Question 1

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

Question 2

The U.S.has a mixed economy because

Accepted Answer

A)  the government helps in answering the three basic questions of economics: what,how and for whom.
B)  the laissez faire market system lacks government intervention.
C)  all goods and services are provided privately.
D)  the central planning body makes all market decisions.E) C) and D)
F) All of the above

Question 3

The original source of capital is _________.

Accepted Answer

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

Question 4

Each of the following is a characteristic of socialism,except

Accepted Answer

A)  prohibition of any private ownership of the means of production.
B)  a substantial degree of government planning.
C)  a large-scale redistribution of income.
D)  government ownership of some of the means of production.E) A) and B)
F) A) and C)

Question 5

Statement I.Public goods tend to be indivisible.
Statement II.There is often no way to exclude anyone from consuming a public good if she or he did not pay for 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) A) and B)
F) A) and C)

Question 6

Karl Marx said the people who control a society are the people who

Accepted Answer

A)  run the government.
B)  own the land.
C)  own the plant and equipment.
D)  work in the factories.E) A) and D)
F) B) and D)

Question 7

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

Accepted Answer

The answer of When we drive our cars,we incur not...

Question 8

Which statement is most accurate?

Accepted Answer

A)  Communism is completely dead as an economic system.
B)  Communism is the wave of the future.
C)  Although the United States is nominally a capitalist society,we have a basically communist economy system.
D)  The American economy is guided almost entirely by the price mechanism.E) A) and C)
F) B) and C)

Question 9

Which economic system is usually associated with government ownership of the means of production and central planning?

Accepted Answer

A)  Communism
B)  A market system
C)  Mercantilism
D)  Fascism
E)  CapitalismF) B) and E)
G) All of the above

Question 10

All of the following countries have been described as socialist economies,except

Accepted Answer

A)  Norway
B)  France
C)  Sweden
D)  The United StatesE) All of the above
F) C) and D)

Question 11

Under capitalism the role of government is best described as

Accepted Answer

A)  Nonexistent.
B)  Limited.
C)  Significant.
D)  Extensive.E) C) and D)
F) A) and B)

Question 12

Pollution is an example of an _____________ cost.

Accepted Answer

The answer of Pollution is an example of an _____________...

Question 13

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.F) C) and D)
G) C) and E)

Question 14

An external cost occurs when

Accepted Answer

A)  some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party.
B)  the production or consumption of some good or service inflicts costs on a third party without compensation.
C)  private costs exceed social costs.
D)  private costs exceed private benefits.E) C) and D)
F) B) and D)

Question 15

Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Accepted Answer

make a profit,or the...

Question 16

According to most economists,

Accepted Answer

A)  command-and-control regulations work better than incentive-based regulations.
B)  incentive-based regulations work better than command-and-control regulations.
C)  command-and-control regulations have about the same effectiveness as incentive-based regulations.D) A) and C)
E) All of the above

Question 17

The theory of the communists could be summed up in a single phrase: _____________________________.

Accepted Answer

the abolit...

Question 18

Compared to 35 years ago,air quality in the United States is

Accepted Answer

A)  Much worse
B)  Worse
C)  Virtually the same
D)  BetterE) All of the above
F) B) and C)

Question 19

When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters,this was an example of

Accepted Answer

A)  following an incentive-based regulation.
B)  following a command-and-control regulation.
C)  conducting a transaction between polluters typical of those that have been carried out since the early 20th century.
D)  an illegal transaction.E) C) and D)
F) B) and D)

Question 20

In a pure capitalist economy,"what to produce" is determined by

Accepted Answer

A)  government central planning committees.
B)  the price mechanism.
C)  the credo: "Each according to his ability,to each according to his needs".
D)  all of the choices are true.E) B) and D)
F) A) and D)

Exam 3: The Mixed Economy

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

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Under capitalism the role of government is best described as

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The original source of capital is _________.

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All of the following countries have been described as socialist economies,except

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Compared to 35 years ago,air quality in the United States is

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Which statement is most accurate?

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Public goods will not be produced in the private sector because entrepreneurs cannot ___________________.

Correct Answerverifiedmake a profit,or the...View AnswerShow Answer

Pollution is an example of an _____________ cost.

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Which is the accurate statement?

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Karl Marx said the people who control a society are the people who

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Which economic system is usually associated with government ownership of the means of production and central planning?

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The theory of the communists could be summed up in a single phrase: _____________________________.

Correct Answerverifiedthe abolit...View AnswerShow Answer

An external cost occurs when

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Each of the following is a characteristic of socialism,except

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According to most economists,

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

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Statement I.Public goods tend to be indivisible. Statement II.There is often no way to exclude anyone from consuming a public good if she or he did not pay for it.

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In a pure capitalist economy,"what to produce" is determined by

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The U.S.has a mixed economy because

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When the Times Mirror Company purchased the right to discharge 150 tons of hydrocarbons annually from other polluters,this was an example of

Correct AnswerverifiedShow Answer

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make a profit,or the...
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the abolit...
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