resources which effectively promotes the public interest. 
E) All of the statements about Adam Smith are true.

Question 6

In the former Soviet Union most of the farmland was in the form of ____________________.

Accepted Answer

The answer of In the former Soviet Union most of...

Question 7

Adam Smith

Accepted Answer

A) argued that capitalism is often confused with democracy. 
B) wrote Das Kapital. 
C) said that the entrepreneur is motivated by self-interest. 
D) coined the phrase: "From each according to his ability, to each according to his needs." 
A) argued that capitalism is often confused with democracy. 
B) wrote Das Kapital. 
C) said that the entrepreneur is motivated by self-interest. 
D) coined the phrase: "From each according to his ability, to each according to his needs."

Question 8

Karl Marx believed that inevitably there would be a clash between ____________ and ____________, leading to an overthrow of capitalism.

Accepted Answer

capitalist

Question 9

If a nation starts out with very little capital

Accepted Answer

A) it can increase its capital if it is able to divert productive resources from producing consumer goods to producing capital goods. 
B) the process of diverting some resources from producing consumer goods to producing capital goods will most likely be quite painful. 
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) All of the choices are true. 
A) it can increase its capital if it is able to divert productive resources from producing consumer goods to producing capital goods. 
B) the process of diverting some resources from producing consumer goods to producing capital goods will most likely be quite painful. 
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) All of the choices are true.

Question 10

The Chinese economy was set back by

Accepted Answer

A) the Great Leap Forward, but not the Cultural Revolution. 
B) the Cultural Revolution, but not the Great Leap Forward. 
C) both the Cultural Revolution and the Great Leap Forward. 
D) neither the Cultural Revolution nor the Great Leap Forward. 
A) the Great Leap Forward, but not the Cultural Revolution. 
B) the Cultural Revolution, but not the Great Leap Forward. 
C) both the Cultural Revolution and the Great Leap Forward. 
D) neither the Cultural Revolution nor the Great Leap Forward.

Question 11

Karl Marx said that whoever controlled a society's __________ controlled that society.

Accepted Answer

plant and equipment

Question 12

If we were to examine the economic record of the former Soviet Union and China during the 1980s, we could reasonably conclude that

Accepted Answer

A) China was successful and the Soviet Union was not. 
B) The Soviet Union was successful and China was not. 
C) Both the Soviet Union and China were successful. 
D) Neither China nor the Soviet Union were successful. 
A) China was successful and the Soviet Union was not. 
B) The Soviet Union was successful and China was not. 
C) Both the Soviet Union and China were successful. 
D) Neither China nor the Soviet Union were successful.

Question 13

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 14

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

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

Which statement is the most accurate?

Accepted Answer

A) Ordering a pencil for work in a communist economy usually is less complicated than the same process in a capitalist economy. 
B) Rules and regulations bind Communist bureaucrats because there is no trust that a bureaucrat can make simple business decisions. 
C) Because of underlying trust, business flows smoothly in virtually all communist societies. 
D) Ordering a pencil for work is equally complicated in a capitalist and a communist business. 
A) Ordering a pencil for work in a communist economy usually is less complicated than the same process in a capitalist economy. 
B) Rules and regulations bind Communist bureaucrats because there is no trust that a bureaucrat can make simple business decisions. 
C) Because of underlying trust, business flows smoothly in virtually all communist societies. 
D) Ordering a pencil for work is equally complicated in a capitalist and a communist business.

Question 17

The government performs each of the following economic functions except

Accepted Answer

A) collecting taxes. 
B) spending. 
C) issuing regulations. 
D) operating the price mechanism. 
A) collecting taxes. 
B) spending. 
C) issuing regulations. 
D) operating the price mechanism.

Question 18

How many households receive their incomes mainly from the business sector?

Accepted Answer

A) 300 million 
B) 117 million 
C) 50 million 
D) 39 million 
A) 300 million 
B) 117 million 
C) 50 million 
D) 39 million

Question 19

Lack of the provision of public goods is considered a ______________ _____________.

Accepted Answer

The answer of Lack of the provision of public goods...

Question 20

Which one of the following is not a mixed economy?

Accepted Answer

A) United States 
B) China 
C) Japan 
D) Sweden 
E) All of the countries listed are mixed economies. 
A) United States 
B) China 
C) Japan 
D) Sweden 
E) All of the countries listed are mixed economies.

Which of the following economic functions does the U.S. government perform?

Which statement most closely reflects the viewpoint of Karl Marx?

Statement I. The circular flow model oversimplifies the exchanges in our economy. Statement II. Most of the money received by households in the form of wages, rent, interest, and profits flows back to business firms in the form of consumer expenditures.

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

Adam Smith

In the former Soviet Union most of the farmland was in the form of ____________________.

Adam Smith

Karl Marx believed that inevitably there would be a clash between and , leading to an overthrow of capitalism.

If a nation starts out with very little capital

The Chinese economy was set back by

Karl Marx said that whoever controlled a society's __________ controlled that society.

If we were to examine the economic record of the former Soviet Union and China during the 1980s, we could reasonably conclude that

Which of the following statements is true?

Which one of the following is NOT a government failure?

Which statement is true?

Which statement is the most accurate?

The government performs each of the following economic functions except

How many households receive their incomes mainly from the business sector?

Lack of the provision of public goods is considered a __ _.

Which one of the following is not a mixed economy?

A Brief Economic History of the United States

Resource Utilization

Supply and Demand

Demand, Supply, and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, Loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, Interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

Exam 3: The Mixed Economy

Which of the following economic functions does the U.S. government perform?

Which statement most closely reflects the viewpoint of Karl Marx?

Statement I. The circular flow model oversimplifies the exchanges in our economy. Statement II. Most of the money received by households in the form of wages, rent, interest, and profits flows back to business firms in the form of consumer expenditures.

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

Adam Smith

In the former Soviet Union most of the farmland was in the form of ____________________.

Adam Smith

Karl Marx believed that inevitably there would be a clash between ____________ and ____________, leading to an overthrow of capitalism.

If a nation starts out with very little capital

The Chinese economy was set back by

Karl Marx said that whoever controlled a society's __________ controlled that society.

If we were to examine the economic record of the former Soviet Union and China during the 1980s, we could reasonably conclude that

Which of the following statements is true?

Which one of the following is NOT a government failure?

Which statement is true?

Which statement is the most accurate?

The government performs each of the following economic functions except

How many households receive their incomes mainly from the business sector?

Lack of the provision of public goods is considered a ______________ _____________.

Which one of the following is not a mixed economy?

A Brief Economic History of the United States

Resource Utilization

Supply and Demand

Demand, Supply, and Equilibrium

The Price Elasticities of Demand and Supply

Theory of Consumer Behavior

Cost

Profit, Loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, Interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

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

Karl Marx believed that inevitably there would be a clash between and , leading to an overthrow of capitalism.

Lack of the provision of public goods is considered a __ _.