Question 1

In a market economy, goods and services are distributed equally to each individual.

Accepted Answer

A) True 
 B)False

Question 2

Circular flow model.
 
-Lines (1)  and (3)  show, respectively, the flows of:

Accepted Answer

A)   factors of production, and goods and services.
B)   goods and services, and factors of production.
C)   expenditures on goods and services, and factors of production.
D)   expenditures on goods and services, and goods and services.

Question 3

Which of the following statements about an economy based totally on individual decision making is true?

Accepted Answer

A)   No economy like this exists in the real world.
B)   Goods and services go to those who need them most.
C)   An economy like this depends on government regulation to ensure that buyers and sellers can communicate their intentions.
D)   All of the above.

Question 4

The poem, "The Factory Girl's Last Day,"in Application 2.3 best exemplifies conditions during the:

Accepted Answer

A)   New Deal.
B)   British mercantilist period.
C)   British Industrial Revolution.
D)   U.S. deregulatory wave of the 1970s and 1980s.

Question 5

In Eastern Europe, the transition from planned economies to market-based economies went remarkably fast, leading to unprecedented growth in a short period of time.

Accepted Answer

A) True 
 B)False

Question 6

According to the circular flow model, money flows from businesses to households in:

Accepted Answer

A)   input markets.
B)   output markets.
C)   both input and output markets.
D)   neither input nor output markets.

Question 7

According to the circular flow model, land, labor, capital, and entrepreneurship flow from:

Accepted Answer

A)   households to businesses in input markets.
B)   businesses to households in input markets.
C)   households to businesses in output markets.
D)   businesses to households in output markets.

Question 8

Decisions about what goods and services will be produced, how they will be produced, and who will get them, must be made in:

Accepted Answer

A)   all economies.
B)   market economies, but not in planned economies.
C)   socialist economies, but not in capitalist economies.
D)   economies based on individual decision making, but not in economies based on collective decision making.

Question 9

The British Industrial Revolution was marked by:

Accepted Answer

A)   a shift from agriculture to manufacturing.
B)   the advent of better technology and larger outputs.
C)   a shift from home production to factory-based production.
D)   all of the above.

Question 10

Laissez-faire capitalism:

Accepted Answer

A)   is concerned with placing the interests of the state above the interests of individuals.
B)   holds that, for the sake of fairness, the state should decide how much income people will receive.
C)   holds that individual decision making with minimal government intervention will maximize the interests of society.
D)   all of the above.

Question 11

In a market economy the three basic economic decisions are made by the:

Accepted Answer

A)   government, based on voter preferences.
B)   interaction of individual buyers and sellers based on prices.
C)   government, based on the power of government office holders.
D)   interaction of individual buyers and sellers based on the effectiveness of advertising.

Question 12

Circular flow model.
 
-If line 2 represents the flow of payments to businesses for goods and services, then line 4 represents the flow of:

Accepted Answer

A)   resources in input markets.
B)   goods and services in output markets.
C)   payments to resource owners by businesses.
D)   none of the above.

Question 13

Why is privatization essential for the shift from a centrally planned economy to a market economy?

Accepted Answer

Without the idea of privatizat...

Question 14

The landmark change brought about by the passage of The Employment Act of 1946 was the:

Accepted Answer

A)   provision of payments to unemployed workers.
B)   requirement that government create jobs for the unemployed.
C)   granting of power to the government to control input markets.
D)   granting of power to the government to provide an environment that supports the entire economy.

Question 15

A weakness of a market system is:

Accepted Answer

A)   it generates products that consumers do not want.
B)   it generates low quality products when there are competing producers.
C)   it does not encourage people to develop skills that allow them to be successful.
D)   the incentive to produce at minimum cost could lead to environmental damage.

Exam 2: Economic Decision Making and Economic Systems

Decisions about what goods and services will be produced, how they will be produced, and who will get them, must be made in:

Correct Answer
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The British Industrial Revolution was marked by:

Correct Answer
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The poem, "The Factory Girl's Last Day,"in Application 2.3 best exemplifies conditions during the:

Correct Answer
verified

In Eastern Europe, the transition from planned economies to market-based economies went remarkably fast, leading to unprecedented growth in a short period of time.

Correct Answer
verified

Why is privatization essential for the shift from a centrally planned economy to a market economy?

Correct Answer
verified
Without the idea of privatizat...
View Answer

Laissez-faire capitalism:

Correct Answer
verified

The landmark change brought about by the passage of The Employment Act of 1946 was the:

Correct Answer
verified

According to the circular flow model, land, labor, capital, and entrepreneurship flow from:

Correct Answer
verified

In a market economy the three basic economic decisions are made by the:

Correct Answer
verified

In a market economy, goods and services are distributed equally to each individual.

Correct Answer
verified

Circular flow model. -Lines (1) and (3) show, respectively, the flows of:

Correct Answer
verified

Which of the following statements about an economy based totally on individual decision making is true?

Correct Answer
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A weakness of a market system is:

Correct Answer
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According to the circular flow model, money flows from businesses to households in:

Correct Answer
verified

Circular flow model. -If line 2 represents the flow of payments to businesses for goods and services, then line 4 represents the flow of:

Correct Answer
verified

Exam 2: Economic Decision Making and Economic Systems

Decisions about what goods and services will be produced, how they will be produced, and who will get them, must be made in:

Correct AnswerverifiedShow Answer

The British Industrial Revolution was marked by:

Correct AnswerverifiedShow Answer

The poem, "The Factory Girl's Last Day,"in Application 2.3 best exemplifies conditions during the:

Correct AnswerverifiedShow Answer

In Eastern Europe, the transition from planned economies to market-based economies went remarkably fast, leading to unprecedented growth in a short period of time.

Correct AnswerverifiedShow Answer

Why is privatization essential for the shift from a centrally planned economy to a market economy?

Correct AnswerverifiedWithout the idea of privatizat...View AnswerShow Answer

Laissez-faire capitalism:

Correct AnswerverifiedShow Answer

The landmark change brought about by the passage of The Employment Act of 1946 was the:

Correct AnswerverifiedShow Answer

According to the circular flow model, land, labor, capital, and entrepreneurship flow from:

Correct AnswerverifiedShow Answer

In a market economy the three basic economic decisions are made by the:

Correct AnswerverifiedShow Answer

In a market economy, goods and services are distributed equally to each individual.

Correct AnswerverifiedShow Answer

Circular flow model. -Lines (1) and (3) show, respectively, the flows of:

Correct AnswerverifiedShow Answer

Which of the following statements about an economy based totally on individual decision making is true?

Correct AnswerverifiedShow Answer

A weakness of a market system is:

Correct AnswerverifiedShow Answer

According to the circular flow model, money flows from businesses to households in:

Correct AnswerverifiedShow Answer

Circular flow model. -If line 2 represents the flow of payments to businesses for goods and services, then line 4 represents the flow of:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Without the idea of privatizat...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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