Question 1

Because of the scarcity of resources,every country must answer the three basic economic questions: _________________;____________________;and ________________.

Accepted Answer

what to produce;how ...

Question 2

Characteristics of the "invisible hand" concept include all of the following,except

Accepted Answer

A)  Simple markets.
B)  Individuals and firms pursue their own self-interest without any central direction or regulation.
C)  A complete lack of government involvement in the economy.
D)  All of the choices are characteristics of the "invisible-hanD."E) B) and C)
F) A) and D)

Question 3

Statement I.Under fascism,the government owns the means of production.
Statement II.Nearly one-third of the world's countries may be described as fascist.

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 D)
F) B) and C)

Question 4

Which of the following economic functions does the U.S.government perform?

Accepted Answer

A)  Collects taxes
B)  Provides services
C)  Issues regulations
D)  The U.S.government performs all of these tasksE) B) and C)
F) C) and D)

Question 5

All capitalist economies

Accepted Answer

A)  can operate without government establishing a legal system.
B)  create an equal distribution of income.
C)  depend on central planning.
D)  depend on the price mechanism.E) A) and B)
F) C) and D)

Question 6

Which description of capitalism was coined by Karl Marx?

Accepted Answer

A)  The capitalist is led by an invisible hand to promote an end which was no part of his intention.
B)  By pursing his own interest he frequently promotes that of the society more effectively than when he really intends to promote it.
C)  The factory owner,by paying his workers meager wages,is able to use this surplus to buy more capital goods.
D)  None of these statements were coined by Karl Marx.E) None of the above
F) B) and C)

Question 7

In the Soviet Union,most goods and services were produced by _________________.

Accepted Answer

The answer of In the Soviet Union,most goods and services...

Question 8

The U.S.economy does a very good job with respect to

Accepted Answer

A)  both equity and efficiency.
B)  equity,but not efficiency.
C)  efficiency,but not equity.
D)  neither equity nor efficiency.E) A) and B)
F) All of the above

Question 9

A $3 increase in the federal gasoline tax would do all of the following except

Accepted Answer

A)  lower gasoline consumption.
B)  reduce air pollution.
C)  convince some American's to get rid of their gas-guzzling vehicles.
D)  reduce shipping costs.E) A) and B)
F) All of the above

Question 10

A ban on leaded gasoline has reduced ____________ pollution.

Accepted Answer

The answer of A ban on leaded gasoline has reduced...

Question 11

Which of the following statements is false?

Accepted Answer

A)  Critics feel that wage and price controls interfere with the price mechanism.
B)  Sweden has one of the world's most equal distributions of income,but also has a relatively low standard of living.
C)  In the former Soviet Union,most of the crops were produced on collective farms.
D)  The price system is based on supply and demanD.E) None of the above
F) A) and B)

Question 12

Which of the following statements is true?

Accepted Answer

A)  When the forces of supply and demand determine for whom goods are produced in a society,an equitable distribution of income will naturally result.
B)  An external cost will occur when some of the benefits derived from production of some good or service are enjoyed by a third party.
C)  One of the roles of our government is to transfer some income from the rich and the middle class to the poor.
D)  According to most economists' definition of competition,the American economy is very competitive.E) B) and C)
F) All of the above

Question 13

Which statement about competition is true?

Accepted Answer

A)  To have competition,no firm is large enough to have any influence over price.
B)  American industry is very competitive.
C)  The American automobile industry would be considered competitive if there were at least four firms in the industry.
D)  There is no competition in American industry.E) A) and C)
F) All of the above

Question 14

Which statement is true about China?

Accepted Answer

A)  It is a world-class industrial power.
B)  It has not as yet achieved world-class industrial power,but it is heading in that direction.
C)  It has just begun its industrial development.
D)  It has virtually no industry,and has not yet embarked on a course of industrialization.E) All of the above
F) A) and C)

Question 15

When our resources are not allocated efficiently,we have _____________.

Accepted Answer

The answer of When our resources are not allocated efficiently,we...

Question 16

Private ownership of most of the means of production is common to

Accepted Answer

A)  capitalism and communism.
B)  capitalism and fascism.
C)  capitalism and socialism.
D)  fascism and communism.E) B) and D)
F) All of the above

Question 17

The __________________ traces the flow of money,resources,and goods and services through the economy.

Accepted Answer

The answer of The __________________ traces the flow of money,resources,and...

Question 18

Each of the following is an example of the price mechanism at work,except when

Accepted Answer

A)  wage and price controls were used during World War II to control inflation.
B)  consumers curtailed driving their cars when the price of gasoline increased dramatically in 2005.
C)  American farmers during World War I expanded production on previously unused land in response to higher crop prices.
D)  factories of gas-guzzling automobiles shut down when the price of gasoline triples in less than three months.E) B) and C)
F) A) and C)

Question 19

Which of the following is NOT an example of an externality?

Accepted Answer

A)  The development of a vaccine for preventing flu.
B)  Acid rain that destroys forest land throughout the Midwest.
C)  Gas prices that doubled between 1998 and 1999.
D)  A factory that dumps dangerous chemicals into the Hudson River.E) A) and C)
F) A) and B)

Question 20

European communism collapsed during the years

Accepted Answer

A)  1969-1971.
B)  1974-1976.
C)  1979-1981.
D)  1984-1986.
E)  1989-1991.F) B) and C)
G) A) and D)

Exam 3: The Mixed Economy

Statement I.Under fascism,the government owns the means of production. Statement II.Nearly one-third of the world's countries may be described as fascist.

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Which of the following economic functions does the U.S.government perform?

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A ban on leaded gasoline has reduced ____________ pollution.

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The U.S.economy does a very good job with respect to

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All capitalist economies

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Private ownership of most of the means of production is common to

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Which description of capitalism was coined by Karl Marx?

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Because of the scarcity of resources,every country must answer the three basic economic questions: _________________;____________________;and ________________.

Correct Answerverifiedwhat to produce;how ...View AnswerShow Answer

Which statement about competition is true?

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The __________________ traces the flow of money,resources,and goods and services through the economy.

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Each of the following is an example of the price mechanism at work,except when

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In the Soviet Union,most goods and services were produced by _________________.

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Characteristics of the "invisible hand" concept include all of the following,except

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European communism collapsed during the years

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Which statement is true about China?

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A $3 increase in the federal gasoline tax would do all of the following except

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Which of the following statements is false?

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When our resources are not allocated efficiently,we have _____________.

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Which of the following is NOT an example of an externality?

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Which of the following statements is true?

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Because of the scarcity of resources,every country must answer the three basic economic questions: _;;and .

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what to produce;how ...
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