Question 1

Which statement is the most accurate?

Accepted Answer

A) China is a completely economically backward nation. 
B) China's economic growth has been extremely low for the last 20 years. 
C) China is subjected to periodic famine. 
D) Since 1978, Chinese leaders have relaxed rigid party control of the economy and permitted more individual initiative. 
A) China is a completely economically backward nation. 
B) China's economic growth has been extremely low for the last 20 years. 
C) China is subjected to periodic famine. 
D) Since 1978, Chinese leaders have relaxed rigid party control of the economy and permitted more individual initiative.

Question 2

The price mechanism

Accepted Answer

A) works best when many competing business firms are in each industry. 
B) works best when government through a central planning agency sets prices. 
C) works best when corporations set prices for a market economy. 
D) All of the choices are true about price mechanism. 
A) works best when many competing business firms are in each industry. 
B) works best when government through a central planning agency sets prices. 
C) works best when corporations set prices for a market economy. 
D) All of the choices are true about price mechanism.

Question 3

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 4

What is a mixed economy?

Accepted Answer

A) An economy in which production and distribution is done by both a private sector and a public sector. 
B) An economy that has a mixture of resources. 
C) An economy run by representatives of different political parties. 
D) An economy that produces a blend of various products rather than concentrating on a single product. 
A) An economy in which production and distribution is done by both a private sector and a public sector. 
B) An economy that has a mixture of resources. 
C) An economy run by representatives of different political parties. 
D) An economy that produces a blend of various products rather than concentrating on a single product.

Question 5

Already the world's largest exporter, __________ passed Japan in 2009 to become the number one automobile producers.

Accepted Answer

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

Question 6

Who said, "It is not the employer who pays wages; he only handles the money. It is the product that pays wages."

Accepted Answer

A) Henry Ford 
B) Karl Marx 
C) Jackson Martindell 
D) Studs Terkel 
E) Pierre-Joseph Proudhon 
A) Henry Ford 
B) Karl Marx 
C) Jackson Martindell 
D) Studs Terkel 
E) Pierre-Joseph Proudhon

Question 7

The return received by the owners of capital is called the _______________________.

Accepted Answer

The answer of The return received by the owners of...

Question 8

The government is able to alter the outcome of the three basic economic questions (what? how? and for whom?) by _____________, ________________, and __________.

Accepted Answer

taxing; sp

Question 9

In reality, all economic systems are

Accepted Answer

A) mixed. 
B) command. 
C) capitalistic. 
D) democratic. 
E) socialistic. 
A) mixed. 
B) command. 
C) capitalistic. 
D) democratic. 
E) socialistic.

Question 10

The role of _______ in the production process is central to why our country is rich and most of the rest of the world is poor.

Accepted Answer

A) Labor 
B) Land 
C) Capital 
D) Government 
A) Labor 
B) Land 
C) Capital 
D) Government

Question 11

When our resources are not allocated efficiently, we have _____________.

Accepted Answer

The answer of When our resources are not allocated efficiently,...

Question 12

Statement I. Under our economic system the most important decisions are made in the marketplace. Statement II. Most economists would agree that the price system leads to a very efficient allocation of resources.

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 13

Which of these is NOT an example of opportunity cost?

Accepted Answer

A) Lobster catchers in Point Judith, Rhode Island continued to trap lobsters at the cost of depleting the lobster population. 
B) President George W.Bush's administration has pushed for oil exploration in the Arctic National Wildlife Refuge in Alaska at the cost of environmental preservation. 
C) Lobster catchers in Port Lincoln, Australia paid a licensing fee for the right to own lobster traps. 
D) The "bridge to nowhere" to be built near Anchorage, Alaska comes at the cost of adding to the federal budget deficit. 
A) Lobster catchers in Point Judith, Rhode Island continued to trap lobsters at the cost of depleting the lobster population. 
B) President George W.Bush's administration has pushed for oil exploration in the Arctic National Wildlife Refuge in Alaska at the cost of environmental preservation. 
C) Lobster catchers in Port Lincoln, Australia paid a licensing fee for the right to own lobster traps. 
D) The "bridge to nowhere" to be built near Anchorage, Alaska comes at the cost of adding to the federal budget deficit.

Question 14

Which one of the following is a public good?

Accepted Answer

A) A toll road 
B) Conrail 
C) A local police department 
D) A rent-a-cop agency 
A) A toll road 
B) Conrail 
C) A local police department 
D) A rent-a-cop agency

Question 15

How did the Soviet model of communism compare to that of Karl Marx?

Accepted Answer

A) The models were identical. 
B) The Soviet model was faithful to the Marxian model, but it had been modified slightly over the years. 
C) What the Soviets were operating all these years was a classic capitalist model. 
D) While there was public ownership of the means of production, there did not appear to be a very close resemblance to the Marxian model. 
A) The models were identical. 
B) The Soviet model was faithful to the Marxian model, but it had been modified slightly over the years. 
C) What the Soviets were operating all these years was a classic capitalist model. 
D) While there was public ownership of the means of production, there did not appear to be a very close resemblance to the Marxian model.

Question 16

Which of the following statements is true?

Accepted Answer

A) Karl Marx coined the term "the invisible hand." 
B) Adam Smith wrote Das Kapital. 
C) Karl Marx believed the state would eventually wither away leaving a worker's paradise. 
D) Adam Smith believed that individuals unselfishly pursue the public good. 
A) Karl Marx coined the term "the invisible hand." 
B) Adam Smith wrote Das Kapital. 
C) Karl Marx believed the state would eventually wither away leaving a worker's paradise. 
D) Adam Smith believed that individuals unselfishly pursue the public good.

Question 17

Which of the following nations is a pure capitalist economy where the role of government is kept to a bare minimum?

Accepted Answer

A) United States 
B) Norway 
C) Japan 
D) Russia 
E) None of the listed nations are a pure capitalist economy. 
A) United States 
B) Norway 
C) Japan 
D) Russia 
E) None of the listed nations are a pure capitalist economy.

Question 18

Compared to 35 years ago, air quality in the United States is

Accepted Answer

A) Much worse 
B) Worse 
C) Virtually the same 
D) Better 
A) Much worse 
B) Worse 
C) Virtually the same 
D) Better

Question 19

All of the following describes Nazi Germany's economic system, except that

Accepted Answer

A) the ownership of land, labor and capital was in private hands. 
B) it was highly nationalistic with much of its production directed toward military goods and services. 
C) the government dictated what was to be produced. 
D) a major goal was to redistribute income from the wealthy and the middle class to the poor. 
A) the ownership of land, labor and capital was in private hands. 
B) it was highly nationalistic with much of its production directed toward military goods and services. 
C) the government dictated what was to be produced. 
D) a major goal was to redistribute income from the wealthy and the middle class to the poor.

Question 20

In the former Soviet Union, nearly all resources were owned by

Accepted Answer

A) the government. 
B) business firms. 
C) individuals. 
D) foreigners. 
A) the government. 
B) business firms. 
C) individuals. 
D) foreigners.

Which statement is the most accurate?

The price mechanism

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

What is a mixed economy?

Already the world's largest exporter, __________ passed Japan in 2009 to become the number one automobile producers.

Who said, "It is not the employer who pays wages; he only handles the money. It is the product that pays wages."

The return received by the owners of capital is called the _______________________.

The government is able to alter the outcome of the three basic economic questions (what? how? and for whom?) by ___, , and .

In reality, all economic systems are

The role of _______ in the production process is central to why our country is rich and most of the rest of the world is poor.

When our resources are not allocated efficiently, we have _____________.

Statement I. Under our economic system the most important decisions are made in the marketplace. Statement II. Most economists would agree that the price system leads to a very efficient allocation of resources.

Which of these is NOT an example of opportunity cost?

Which one of the following is a public good?

How did the Soviet model of communism compare to that of Karl Marx?

Which of the following statements is true?

Which of the following nations is a pure capitalist economy where the role of government is kept to a bare minimum?

Compared to 35 years ago, air quality in the United States is

All of the following describes Nazi Germany's economic system, except that

In the former Soviet Union, nearly all resources were owned by

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 statement is the most accurate?

The price mechanism

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

What is a mixed economy?

Already the world's largest exporter, __________ passed Japan in 2009 to become the number one automobile producers.

Who said, "It is not the employer who pays wages; he only handles the money. It is the product that pays wages."

The return received by the owners of capital is called the _______________________.

The government is able to alter the outcome of the three basic economic questions (what? how? and for whom?) by _____________, ________________, and __________.

In reality, all economic systems are

The role of _______ in the production process is central to why our country is rich and most of the rest of the world is poor.

When our resources are not allocated efficiently, we have _____________.

Statement I. Under our economic system the most important decisions are made in the marketplace. Statement II. Most economists would agree that the price system leads to a very efficient allocation of resources.

Which of these is NOT an example of opportunity cost?

Which one of the following is a public good?

How did the Soviet model of communism compare to that of Karl Marx?

Which of the following statements is true?

Which of the following nations is a pure capitalist economy where the role of government is kept to a bare minimum?

Compared to 35 years ago, air quality in the United States is

All of the following describes Nazi Germany's economic system, except that

In the former Soviet Union, nearly all resources were owned by

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 government is able to alter the outcome of the three basic economic questions (what? how? and for whom?) by ___, , and .