Exam 3: Economic Institutions

In the United States, the government regulates business in its role as a "referee." Which of the following is not among the laws regulating the interaction between households and businesses?

In feudalism, serfdom was maintained primarily through:

Suppose that at the current price, waffle producers offer 5 million waffles for sale, but consumers want to buy 6 million. When the market coordinates the demand and supply for waffles, the price of waffles will:

When there are market externalities, the market allocation of resources will be optimal.

Which of the following occur in the real world?

When a government bans prostitution, it may do so because it considers prostitution to be a:

Most economies today are:

One advantage of a corporation over a sole proprietorship is:

A business is likely a sole proprietorship if:

Which of the following is the best example of a macroeconomic externality?

Certificates of ownership of a company are called:

When a government intervenes in an economy in a way that influences the relationship between households and businesses, it is:

A company that explicitly takes on a social mission in addition to profit-seeking is considered a:

Market economies are based on:

Corporate advertising:

The market where businesses sell goods and services to households and the government is called the:

When the Sarbanes-Oxley Act that established new accounting rules was passed, analysts suggested that the new rules would not improve protections for the investing public, but it would result in more work for accountants. If the professors are right, these regulations are an example of:

Which of the following is a characteristic of a market economy?

The Group of Seven is an informal international institution that is comprised primarily of the:

Market failures: