Question 1

Which of the following is NOT an example of a command-and-control regulation to limit pollution?

Accepted Answer

A) Fuel economy standards for all new cars 
B) A 50-cent tax on gasoline 
C) Mandating the use of catalytic converters on all new vehicles 
D) A ban on leaded gasoline 
A) Fuel economy standards for all new cars 
B) A 50-cent tax on gasoline 
C) Mandating the use of catalytic converters on all new vehicles 
D) A ban on leaded gasoline

Question 2

A socialist economy is characterized by

Accepted Answer

A) an extensive reliance on markets to allocate final goods and services. 
B) an extensive reliance on the profit motive to govern resource allocation decisions. 
C) elimination of the problem of scarcity since all basic necessities are available to all citizens. 
D) public ownership of productive resources. 
E) high levels of unemployment and inflation. 
A) an extensive reliance on markets to allocate final goods and services. 
B) an extensive reliance on the profit motive to govern resource allocation decisions. 
C) elimination of the problem of scarcity since all basic necessities are available to all citizens. 
D) public ownership of productive resources. 
E) high levels of unemployment and inflation.

Question 3

Hitler's Germany was an example of a _________ economic system.

Accepted Answer

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

Question 4

The central institution through which a laissez-faire system answers the basic economic questions is the

Accepted Answer

A) tribal council. 
B) market. 
C) government. 
D) central planning body. 
A) tribal council. 
B) market. 
C) government. 
D) central planning body.

Question 5

In the circular flow model, businesses

Accepted Answer

A) demand both products and resources. 
B) supply both products and resources. 
C) demand products and supply resources. 
D) supply products and demand resources. 
A) demand both products and resources. 
B) supply both products and resources. 
C) demand products and supply resources. 
D) supply products and demand resources.

Question 6

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 7

Statement I. Under fascism, the government owns the means of production. Statement II. Nearly one-third of the world's countries may be described as fascist.

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

__________________ is an obvious example of government failure.

Accepted Answer

A) The immensely complex and confusing U.S.income tax system 
B) The numerous forms the government sends all large and most medium-sized companies 
C) The perplexing Medicare drug prescription plan 
D) All of these statements are government failures. 
A) The immensely complex and confusing U.S.income tax system 
B) The numerous forms the government sends all large and most medium-sized companies 
C) The perplexing Medicare drug prescription plan 
D) All of these statements are government failures.

Question 9

Karl Marx

Accepted Answer

A) believed that the state would eventually "wither away." 
B) wrote Das Kapital. 
C) believed that the factory owner, by paying his workers meager wages, was able to use this surplus to buy more capital goods. 
D) said whoever controlled a society's capital controlled that society. 
E) all of the statements about Karl Marx are true. 
A) believed that the state would eventually "wither away." 
B) wrote Das Kapital. 
C) believed that the factory owner, by paying his workers meager wages, was able to use this surplus to buy more capital goods. 
D) said whoever controlled a society's capital controlled that society. 
E) all of the statements about Karl Marx are true.

Question 10

Mao Tse-tung was responsible for

Accepted Answer

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

Question 11

By the late 1970s,

Accepted Answer

A) Russia began reforms which eventually transformed it to a more market-oriented economy. 
B) China began reforms which eventually transformed it to a more market-oriented economy. 
C) Russia and China were both quickly becoming market-oriented economies. 
D) None of the choices are true. 
A) Russia began reforms which eventually transformed it to a more market-oriented economy. 
B) China began reforms which eventually transformed it to a more market-oriented economy. 
C) Russia and China were both quickly becoming market-oriented economies. 
D) None of the choices are true.

Question 12

Which description of capitalism was coined by Karl Marx?

Accepted Answer

A) The capitalist is led by an invisible hand to promote an end which was no part of his intention. 
B) By pursing his own interest he frequently promotes that of the society more effectively than when he really intends to promote it. 
C) The factory owner, by paying his workers meager wages, is able to use this surplus to buy more capital goods. 
D) None of these statements were coined by Karl Marx. 
A) The capitalist is led by an invisible hand to promote an end which was no part of his intention. 
B) By pursing his own interest he frequently promotes that of the society more effectively than when he really intends to promote it. 
C) The factory owner, by paying his workers meager wages, is able to use this surplus to buy more capital goods. 
D) None of these statements were coined by Karl Marx.

Question 13

An external cost 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 costs 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 costs exceed private benefits.

Question 14

Which statement is true?

Accepted Answer

A) Private business firms are illegal in China. 
B) In China today, there is strict adherence to the communist credo, "From each according to his ability, to each according to his needs." 
C) Major economic reforms in China in the late 1970s and early 1980s created a much more market oriented economy than a centrally planned one. 
D) None of the statements are true. 
A) Private business firms are illegal in China. 
B) In China today, there is strict adherence to the communist credo, "From each according to his ability, to each according to his needs." 
C) Major economic reforms in China in the late 1970s and early 1980s created a much more market oriented economy than a centrally planned one. 
D) None of the statements are true.

Question 15

Sweden and Norway are usually described as ________________ economies.

Accepted Answer

The answer of Sweden and Norway are usually described as...

Question 16

A ______ good is something whose consumption by one person does not prevent its consumption by other people.

Accepted Answer

The answer of A ______ good is something whose consumption...

Question 17

A public good is

Accepted Answer

A) a good deed done by someone who refuses payment. 
B) something produced as sold by the government, for example, electricity provided by the Tennessee Valley Authority. 
C) something whose consumption by one person does not prevent its consumption by other people. 
D) something that is good for our country, but not necessarily for private individuals. 
A) a good deed done by someone who refuses payment. 
B) something produced as sold by the government, for example, electricity provided by the Tennessee Valley Authority. 
C) something whose consumption by one person does not prevent its consumption by other people. 
D) something that is good for our country, but not necessarily for private individuals.

Question 18

European communism collapsed during the years

Accepted Answer

A) 1969-1971. 
B) 1974-1976. 
C) 1979-1981. 
D) 1984-1986. 
E) 1989-1991. 
A) 1969-1971. 
B) 1974-1976. 
C) 1979-1981. 
D) 1984-1986. 
E) 1989-1991.

Question 19

One out of every ____ people on this planet lives in China.

Accepted Answer

The answer of One out of every ____ people on...

Question 20

Which statement is true?

Accepted Answer

A) The communist system of state-owned enterprises in the Soviet Union was an example of pure communism. 
B) Aside from Cuba, Vietnam, North Korea, and a few other very small nations, there are no other communist powers left in the world. 
C) Mikhail Gorbachev still holds substantial power in Russia. 
D) None of the statements are true. 
A) The communist system of state-owned enterprises in the Soviet Union was an example of pure communism. 
B) Aside from Cuba, Vietnam, North Korea, and a few other very small nations, there are no other communist powers left in the world. 
C) Mikhail Gorbachev still holds substantial power in Russia. 
D) None of the statements are true.

Which of the following is NOT an example of a command-and-control regulation to limit pollution?

A socialist economy is characterized by

Hitler's Germany was an example of a _________ economic system.

The central institution through which a laissez-faire system answers the basic economic questions is the

In the circular flow model, businesses

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

Statement I. Under fascism, the government owns the means of production. Statement II. Nearly one-third of the world's countries may be described as fascist.

__________________ is an obvious example of government failure.

Karl Marx

Mao Tse-tung was responsible for

By the late 1970s,

Which description of capitalism was coined by Karl Marx?

An external cost occurs when

Which statement is true?

Sweden and Norway are usually described as ________________ economies.

A ______ good is something whose consumption by one person does not prevent its consumption by other people.

A public good is

European communism collapsed during the years

One out of every ____ people on this planet lives in China.

Which statement is true?

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 is NOT an example of a command-and-control regulation to limit pollution?

A socialist economy is characterized by

Hitler's Germany was an example of a _________ economic system.

The central institution through which a laissez-faire system answers the basic economic questions is the

In the circular flow model, businesses

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

Statement I. Under fascism, the government owns the means of production. Statement II. Nearly one-third of the world's countries may be described as fascist.

__________________ is an obvious example of government failure.

Karl Marx

Mao Tse-tung was responsible for

By the late 1970s,

Which description of capitalism was coined by Karl Marx?

An external cost occurs when

Which statement is true?

Sweden and Norway are usually described as ________________ economies.

A ______ good is something whose consumption by one person does not prevent its consumption by other people.

A public good is

European communism collapsed during the years

One out of every ____ people on this planet lives in China.

Which statement is true?

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