Question 1

Property rights allowing individuals to own goods,services,and factors of production are most important in:

Accepted Answer

A)   socialistic economies.
B)   planned economies.
C)   capitalistic economies.
D)   command economies.

Question 2

Under socialism,no markets can operate at all.

Accepted Answer

A) True 
 B)False

Question 3

What famous economist said that the market economy seemed to be controlled by an invisible hand?

Accepted Answer

A)   Alfred Marshall.
B)   Adam Smith.
C)   Karl Marx.
D)   Robert L. Heilbroner.

Question 4

A traditional system operates based on the self interest of buyers and sellers.

Accepted Answer

A) True 
 B)False

Question 5

An economic system is the organizations and methods used to determine:

Accepted Answer

A)   what goods and services are produced.
B)   how goods and services are produced.
C)   for whom goods and services are produced.
D)   all of the above.

Question 6

A command system uses a group of planners or central authority to make basic economic decisions.

Accepted Answer

A) True 
 B)False

Question 7

The economic system that answers the What,How and For Whom questions the way they have always been answered is a:

Accepted Answer

A)   market economy.
B)   command economy
C)   soviet economy.
D)   traditional economy.

Question 8

A market system does not operate based on self-interest.

Accepted Answer

A) True 
 B)False

Question 9

Under socialism,factories,farms,mines,and natural resources are owned by:

Accepted Answer

A)   laborers.
B)   government.
C)   private stockholders.
D)   no one.

Question 10

Karl Marx viewed socialism only as a transition to the ideal state of communism.

Accepted Answer

A) True 
 B)False

Question 11

An economic system that answers the What,How,and For Whom questions using prices determined by the interaction of the forces of supply and demand is a:

Accepted Answer

A)   market economy.
B)   command economy.
C)   traditional economy.
D)   none of the above.

Question 12

The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:

Accepted Answer

A)   market economy.
B)   command economy
C)   soviet economy.
D)   traditional economy. A

Question 13

The economic system in which the basic economic questions are answered through markets with some government intervention is a:

Accepted Answer

A)   command economy.
B)   mixed economy.
C)   market economy.
D)   planned economy.

Question 14

Which of the following statements is true about a command economy?

Accepted Answer

A)   Shortages occur because of complexities in the planning process.
B)   Planners determine what, how many, and for whom goods and services are to be produced.
C)   Planners often allocate goods and services through a rationing system.
D)   The quality of produced goods and services tends to be inferior.
E)   All of the above are true.

Question 15

A classless society and economic system where all the factors of production are owned by workers and people share production according to their needs describes:

Accepted Answer

A)   capitalism.
B)   communism.
C)   the invisible hand.
D)   a mixed economy.

Question 16

In the real world,most economic systems are:

Accepted Answer

A)   market economies.
B)   command economies
C)   mixed economies.
D)   traditional economies. C

Question 17

Adam Smith wrote that the:

Accepted Answer

A)   economic problems of eighteenth-century England were caused by free markets.
B)   government should control the economy.
C)   pursuit of private self interest promotes the public interest in a market economy.
D)   public or collective interest is not promoted by people pursuing their self interest.

Question 18

Adam Smith's book The Wealth of Nations was published at the time of the:

Accepted Answer

A)   Great Depression.
B)   U.S. Declaration of Independence.
C)   U.S. Civil War.
D)   War of 1812.

Question 19

The term "socialism" refers to which of the following?

Accepted Answer

A)   A religion centered on community interaction.
B)   An economic system characterized by private ownership of resources, and decentralized market allocation.
C)   An economic system characterized by government ownership of resources and centralized allocation.
D)   None of the above. C

Question 20

In a traditional economy,innovation is encouraged.

Accepted Answer

A) True 
 B)False

Exam 22: Economies in Transition

Property rights allowing individuals to own goods,services,and factors of production are most important in:

Correct AnswerverifiedShow Answer

Under socialism,no markets can operate at all.

Correct AnswerverifiedShow Answer

What famous economist said that the market economy seemed to be controlled by an invisible hand?

Correct AnswerverifiedShow Answer

A traditional system operates based on the self interest of buyers and sellers.

Correct AnswerverifiedShow Answer

An economic system is the organizations and methods used to determine:

Correct AnswerverifiedShow Answer

A command system uses a group of planners or central authority to make basic economic decisions.

Correct AnswerverifiedShow Answer

The economic system that answers the What,How and For Whom questions the way they have always been answered is a:

Correct AnswerverifiedShow Answer

A market system does not operate based on self-interest.

Correct AnswerverifiedShow Answer

Under socialism,factories,farms,mines,and natural resources are owned by:

Correct AnswerverifiedShow Answer

Karl Marx viewed socialism only as a transition to the ideal state of communism.

Correct AnswerverifiedShow Answer

An economic system that answers the What,How,and For Whom questions using prices determined by the interaction of the forces of supply and demand is a:

Correct AnswerverifiedShow Answer

The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:

Correct AnswerverifiedA

The economic system in which the basic economic questions are answered through markets with some government intervention is a:

Correct AnswerverifiedShow Answer

Which of the following statements is true about a command economy?

Correct AnswerverifiedShow Answer

A classless society and economic system where all the factors of production are owned by workers and people share production according to their needs describes:

Correct AnswerverifiedShow Answer

In the real world,most economic systems are:

Correct AnswerverifiedC

Adam Smith wrote that the:

Correct AnswerverifiedShow Answer

Adam Smith's book The Wealth of Nations was published at the time of the:

Correct AnswerverifiedShow Answer

The term "socialism" refers to which of the following?

Correct AnswerverifiedC

In a traditional economy,innovation is encouraged.

Correct AnswerverifiedShow Answer

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A

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C

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C

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