Exam 3: The Mixed Economy

Statement I: It is the role of government to ensure that property rights are protected, but not to interfere with minimizing any unpleasant side effects from pollution. Statement II: The U.S. government must provide the infrastructure for a market system to function efficiently.

Which of the following is NOT an example of an externality?

An external benefit occurs when

A $3 increase in the federal gasoline tax would

Characteristics of the "invisible hand" concept include all of the following, except

Statement I. Public goods tend to be indivisible. Statement II. There is often no way to exclude anyone from consuming a public good if she or he did not pay for it.

Capitalism is an economic system in which the ownership of resources is mostly

The nation closest to a centrally planned, socialist economy is

Statement I: By collecting taxes, providing services, and issuing regulations, the government has some effect on the three economic questions: what, how, and for whom. Statement II: In the United States economy, the goals of equity and efficiency do not in any way come into conflict.

Which of the following is NOT a characteristic of a centrally planned economy?

In a capitalistic economic system, who owns most of the nation's resources?

The form of economic system in Hitler's Germany and Mussolini's Italy was called ________.

In a pure capitalist economy, "what to produce" is determined by

A person will do more good pursuing his own self-interest than if he consciously set out to promote the public good was the view of

Which statement is false?

According to Karl Marx, one's social consciousness was determined by one's relationship to the ___________.

Karl Marx said all of the following, except that

Each of these is a basic characteristic of a capitalist economy, except

Which statement is true?

Which of the following is NOT an attribute of a public good?