Question 1

Economist John Kenneth Galbraith has argued that most prices in our mixed economy are set by

Accepted Answer

A) a government planning committee. 
B) the invisible hand. 
C) the nation's largest corporations. 
D) consumers voting with their dollars. 
A) a government planning committee. 
B) the invisible hand. 
C) the nation's largest corporations. 
D) consumers voting with their dollars.

Question 2

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 3

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

Accepted Answer

influence

Question 4

Statement I: Nearly all economists prefer command-and-control to incentive-based regulations to curb pollution. Statement II: Voting for a $4 per gallon tax on gasoline would be political suicide for most of our Representatives and Senators.

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 5

If large sectors of American industry are not very competitive, then the _______________ does not work as well as it could if American industry operated under a more perfectly competitive system.

Accepted Answer

price mech

Question 6

According to most economists,

Accepted Answer

A) command-and-control regulations work better than incentive-based regulations. 
B) incentive-based regulations work better than command-and-control regulations. 
C) command-and-control regulations have about the same effectiveness as incentive-based regulations. 
A) command-and-control regulations work better than incentive-based regulations. 
B) incentive-based regulations work better than command-and-control regulations. 
C) command-and-control regulations have about the same effectiveness as incentive-based regulations.

Question 7

Karl Marx believed the central figures in an industrial economy were the

Accepted Answer

A) labor union leaders. 
B) heads of the ruling political party. 
C) capitalists. 
D) stock market speculators. 
E) farmers. 
A) labor union leaders. 
B) heads of the ruling political party. 
C) capitalists. 
D) stock market speculators. 
E) farmers.

Question 8

If a nation starts out with very little capital

Accepted Answer

A) it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods. 
B) it can quite easily divert some resources from producing consumer goods to producing capital goods. 
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) None of the choices are true. 
A) it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods. 
B) it can quite easily divert some resources from producing consumer goods to producing capital goods. 
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) None of the choices are true.

Question 9

The invisible hand is

Accepted Answer

A) Perfect competition. 
B) The profit motive. 
C) Government direction. 
D) The mixed economy. 
A) Perfect competition. 
B) The profit motive. 
C) Government direction. 
D) The mixed economy.

Question 10

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 11

Lowering the level of pollution to very close to zero would

Accepted Answer

A) raise our standard of living. 
B) have little effect on our standard of living. 
C) lower our standard of living. 
A) raise our standard of living. 
B) have little effect on our standard of living. 
C) lower our standard of living.

Question 12

Each of the following is a characteristic of socialism, except

Accepted Answer

A) prohibition of any private ownership of the means of production. 
B) a substantial degree of government planning. 
C) a large-scale redistribution of income. 
D) government ownership of some of the means of production. 
A) prohibition of any private ownership of the means of production. 
B) a substantial degree of government planning. 
C) a large-scale redistribution of income. 
D) government ownership of some of the means of production.

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 cost will occur when some of the benefits derived from production of some good or service are enjoyed by a third party. 
C) One of the roles of our government is to transfer some income from the rich and the middle class to the poor. 
D) According to most economists' definition of competition, the American economy is very competitive. 
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 cost will occur when some of the benefits derived from production of some good or service are enjoyed by a third party. 
C) One of the roles of our government is to transfer some income from the rich and the middle class to the poor. 
D) According to most economists' definition of competition, the American economy is very competitive.

Question 14

In Sweden

Accepted Answer

A) the government has kept unemployment low by offering industry and workers a series of subsidies and incentives. 
B) education is free from nursery school through college. 
C) women may take a year off work after child birth while receiving 80 percent of their pay. 
D) All of the choices are true. 
A) the government has kept unemployment low by offering industry and workers a series of subsidies and incentives. 
B) education is free from nursery school through college. 
C) women may take a year off work after child birth while receiving 80 percent of their pay. 
D) All of the choices are true.

Question 15

The price system

Accepted Answer

A) sends signals to producers. 
B) sends signals to consumers. 
C) is based on supply and demand. 
D) All of the choices are true about the price system. 
A) sends signals to producers. 
B) sends signals to consumers. 
C) is based on supply and demand. 
D) All of the choices are true about the price system.

Question 16

Which one of these is not a characteristic of capitalism?

Accepted Answer

A) Central planning 
B) Private property 
C) The price mechanism 
D) Competition 
A) Central planning 
B) Private property 
C) The price mechanism 
D) Competition

Question 17

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.

Question 18

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 19

An economy that has a private sector and a public sector is called a _____________.

Accepted Answer

The answer of An economy that has a private sector...

Question 20

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"?

Accepted Answer

A) The Soviet Union 
B) Vietnam 
C) Cuba 
D) China 
A) The Soviet Union 
B) Vietnam 
C) Cuba 
D) China

Economist John Kenneth Galbraith has argued that most prices in our mixed economy are set by

In a centrally planned economy

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

Statement I: Nearly all economists prefer command-and-control to incentive-based regulations to curb pollution. Statement II: Voting for a $4 per gallon tax on gasoline would be political suicide for most of our Representatives and Senators.

If large sectors of American industry are not very competitive, then the _______________ does not work as well as it could if American industry operated under a more perfectly competitive system.

According to most economists,

Karl Marx believed the central figures in an industrial economy were the

If a nation starts out with very little capital

The invisible hand is

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

Lowering the level of pollution to very close to zero would

Each of the following is a characteristic of socialism, except

Which of the following statements is true?

In Sweden

The price system

Which one of these is not a characteristic of capitalism?

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

The U.S. distribution system is

An economy that has a private sector and a public sector is called a _____________.

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"?

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

Economist John Kenneth Galbraith has argued that most prices in our mixed economy are set by

In a centrally planned economy

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

Statement I: Nearly all economists prefer command-and-control to incentive-based regulations to curb pollution. Statement II: Voting for a $4 per gallon tax on gasoline would be political suicide for most of our Representatives and Senators.

If large sectors of American industry are not very competitive, then the _______________ does not work as well as it could if American industry operated under a more perfectly competitive system.

According to most economists,

Karl Marx believed the central figures in an industrial economy were the

If a nation starts out with very little capital

The invisible hand is

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

Lowering the level of pollution to very close to zero would

Each of the following is a characteristic of socialism, except

Which of the following statements is true?

In Sweden

The price system

Which one of these is not a characteristic of capitalism?

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

The U.S. distribution system is

An economy that has a private sector and a public sector is called a _____________.

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"?

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