Exam 2: The Market System and the Circular Flow

McDonald's introduced the "Big Mac" in 1968 and it turned out to be a hit, but the "Arch Deluxe" introduced in 1996 was not. The success or failure of a product in the market system is determined by:

One of the most important economic resources is money.

In the circular flow model of the market system, households:

Which of the following statements about markets and prices is correct?

Which of the following statements about self-interest in a market system is false?

Which of the following is not a major category of business structure?

An economic system in which money is not used is a:

Which of the following is necessary to make a trade in a barter economy?

The market system communicates changes in market conditions and elicits appropriate responses from businesses and resource suppliers through changes in prices. This is known as the:

A characteristic of the market system is:

The following table illustrates alternative production techniques for producing 18 widgets that can be sold for $1 each for a total revenue of $18. Refer to the above table. If the price per unit of labor were to increase from $2 to $3, the most efficient production technique would then be:

The major virtues of the market system include all of the following, except:

The term dollar votes in a market system means:

In a command economy, the head of each household makes the fundamental economic choices such as what to produce and how to produce output.

The distribution of income in a market system is a primary factor that resolves which of the following fundamental economic questions?

Which of the following is assumed to be most limited in scope under a market system?

A production system where various workers concentrate on different specialized tasks to contribute towards a whole product is referred to as:

In a capitalist system, the decisions and actions of millions of consumers and firms are highly coordinated by:

Competition is more likely to exist when:

The market system is an economic system that: