Question 1

Karl Marx and Friedrich Engels believed that the ideal communist society would come about when

Accepted Answer

A) the state withered away. 
B) the state gained control of the economy's means of production. 
C) there was private ownership of the means of production. 
D) all large corporations remained in private hands, but were regulated by the government. 
A) the state withered away. 
B) the state gained control of the economy's means of production. 
C) there was private ownership of the means of production. 
D) all large corporations remained in private hands, but were regulated by the government.

Question 2

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

Accepted Answer

A) rises. 
B) falls. 
C) remains about the same. 
A) rises. 
B) falls. 
C) remains about the same.

Question 3

According to most economists, which one of the following would be the best public policy?

Accepted Answer

A) Require businesses to reduce pollution by a level prescribed by the government. 
B) Zero tolerance for pollution. 
C) Rely on private enterprise to reduce pollution as it is ultimately in its best interest. 
D) Provide business firms with incentives to curb their pollution. 
A) Require businesses to reduce pollution by a level prescribed by the government. 
B) Zero tolerance for pollution. 
C) Rely on private enterprise to reduce pollution as it is ultimately in its best interest. 
D) Provide business firms with incentives to curb their pollution.

Question 4

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Accepted Answer

make a profit, or th

Question 5

Cradle-to-grave security is most common in ___________ countries.

Accepted Answer

A) Capitalist 
B) Communist 
C) Socialist 
D) Fascist 
A) Capitalist 
B) Communist 
C) Socialist 
D) Fascist

Question 6

The theory of the communists could be summed up in a single phrase: _____________________________.

Accepted Answer

the abolit

Question 7

Statement I: In a centrally planned economy the government sets the prices and decides how much of each good is to be produced. Statement II: In a market economy, the interaction of buyers and sellers sets prices and determines how much of each good is to be produced.

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

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 9

Which statement is true?

Accepted Answer

A) Our economic system leads to an equitable distribution of income. 
B) One of the basic functions of our government is to transfer some income from the rich and the middle class to the poor. 
C) The price mechanism and the definition of economics are incompatible. 
D) None of the statements are true. 
A) Our economic system leads to an equitable distribution of income. 
B) One of the basic functions of our government is to transfer some income from the rich and the middle class to the poor. 
C) The price mechanism and the definition of economics are incompatible. 
D) None of the statements are true.

Question 10

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 11

Statement I: Most Americans would be willing to give up driving to reduce auto emissions to zero. Statement II: Trading in pollution permits is banned on the Chicago Board of Trade but has flourished on the black market.

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 12

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 13

If a person wanted to raise some capital and was unable to borrow it, they could either ________ or ________.

Accepted Answer

cut back o

Question 14

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.

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 15

Which is the most accurate statement?

Accepted Answer

A) There is no real competition in the American economy. 
B) To allow the price mechanism to work we need many competing firms in each industry. 
C) The forces of supply and demand do not operate in our economy. 
D) The price mechanism functions perfectly in our economy. 
A) There is no real competition in the American economy. 
B) To allow the price mechanism to work we need many competing firms in each industry. 
C) The forces of supply and demand do not operate in our economy. 
D) The price mechanism functions perfectly in our economy.

Question 16

Which statement is most accurate?

Accepted Answer

A) By the mid 1980s, over 90 percent of China's agricultural land was farmed by private households. 
B) China has virtually no private sector. 
C) Although China's agricultural sector is market oriented, its industrial sector still uses the communist model. 
D) China's economy is almost entirely privately owned. 
A) By the mid 1980s, over 90 percent of China's agricultural land was farmed by private households. 
B) China has virtually no private sector. 
C) Although China's agricultural sector is market oriented, its industrial sector still uses the communist model. 
D) China's economy is almost entirely privately owned.

Question 17

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 18

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 19

China embarked on a large-scale privatization since ___________.

Accepted Answer

The answer of China embarked on a large-scale privatization since...

Question 20

Which is true about the means of production?

Accepted Answer

A) Under capitalism it is privately owned, and under fascism it is owned by the government. 
B) Under fascism it is privately owned, and under capitalism it is owned by the government. 
C) Under both capitalism and fascism it is owned by the government. 
D) Under capitalism and fascism it is privately owned. 
A) Under capitalism it is privately owned, and under fascism it is owned by the government. 
B) Under fascism it is privately owned, and under capitalism it is owned by the government. 
C) Under both capitalism and fascism it is owned by the government. 
D) Under capitalism and fascism it is privately owned.

Karl Marx and Friedrich Engels believed that the ideal communist society would come about when

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

According to most economists, which one of the following would be the best public policy?

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Cradle-to-grave security is most common in ___________ countries.

The theory of the communists could be summed up in a single phrase: _____________________________.

Statement I: In a centrally planned economy the government sets the prices and decides how much of each good is to be produced. Statement II: In a market economy, the interaction of buyers and sellers sets prices and determines how much of each good is to be produced.

Which statement is false?

Which statement is true?

Which statement is false?

Statement I: Most Americans would be willing to give up driving to reduce auto emissions to zero. Statement II: Trading in pollution permits is banned on the Chicago Board of Trade but has flourished on the black market.

All capitalist economies

If a person wanted to raise some capital and was unable to borrow it, they could either or .

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.

Which is the most accurate statement?

Which statement is most accurate?

Market failure means that

In a capitalist country most resources are owned by

China embarked on a large-scale privatization since ___________.

Which is true about the means of production?

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

Karl Marx and Friedrich Engels believed that the ideal communist society would come about when

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

According to most economists, which one of the following would be the best public policy?

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Cradle-to-grave security is most common in ___________ countries.

The theory of the communists could be summed up in a single phrase: _____________________________.

Statement I: In a centrally planned economy the government sets the prices and decides how much of each good is to be produced. Statement II: In a market economy, the interaction of buyers and sellers sets prices and determines how much of each good is to be produced.

Which statement is false?

Which statement is true?

Which statement is false?

Statement I: Most Americans would be willing to give up driving to reduce auto emissions to zero. Statement II: Trading in pollution permits is banned on the Chicago Board of Trade but has flourished on the black market.

All capitalist economies

If a person wanted to raise some capital and was unable to borrow it, they could either ________ or ________.

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.

Which is the most accurate statement?

Which statement is most accurate?

Market failure means that

In a capitalist country most resources are owned by

China embarked on a large-scale privatization since ___________.

Which is true about the means of production?

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

If a person wanted to raise some capital and was unable to borrow it, they could either or .