Exam 3: The Mixed Economy

Which statement is true?

Statement I: External costs are market failures, but external benefits are not. Statement II: The U.S. government provides the legal system under which our free enterprise economy can operate.

In the year _______ the communist governments in eastern Europe were swept out of power.

Karl Marx wrote largely about

To have competition as economists define it,

The main reason U.S. farmers can produce more than farmers in China is that they

The circular flow model shows the relationships between

Statement I: In a centrally planned economy, consumers do not have to consider prices when shopping. Statement II: In a capitalist economy the three basic economic questions (what, how and for whom) are determined by the price mechanism.

An economic model is

The U.S. has a mixed economy because

The so-called "bridge to nowhere" in Alaska is an example of

The government uses two measures, _____________________________ regulations and ____________________________ regulations to curb pollution.

Statement I. The circular flow model traces the flow of money, resources, and goods and services through the economy. Statement II. Most household income is spent on investment or capital goods.

According to the circular flow diagram, in return for land, labor, capital and entrepreneurial ability, households receive ______________________________.

Private ownership of nearly all of a nation's land, labor, capital, and entrepreneurial ability is common to

When we drive our cars, we incur not only a private cost, but also a(n) ________ cost.

Most economists in the U.S. believe that the price mechanism leads to

"From each according to his ability; to each according to his needs" is from

Who said, "Property is the exploitation of the weak by the strong. Communism is the exploitation of the strong by the weak"?

The development of the polio vaccine would be considered a(n) _____________________ to society.