Question 1

An economic system with free enterprise, private property rights, and economic decision-making in a market environment is:

Accepted Answer

A)   socialism.
B)   capitalism.
C)   individualism.
D)   none of the above.

Question 2

Circular flow model.
 
-Line (3)  illustrates the flow of:

Accepted Answer

A)   factors of production.
B)   goods and services to their final users.
C)   payments to owners of factors of production.
D)   payments for the purchase of goods and services.

Question 3

Which of the following was NOT an objective of the New Deal?

Accepted Answer

A)   Providing jobs for the unemployed.
B)   Providing income to older adults through Social Security.
C)   Preventing fraudulent banking and investment practices.
D)   Lowering agricultural prices, so people could afford to eat.

Question 4

The three basic economic decisions are:

Accepted Answer

A)   what to produce, how to produce, and what prices to charge.
B)   how to produce, who should produce, and what they should be paid.
C)   what to produce, how to produce, and who receives what has been produced.
D)   what goods and services should be consumed, what these goods and services should cost, and how much people should earn.

Question 5

Most economic systems in the world:

Accepted Answer

A)   are a mix of individual and collective decision making.
B)   are purely centrally planned.
C)   have little or no degree of government involvement in the basic economic decisions.
D)   are traditionally based.

Question 6

The Employment Act of 1946 gave the federal government the right and responsibility to provide an environment for the achievement of full employment, full production, and price stability.

Accepted Answer

A) True 
 B)False

Question 7

Some strengths of a market economy are ______, ________, and _______.

Accepted Answer

efficiency; consumer...

Question 8

Which of the following statements is TRUE?

Accepted Answer

A)   In a planned economy, goods and services are always produced using least cost production techniques.
B)   In a planned economy, the basic economic decisions are the result of interaction between buyers and sellers.
C)   In a planned economy, how goods and services are produced, is determined largely by the resources central planners make available to producers.
D)   In a planned economy, individuals and centralized government authorities work together to answer the basic economic questions.

Question 9

The least-cost method of production is the method that uses resources most efficiently.

Accepted Answer

A) True 
 B)False

Question 10

In a socialist economy, goods and services go only to those who can pay for them with money earned from resources they own.

Accepted Answer

A) True 
 B)False

Question 11

Do you agree or disagree with the statement that "in economic matters, individual decision making is always preferable to decisions made by planners?"Why?

Accepted Answer

I agree, because individuals (...

Question 12

The economic programs and legislative reforms developed in the U.S. during the Great Depression were named:

Accepted Answer

A)   the New Deal.
B)   the Employment Act.
C)   Free Enterprise Reforms.
D)   none of the above.

Question 13

Circular flow model.
 
-The flow of expenditures on goods and services is shown by line:

Accepted Answer

A)   (1) .
B)   (2) .
C)   (3) .
D)   (4) .

Question 14

A good is produced efficiently when it is produced:

Accepted Answer

A)   at the lowest possible cost.
B)   at the lowest possible quality.
C)   with the smallest number of resources.
D)   with equal amounts of the four factors of production.

Question 15

Direct government intervention in the household sector would include:

Accepted Answer

A)   welfare payments.
B)   laws protecting competition.
C)   tariffs and quotas on imports.
D)   none of the above.

Question 16

The least-cost method of production is the method that:

Accepted Answer

A)   is most efficient.
B)   uses the smallest total number of resources.
C)   uses the cheapest factors of production, regardless of their productivity.
D)   minimizes the cost on a company's most important resource rather than the costs on its less important resources.

Question 17

In output markets, businesses are the ____________ and households are the __________.

Accepted Answer

The answer of In output markets, businesses are the ____________...

Question 18

The Wealth of Nations, first published in 1776, strongly advocates mercantilism.

Accepted Answer

A) True 
 B)False

Question 19

Private property rights:

Accepted Answer

A)   are one of the defining elements of capitalism.
B)   are essential to the operation of a market economy.
C)   allow individuals to own and use resources, goods, and services as they choose.
D)   all of the above.

Question 20

Use the following figure.

-The change in the U.S. economy following the Employment Act of 1946 might best be illustrated by a movement from point:

Accepted Answer

A)   B to point A.
B)   E to point D.
C)   F to point D.
D)   F to point A.

Exam 2: Economic Decision Making and Economic Systems

Most economic systems in the world:

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The economic programs and legislative reforms developed in the U.S. during the Great Depression were named:

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Private property rights:

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In a socialist economy, goods and services go only to those who can pay for them with money earned from resources they own.

Correct AnswerverifiedShow Answer

An economic system with free enterprise, private property rights, and economic decision-making in a market environment is:

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Circular flow model. -Line (3) illustrates the flow of:

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The least-cost method of production is the method that uses resources most efficiently.

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A good is produced efficiently when it is produced:

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Some strengths of a market economy are ______, ________, and _______.

Correct Answerverifiedefficiency; consumer...View AnswerShow Answer

Do you agree or disagree with the statement that "in economic matters, individual decision making is always preferable to decisions made by planners?"Why?

Correct AnswerverifiedI agree, because individuals (...View AnswerShow Answer

The Employment Act of 1946 gave the federal government the right and responsibility to provide an environment for the achievement of full employment, full production, and price stability.

Correct AnswerverifiedShow Answer

The least-cost method of production is the method that:

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Circular flow model. -The flow of expenditures on goods and services is shown by line:

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The three basic economic decisions are:

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Direct government intervention in the household sector would include:

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In output markets, businesses are the ____________ and households are the __________.

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Which of the following was NOT an objective of the New Deal?

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The Wealth of Nations, first published in 1776, strongly advocates mercantilism.

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Which of the following statements is TRUE?

Correct AnswerverifiedShow Answer

Use the following figure. -The change in the U.S. economy following the Employment Act of 1946 might best be illustrated by a movement from point:

Correct AnswerverifiedShow Answer

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Some strengths of a market economy are , , and _.

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efficiency; consumer...
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I agree, because individuals (...
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In output markets, businesses are the __ and households are the .

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