Question 1

Karl Marx believed in all of the following, except

Accepted Answer

A) controlling political power was more important than controlling the ownership of capital with respect to dominating a society. 
B) in capitalist societies, a business owner makes huge profits by exploiting his workers. 
C) one's social consciousness was determined by one's relationship to the means of production. 
D) inevitably there would be a clash between capitalists and workers. 
A) controlling political power was more important than controlling the ownership of capital with respect to dominating a society. 
B) in capitalist societies, a business owner makes huge profits by exploiting his workers. 
C) one's social consciousness was determined by one's relationship to the means of production. 
D) inevitably there would be a clash between capitalists and workers.

Question 2

In order for the price mechanism to work, we need

Accepted Answer

A) To have the government regulate each industry. 
B) Many competing firms in each industry. 
C) To have only a few firms in each industry. 
D) None of the choices are true. 
A) To have the government regulate each industry. 
B) Many competing firms in each industry. 
C) To have only a few firms in each industry. 
D) None of the choices are true.

Question 3

The original source of capital is _________.

Accepted Answer

The answer of The original source of capital is _________....

Question 4

About ______ percent of China's population lives in rural areas.

Accepted Answer

A) 5 
B) 25 
C) 50 
D) 67 
A) 5 
B) 25 
C) 50 
D) 67

Question 5

Statement I. If the owner of an office park plants shade trees on the grounds, she is not only providing private benefits, but external benefits as well. Statement II. The federal government does virtually nothing to discourage companies from incurring external costs.

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 6

In theory, ___________ advocates the abolition of private property.

Accepted Answer

A) Capitalism 
B) Communism 
C) Socialism 
D) Fascism 
A) Capitalism 
B) Communism 
C) Socialism 
D) Fascism

Question 7

Capital is _______________

Accepted Answer

A) the crucial element in every economic system. 
B) the key to every society's standard of living. 
C) the result from savings. 
D) All of these statements describe capital. 
A) the crucial element in every economic system. 
B) the key to every society's standard of living. 
C) the result from savings. 
D) All of these statements describe capital.

Question 8

Of the following countries which are recognized as socialist systems?

Accepted Answer

A) Sweden. 
B) Greece. 
C) Canada. 
D) All of these countries have socialist systems. 
A) Sweden. 
B) Greece. 
C) Canada. 
D) All of these countries have socialist systems.

Question 9

In the United States and in most other developed capitalist economies, the government

Accepted Answer

A) typically plays a significant role in allocating resources and redistributing income. 
B) serves to enforce property rights, but plays no role in the allocation of society's resources. 
C) is primarily concerned with central planning. 
D) employs less than 1% of the labor force. 
E) None of the choices are true. 
A) typically plays a significant role in allocating resources and redistributing income. 
B) serves to enforce property rights, but plays no role in the allocation of society's resources. 
C) is primarily concerned with central planning. 
D) employs less than 1% of the labor force. 
E) None of the choices are true.

Question 10

Statement I. One of the economic roles of our government is to maintain our competitive system and ensure the relatively unfettered operation of the law of supply and demand. Statement II. The Chinese economy has a very small private sector.

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 11

Having the government issue permits that allow polluting

Accepted Answer

A) would decrease the levels of pollution. 
B) is an example of a command-and control regulation. 
C) would penalize companies that were good at curbing their pollution. 
D) has been very ineffective in curbing pollution. 
A) would decrease the levels of pollution. 
B) is an example of a command-and control regulation. 
C) would penalize companies that were good at curbing their pollution. 
D) has been very ineffective in curbing pollution.

Question 12

Which is the accurate statement?

Accepted Answer

A) There is no evidence that there is such a thing as global warming. 
B) By the end of the century, most of the cities on the east coast and the west coast will be under water. 
C) The effects of global warming are uncertain. 
D) Scientific opinion is virtually unanimous about the effects of global warming. 
A) There is no evidence that there is such a thing as global warming. 
B) By the end of the century, most of the cities on the east coast and the west coast will be under water. 
C) The effects of global warming are uncertain. 
D) Scientific opinion is virtually unanimous about the effects of global warming.

Question 13

In a centrally planned economic system, who decides what and how much will be produced?

Accepted Answer

A) Consumers 
B) Privately owned businesses 
C) The government 
D) The people, by referendum every five years 
E) Consumers and producers together, guided by the market 
A) Consumers 
B) Privately owned businesses 
C) The government 
D) The people, by referendum every five years 
E) Consumers and producers together, guided by the market

Question 14

Our government helps the free enterprise system work by doing all of the following except

Accepted Answer

A) seeing that information flows freely. 
B) providing the infrastructure for a market system to function efficiently. 
C) defining property rights. 
D) lowering some of the barriers to competition. 
E) creating an equal distribution of income. 
A) seeing that information flows freely. 
B) providing the infrastructure for a market system to function efficiently. 
C) defining property rights. 
D) lowering some of the barriers to competition. 
E) creating an equal distribution of income.

Question 15

A nation which has many active free markets in which profits motivate sellers and also regulatory bureaucracies would be an example of

Accepted Answer

A) a free market. 
B) a centrally planned economy. 
C) a mixed economy. 
D) an equitable economy. 
A) a free market. 
B) a centrally planned economy. 
C) a mixed economy. 
D) an equitable economy.

Question 16

Which of the following statements is true?

Accepted Answer

A) Taxing the wealthy will lead to a more efficient economy. 
B) Taxing the poor will lead to a more equal distribution of income. 
C) A basic trade-off exists between the goals of equity and efficiency for a society. 
D) The forces of supply and demand will automatically lead to an equitable distribution of income. 
A) Taxing the wealthy will lead to a more efficient economy. 
B) Taxing the poor will lead to a more equal distribution of income. 
C) A basic trade-off exists between the goals of equity and efficiency for a society. 
D) The forces of supply and demand will automatically lead to an equitable distribution of income.

Question 17

In the former Soviet Union distributing scarce consumer goods was accomplished by

Accepted Answer

A) higher prices which eliminated some potential consumers. 
B) making the consumer stand in a long line for hours if not days. 
C) the government simply printing more money. 
D) None of the choices are true. 
A) higher prices which eliminated some potential consumers. 
B) making the consumer stand in a long line for hours if not days. 
C) the government simply printing more money. 
D) None of the choices are true.

Question 18

The factory conditions of 19th century England that Karl Marx described may be found in his book, ______.

Accepted Answer

The answer of The factory conditions of 19th century England...

Question 19

A ban on leaded gasoline has reduced ____________ pollution.

Accepted Answer

The answer of A ban on leaded gasoline has reduced...

Question 20

Which of the following (is) are considered market failure(s)?

Accepted Answer

A) Monopoly. 
B) Externalities. 
C) The lack of public goods and services. 
D) All of the choices are considered market failures. 
A) Monopoly. 
B) Externalities. 
C) The lack of public goods and services. 
D) All of the choices are considered market failures.

Karl Marx believed in all of the following, except

In order for the price mechanism to work, we need

The original source of capital is _________.

About ______ percent of China's population lives in rural areas.

Statement I. If the owner of an office park plants shade trees on the grounds, she is not only providing private benefits, but external benefits as well. Statement II. The federal government does virtually nothing to discourage companies from incurring external costs.

In theory, ___________ advocates the abolition of private property.

Capital is _______________

Of the following countries which are recognized as socialist systems?

In the United States and in most other developed capitalist economies, the government

Statement I. One of the economic roles of our government is to maintain our competitive system and ensure the relatively unfettered operation of the law of supply and demand. Statement II. The Chinese economy has a very small private sector.

Having the government issue permits that allow polluting

Which is the accurate statement?

In a centrally planned economic system, who decides what and how much will be produced?

Our government helps the free enterprise system work by doing all of the following except

A nation which has many active free markets in which profits motivate sellers and also regulatory bureaucracies would be an example of

Which of the following statements is true?

In the former Soviet Union distributing scarce consumer goods was accomplished by

The factory conditions of 19th century England that Karl Marx described may be found in his book, ______.

A ban on leaded gasoline has reduced ____________ pollution.

Which of the following (is) are considered market failure(s)?

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 believed in all of the following, except

In order for the price mechanism to work, we need

The original source of capital is _________.

About ______ percent of China's population lives in rural areas.

Statement I. If the owner of an office park plants shade trees on the grounds, she is not only providing private benefits, but external benefits as well. Statement II. The federal government does virtually nothing to discourage companies from incurring external costs.

In theory, ___________ advocates the abolition of private property.

Capital is _______________

Of the following countries which are recognized as socialist systems?

In the United States and in most other developed capitalist economies, the government

Statement I. One of the economic roles of our government is to maintain our competitive system and ensure the relatively unfettered operation of the law of supply and demand. Statement II. The Chinese economy has a very small private sector.

Having the government issue permits that allow polluting

Which is the accurate statement?

In a centrally planned economic system, who decides what and how much will be produced?

Our government helps the free enterprise system work by doing all of the following except

A nation which has many active free markets in which profits motivate sellers and also regulatory bureaucracies would be an example of

Which of the following statements is true?

In the former Soviet Union distributing scarce consumer goods was accomplished by

The factory conditions of 19th century England that Karl Marx described may be found in his book, ______.

A ban on leaded gasoline has reduced ____________ pollution.

Which of the following (is) are considered market failure(s)?

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