Question 1

Sweden and Norway would best be described as _______ countries.

Accepted Answer

A)  Capitalist
B)  Fascist
C)  Communist
D)  SocialistE) None of the above
F) A) and B)

Question 2

Statement I.Adam Smith believed the federal government should play a larger role in the economy.
Statement II.Adam Smith said that a person pursuing his own interest "frequently promotes that of society more effectually than when he really intends to promote it."

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.E) B) and C)
F) A) and B)

Question 3

An example of a public good is

Accepted Answer

A)  a concert by renowned country music star George Strait.
B)  a good that can be used exclusively by one consumer only.
C)  a local free fireworks display.
D)  a café latte at Starbucks.E) B) and C)
F) B) and D)

Question 4

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

Accepted Answer

A)  the institution of private property.
B)  central planning.
C)  laissez-faire.
D)  individuals acting in their own self-interest.E) A) and B)
F) A) and C)

Question 5

The government is able to alter the outcome of the three basic economic questions (what? how? and for whom?)by _____________,________________,and __________.

Accepted Answer

taxing;spe...

Question 6

An example of a public good is

Accepted Answer

A)  national defense.
B)  a lighthouse.
C)  flood control protection from the Tennessee Valley Authority (TV
A)  .
D)  police protection.
E)  All of the choices are examples of a public good.F) C) and E)
G) A) and D)

Question 7

If a nation starts out with very little capital

Accepted Answer

A)  it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods.
B)  it can quite easily divert some resources from producing consumer goods to producing capital goods.
C)  if it is lucky enough to possess a valuable commodity that the industrial world wants such as oil,it can sell its oil in exchange for plant and equipment and thus industrialize.
D)  None of the choices are true.E) A) and B)
F) A) and C)

Question 8

Which of the following is not a typical attribute of a socialist country?

Accepted Answer

A)  Taxes are very high,particularly on the wealthy classes.
B)  Production is guided by the price system.
C)  Government owns some of the means of production.
D)  Cradle-to-grave security for its citizens.E) A) and C)
F) None of the above

Question 9

Cradle-to-grave security is most common in ___________ countries.

Accepted Answer

A)  Capitalist
B)  Communist
C)  Socialist
D)  FascistE) A) and B)
F) B) and C)

Question 10

In the circular flow model,businesses

Accepted Answer

A)  demand both products and resources.
B)  supply both products and resources.
C)  demand products and supply resources.
D)  supply products and demand resources.E) B) and C)
F) None of the above

Question 11

Statement I: Capitalism is based on trust.
Statement II: Capitalism is often confused with democracy.

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.E) C) and D)
F) B) and D)

Question 12

Today,__________ leads the world with more than 800 million cell phone users.

Accepted Answer

A)  the United States
B)  China
C)  Japan
D)  CanadaE) A) and B)
F) A) and C)

Question 13

Which statement is true?

Accepted Answer

A)  In China today,the private sector produces no more than 10% of the country's goods and services.
B)  Under communism in the Soviet Union,the private sector was almost as large as the government sector.
C)  In the American economy today,the public sector is almost as large as the private sector.
D)  All of the statements are true.
E)  None of the statements are true.F) B) and D)
G) B) and C)

Question 14

Suppose you live in the suburbs and dump your garbage on your front lawn on a daily basis.

Accepted Answer

A)  Your actions hurt no one but yourself.
B)  Your actions constitute an external cost to your neighbors.
C)  Your actions constitute an external benefit to your neighbors.
D)  Your actions would not be considered a market failure.E) A) and B)
F) A) and D)

Question 15

"The invisible hand" is really the ___________.

Accepted Answer

The answer of "The invisible hand" is really the ___________....

Question 16

Sweden and Norway are usually described as ________________ economies.

Accepted Answer

The answer of Sweden and Norway are usually described as...

Question 17

Raising taxes on gasoline __________ the price of gasoline and __________ the number of gallons purchased.

Accepted Answer

The answer of Raising taxes on gasoline __________ the price...

Question 18

Which one of the following is a public good?

Accepted Answer

A)  A toll road
B)  Conrail
C)  A local police department
D)  A rent-a-cop agencyE) C) and D)
F) A) and D)

Question 19

Under the old Soviet version of communism in the U.S.S.R. ,the questions of 'What?','How?',and 'For whom?' were answered by

Accepted Answer

A)  a democratically elected congress called the DumA.
B)  the law of supply and demand.
C)  the decisions of hundreds of millions of individual consumers.
D)  a government planning committee.
E)  the owners of private businesses.F) A) and D)
G) C) and D)

Question 20

How many households receive their incomes mainly from the business sector?

Accepted Answer

A)  300 million
B)  117 million
C)  50 million
D)  39 millionE) All of the above
F) C) and D)

Exam 3: The Mixed Economy

The government is able to alter the outcome of the three basic economic questions (what? how? and for whom?)by _____________,________________,and __________.

Correct Answerverifiedtaxing;spe...View AnswerShow Answer

In the circular flow model,businesses

Correct AnswerverifiedShow Answer

An example of a public good is

Correct AnswerverifiedShow Answer

Sweden and Norway would best be described as _______ countries.

Correct AnswerverifiedShow Answer

An example of a public good is

Correct AnswerverifiedShow Answer

Statement I.Adam Smith believed the federal government should play a larger role in the economy. Statement II.Adam Smith said that a person pursuing his own interest "frequently promotes that of society more effectually than when he really intends to promote it."

Correct AnswerverifiedShow Answer

"The invisible hand" is really the ___________.

Correct AnswerverifiedShow Answer

Sweden and Norway are usually described as ________________ economies.

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

Statement I: Capitalism is based on trust. Statement II: Capitalism is often confused with democracy.

Correct AnswerverifiedShow Answer

If a nation starts out with very little capital

Correct AnswerverifiedShow Answer

Suppose you live in the suburbs and dump your garbage on your front lawn on a daily basis.

Correct AnswerverifiedShow Answer

Under the old Soviet version of communism in the U.S.S.R. ,the questions of 'What?','How?',and 'For whom?' were answered by

Correct AnswerverifiedShow Answer

Cradle-to-grave security is most common in ___________ countries.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Today,__________ leads the world with more than 800 million cell phone users.

Correct AnswerverifiedShow Answer

Raising taxes on gasoline __________ the price of gasoline and __________ the number of gallons purchased.

Correct AnswerverifiedShow Answer

Which one of the following is a public good?

Correct AnswerverifiedShow Answer

Which of the following is not a typical attribute of a socialist country?

Correct AnswerverifiedShow Answer

How many households receive their incomes mainly from the business sector?

Correct AnswerverifiedShow Answer

The government is able to alter the outcome of the three basic economic questions (what? how? and for whom?)by ___,,and .

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Raising taxes on gasoline the price of gasoline and the number of gallons purchased.

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