Unit 2 chapters 2,18, and 3 economics
Each society determine who will consume what is produced based on a.)its unique combination of socical values and goals b.)the amount of factor payments c.) its needs and wants d.) economic equity
a.)
How did collectives in the Soviet Union avoid the competition that drives a free market economy a.)there are no incentives for comptition because the government determined prices, wages, and products b.)The farmers were not able to sell their own products c.)Heavy industyry was not a direct competitior d.) it was illegal to buy products from a competitior
a.)
How is per capita gross domestic product calculated a.)total market value of goods and services produced with in a year divided by total population b.)population multiplied by the value of goods but not services c.) total market value of goods produced within a year divided by adult popullation d.)literate population multiplied by the value of goods and services
a.)
How will consumers react to the incentive of a higher price on a good or service a.)the negative incentive will cause consumers to purchase less of the good or service if it is of lower quality b.)the positive incentive will coause consumers to purchase less of the good or service if it is of lower quality c.)the negative incentive will cause consumers to purchase less of the good or service if it is of higher quality d.)the positive incentive will cause consumers to purchase less of the good or service if it is of higher quality
a.)
In whattwo ways does the Bill of Rights rotect and guarantee individuals' freedom to engage in business activities a.)Recognizes property rights and limits on taxation b.)Encourages leagal equality and prvides free contracts c.)Denie sthe government the ability to regulate commerce d.)Provides each industry with a competitive edge
a.)
Policy makers pursue all of the following goals to stabilize the economy EXCEPT a.)stable productivity b.)high employment c.)stable prices d.)steady growth
a.)
Sweden's social benefit programs a.)provide many health care and other advatages but invole a very high tax burden for the people b.)provide many health care and other advantages at no cost to the people c.)provide many health care and other advantages but cost the people three quarters of their base salary d.)provide many advantages to businesses, making them highly profitable
a.)
What economic decision made consumer good so difficult to get in the Soviet Union until the late 1980s a.)the emphasis on heavy industry b.)the unwillingness to allow private industry to produce them c.)the large numbers of people who wanted to buy these goods d.)the emphasis on the production of food
a.)
What is "brain drain" a.) the well-educated leave a less developed country to work in a developed nation b.)the citizens of a developed country leave to try to improve a less developed one c.) the less educated leave a developed country to work in a less developed nation d.)the well-educated are in a minority n a less developed country
a.)
What is critical in determining whether something is produced as a public good a.)wheather the benefits to society are greater than the total cost b.)wheather the market is willing to provide it c.)whether the government is willing to provide it d.)whether the benefits to society are equal to the total cost
a.)
What is foreign portfolio investment a.)foreign investment in a country's stocks and bonds b.)foreign governments buy pieces of land in a country c.)a foreign company opens a branch in a country d.)foreign governments invest in a country's schools and other programs
a.)
What part of the economy finances public goods a.)public sector b.)private sector c.)free riders d.)consumers
a.)
Who decided what the farmers would produce on Soviet collectives a.) the farmers b.)the military c.)the government d.)the consumers
a.)
Why has America been referred to as "the land of opportunity" a.)it provides anyone from any background the possibility of sccess through hard work b.)it provides farmers with the ability to farm with out levying taxes on the farmland c.)it provides jobs for all citizens d.)it provides paving surfaces made of gold
a.)
Why might a socialisty society have a less rigid command economy than a communist society a.)in a socialst society, various political systems may be combined with public control of the economy b.)in a socialist society, all economic and political power rest in the hands of the central government c.)in asocialist society, an authortarian government controls the economy d.)in a socialist society, the centers of economic power are under private control
a.)
How do factors such as climate, mineral resources, and rainfall have an impact on development a.)Technology can be used to allocate resources differently b.)poor climate and rainfall and lack of mineral resources complicate development c.)good climate and rainfall and lack of mineral resources complicate development d.)These things seldom have any positive or negative effect on development
b.)
How does information provided by the government influence consumer decisions a.)Consumers prevent companies from selling products revealed to be dangerous b.)Consumers do not buy products revealed to be dangerouse c.)Consumers use the information to test new products for themselves d.)Consumers buy products regardless of government information
b.)
How does the literacy of men and women nearly equal in developed countries, differ in less developed countries a.)Women have a much higher rate b.)Men have a higher rate c.)Women have a slightly higher rate d.)It does not differ
b.)
In most mixed economies, the government does NOT a.)purchase land, labor, and capital from households in the factor market b.)own all the property and confiscate all economic output c.)purchase goods and services in the product market d.)redistribute wealth through taxes and other means
b.)
The government encourages an increased level of productivity by a.)maintaing steady price controls b.) funding research and development projects at many levels c.)hiring more workers to reduce unemployment d.)regulating banks and other financial institiutions
b.)
To improve its standard of living, a nation's economy must a.) remain stable b.) grow through innovation c.) reach economic equity d.) allow the central government to make economic decisions
b.)
What does the International Monetary Fund offer to a less developed country a.)foreign grants and loans b.)policy advice and technical assistance c.)wage and price controls d.)health and education services
b.)
What happens if a nation's population grows more quickly than gross domestic product a.)population growth will not continue b.) there will be economic decline c.)the nation's resources will increase d.)there is no relatonship between the two
b.)
What is a newly industrialized country (NIC) a.)a country that has just begun to have any industry of any kind b.)a country that has shown significant improvement in industrial development c.)a country that has stopped growing its own food and developed industry instead d.)a country that has been a successful economy without the use of much industry
b.)
What was the Chinese Cultural Revolution a.)a group that tried to improve productivity without lessening Communist power b.)an attempt to embrace communism by destroying all traces of the past c.)an effort to meld old customs with modern economic freedom d.) a resurgence of belief in traditional Chinese cultural ideas
b.)
What was the purpose of the Marshall Plan a.)to contain the spread of COmmunist central economies in the 1960s b.)to help the European countries recover economically from World War 2 c.)to fund the redevelopment of the Balkan countries in the 1990s d.)to support U.S. allies in Europe during World War 2
b.)
Which of the following are considered less developed countries a.)Canada and New Zealand b.)Saudi Arabia and Poland c.) Japan and Norway d.) Spain and Portugal
b.)
Which of the following is NOT a disadvantage of a centrally planned economy a.)It usually cannot meet consumers needs and wants b.)it tries to meet explicitly stated goals c.)It does not reward innovation d.)It sacrifiees individual freedoms
b.)
Which of the following is NOT a reason for the government to provide a good or service as a public good a.)the good or service should be made available to everyone b.)increasing the number of consumers would increase the cost to a private provider c.)It would be inefficient to exclude nonpayers d.) It would be impractical to make consumers pay individually
b.)
Who owns the factors of production a.)individuals b.)households c.)firms d.)the market
b.)
Why are free market economies able to attain economic growth a.)consumers can purchase all the goods they need, which causes firms to produce more b.)competition encourages innovation, which causes growth c.)everyone is acting in their own self-intrest, which motivates market growth d.)firms keep producing more incentives to encourage households to purchase more goods
b.)
how do public goods limit a free market economy? a.)they allow connsumers to make all of the economic decisions b.)they allow government, and not consumers, to make some economic decisions c.)they allow consumers to make only occasional economic decisions d.)they do not allow consumers ot make any economic decisions
b.)
Business cycles occur in free enterprise systems because a.)the government creates public policy to create cycles b.)the efficiency of workers is not the same from season to season, but fluctuates on a regular basis annually. c.)economic decisions about factors such as prices, production, and consumption are determined by the market d.)the standard of living is very high
c.)
Government intervention in a modern economy is useful because a.)the needs and wants of modern society are always met by the marketplace b.)the marketplace has many incentives to create public works such as parks and libraries c.)governments are more able to meet some needs and wants of modern society in a way that ensures that all members of society can participate
c.)
How did China adjust to modern economic issues after the death of Mao Xedong a.)it continued to produce food in large communes b.)it used the production of steel and iron to its best advantage c.)it adopted many of the ideas of free enterprise d.)it continued the rigid adherence to central manufacturing
c.)
How does human capital contribute to develpment a.)Financiers lend money to developing countries b.)foreigners make investments in another country c.)a skilled workforce encourages foreign investment d.)people invest their money in local resources for growth
c.)
If a teacher decides to have her students volunteer at a community nursing home after school, which of the following would be a negative externality? a.)a student would enjoy himself and volunteer to spend more time with the residents b.)a student would learn a new skill from a nursing home resident c.)a student would be unable to work at her part-time job on that afternoon d.)a student would feel good about herself
c.)
Pure market economies always a.)allow the central government to make economic decisions b.) make fair or effcient decisions or allow for growth c.)base economic decisions on exchange, or trade d.)divide work along gender lines
c.)
The United States government intervenes to a.)provide competition for private firms b.)impose barriers on foreign trade c.)keep order, provide vital services, and promote the general welfare d.)restrict the banking industry
c.)
The federal government monitors and regulates AMerican banks and other financial institutions a.)because the government is determined to protect its own money b.)to keep greater control over the economy c.)to shield money from the damaging effects of economic downturns d.)to improve the standard of living
c.)
What basic principles are fundamental to American free enterprise a.)state-owned property, contracts, voluntary exchange, self-intrest, profit motive, and competition b.)economic freedom, private property, contracts, voluntary exchange, business interests, profit motive, and protection from competion c.)open opportunity, private property, contracts, voluntary exchange, profit motive, legal equality, and competition d.)economic freedom, private property, contracts, mandatory exchange, profit motive, legal equality, and competition
c.)
What is the estblishment of a business enterprise by someone who lives outside a country called a.)foreign production group b.)a multinational corporation c.)a foreign direct investment d.)an outside capitalization
c.)
Which of the following is NOT an advantage of a free market economy a.)economic efficeincy b.)economic freedom c.)economic equity d.)economic growth
c.)
Which of the following is generally a mark that a country is developed a.)low numbers of people living in cities or sububs b.) low literacy rate c.)high per capita energy use d.) high levels of people farming to feed themselves
c.)
Why do people need to buy and sell products or services a.)people need to buy and sell products to make a profit b.)we need to maintain a competitive society c.)no one is self-sufficient d.)people need to provide the market with goods and services
c.)
Why does the money that is investd i many less developed countries have to come from outside the country a.)the amounts needed are so large that they have to come from outside b.)entrepreneurs from developed countries do not want to invest in these countries c.)most residents do not have enough money to save and invest in their own countries d.)multinational corporations want to inves in these countries
c.)
Why must private ownership of property be guaranteed befor a free market economy will work a.)unemployment will be too high for the private ownership to work without the guarantee b.)the government will retain too much power if there is a guarantee c.)entrepreneurs need to be assured that they will benefit from a successful project d.)without such a guarantee, criminals can steal the profits from a good busines
c.)
an economy in which only the government makes economic decisions is a a.)mixed economy b.)traditional economy c.)centrally planned economy d.)market economy
c.)
How did their status as colonies of european powers have an effect on the development of many less developed countries a.)european use of these countries as agricultural centers continues today b.)the us of european oil keeps may former colonies in debt c.)when they become independent, they made their political systems too similar to those of european colonial powers d.)when they became independent, they relied on central planning rather than free enterprise to modernize their economies quickly
d.)
How does the United Nations Development Program use its resources a.)it provides health programs for mothers and children b.)it develops natural resources c.)it invests funds in industrialized nations d.)it works to eliminate poverty through development
d.)
How is the Russian economy adjusting to the difficulties of a centrally planned economy a.)it is enduring the difficulties b.)it is slowly changing the economy so it works c.)it is modifying it to include a few free market practices d.)it is replacing it with a market-based economy
d.)
Improved technology helps create a higher standard of living for future generations by a.)preventing drastic shifts in general price levels b.)reducing the number of unemployed workers c.)creating specialized jobs for workers d.)providing additional goods and services
d.)
The United States economy is a mixed economy a.)based on the principles of the traditional economy, but allowing some government intervention b.)based on the principles of the centrally planned economy, but limitting government intervention c.)based on the principles of the free market, allowing no government intervention d.)based on the principles of the free market, but allowing some government intervention
d.)
Traditional economes are usually a.)small, close communities that welcome change and new technology b.) large, widespread communities that welcome change and new technology c.)large, widespread communities that are able to deal effectively with environmental disaster d.)small, close communitities that avoid change and new technology
d.)
What "invisible hand" regulates the free market economy a.)incentives and efficiency b.)specialization c.)competition between firms d.)competition and self-interest
d.)
What is considered a negative effect of government regulations a.) they cut into company profits b.)they stifle competition c.)they cause higher prices for consumers d.) all of the above
d.)
Why do Americans want the government to intervene in their free enterprise economy a.)to create more goods and services b.)to provide more competition c.)to influence consumer choices d.) to protect the public interest
d.)
Why does the infant mortality rate relate to a country's level of development a.) The rate is a predictor of the adult literacy rate b.) The rate is low in a few nonindustrialized areas c.)The rate is high in some very industrialized countries d.)The rate is an indicator of nutrition and health care
d.)
Why might Soviet economic planners have favored heavy industry over the makers of consumer goods? a.)The products of heavy industry brougt in more money b.)the farmers were not able to sell their own products c.)Consumer goods are not good economic investments d.)The products of heavy industry provide material for many other industries
d.)