Question 1

Karl Marx was a(n):

Accepted Answer

A)  19th century German philosopher. 
B)  18th century Russian economist. 
C)  14th century Polish banker. 
D)  19th century Russian journalist. 
A)  19th century German philosopher. 
B)  18th century Russian economist. 
C)  14th century Polish banker. 
D)  19th century Russian journalist.

Question 2

One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income.

Accepted Answer

A) True 
 B)False

Question 3

The economic system that answers the What, How and For Whom questions using prices determined by the interaction of supply and demand is a:

Accepted Answer

A)  market economy. 
B)  command economy 
C)  soviet economy. 
D)  traditional economy. 
A)  market economy. 
B)  command economy 
C)  soviet economy. 
D)  traditional economy.

Question 4

The economic system characterized by private ownership of resources and market is:

Accepted Answer

A)  capitalism. 
B)  communism. 
C)  fascism. 
D)  socialism. 
A)  capitalism. 
B)  communism. 
C)  fascism. 
D)  socialism.

Question 5

Which of the following is a criticism of capitalism?

Accepted Answer

A)  Unequal distribution of income. 
B)  Failure to protect the environment. 
C)  Exploitation of workers. 
D)  All of these. 
A)  Unequal distribution of income. 
B)  Failure to protect the environment. 
C)  Exploitation of workers. 
D)  All of these.

Question 6

In a command economy, the basic economic questions are answered by:

Accepted Answer

A)  central authority. 
B)  individual buyers and sellers. 
C)  the traditional methods. 
D)  none of these. 
A)  central authority. 
B)  individual buyers and sellers. 
C)  the traditional methods. 
D)  none of these.

Question 7

Adam Smith's basic economic philosophy stated in The Wealth of Nations can be stated as:

Accepted Answer

A)  laissez faire. 
B)  allow to act. 
C)  the least government is best. 
D)  all of these. 
A)  laissez faire. 
B)  allow to act. 
C)  the least government is best. 
D)  all of these.

Question 8

In a command economy, the three economic questions are answered by which of the following? ​

Accepted Answer

A)  ​The production and consumption choices made by sellers and buyers in decentralized markets. 
B)  ​A cartel of major transnational corporations, government agencies, and consumer advocates. 
C)  ​A trilateral commission of major corporations, elected officials, and economists. 
D)  ​A central authority such as a peoples' committee or a dictator. 
A)  ​The production and consumption choices made by sellers and buyers in decentralized markets. 
B)  ​A cartel of major transnational corporations, government agencies, and consumer advocates. 
C)  ​A trilateral commission of major corporations, elected officials, and economists. 
D)  ​A central authority such as a peoples' committee or a dictator.

Question 9

The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:

Accepted Answer

A)  market economy. 
B)  command economy 
C)  soviet economy. 
D)  traditional economy. 
A)  market economy. 
B)  command economy 
C)  soviet economy. 
D)  traditional economy.

Question 10

Which of the following economic systems answers the basic economic questions by copying the previous generation?

Accepted Answer

A)  Traditional economy. 
B)  Command economy. 
C)  Market economy. 
D)  Capitalism. 
A)  Traditional economy. 
B)  Command economy. 
C)  Market economy. 
D)  Capitalism.

Question 11

The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best classified as:

Accepted Answer

A)  traditional economies. 
B)  command economies. 
C)  market economies. 
D)  decentralized economies. 
A)  traditional economies. 
B)  command economies. 
C)  market economies. 
D)  decentralized economies.

Question 12

In Marx's ideal communist society, the state:

Accepted Answer

A)  actively promotes income incentives. 
B)  follows the doctrine of laissez faire. 
C)  owns resources and conducts planning. 
D)  does not exist. 
A)  actively promotes income incentives. 
B)  follows the doctrine of laissez faire. 
C)  owns resources and conducts planning. 
D)  does not exist.

Question 13

Socialism is an economic system characterized by:

Accepted Answer

A)  private ownership of resources and market decision-making. 
B)  government ownership of resources and centralized decision-making. 
C)  cooperation, sharing, and little central government. 
D)  a complex structure of rules and traditions that dictates decision-making. 
A)  private ownership of resources and market decision-making. 
B)  government ownership of resources and centralized decision-making. 
C)  cooperation, sharing, and little central government. 
D)  a complex structure of rules and traditions that dictates decision-making.

Question 14

In a market economy, buyers and sellers communicate their intentions to one another through:

Accepted Answer

A)  government planners. 
B)  negotiations overseen by government agencies. 
C)  elected officials. 
D)  prices. 
A)  government planners. 
B)  negotiations overseen by government agencies. 
C)  elected officials. 
D)  prices.

Question 15

Which of the following is a key criticism of the market economy as a system of allocation?

Accepted Answer

A)  Goods and services are allocated unequally based on ability to pay. 
B)  Producers have strong incentives to innovate because successful innovators are rewarded with higher profit. 
C)  Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace. Since price is freely set based on supply and demand, there are few shortages or surpluses. 
D)  None of the above. 
A)  Goods and services are allocated unequally based on ability to pay. 
B)  Producers have strong incentives to innovate because successful innovators are rewarded with higher profit. 
C)  Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace. Since price is freely set based on supply and demand, there are few shortages or surpluses. 
D)  None of the above.

Question 16

Who was one of the first proponents of employing market economies instead of command economies?

Accepted Answer

A)  Robert Heilbroner. 
B)  Karl Marx. 
C)  Jeffrey Sachs. 
D)  Adam Smith. 
A)  Robert Heilbroner. 
B)  Karl Marx. 
C)  Jeffrey Sachs. 
D)  Adam Smith.

Question 17

An economic system answers the ________, ________, and _________ questions.

Accepted Answer

A)  ​when to produce, where to produce, why we should produce 
B)  ​wealth, greed, power 
C)  ​money, markets, the business cycle 
D)  ​what to produce, how to produce, for whom to produce 
A)  ​when to produce, where to produce, why we should produce 
B)  ​wealth, greed, power 
C)  ​money, markets, the business cycle 
D)  ​what to produce, how to produce, for whom to produce

Question 18

Under socialism, no markets can operate at all.

Accepted Answer

A) True 
 B)False

Question 19

Describe the differences between capitalism and socialism.

Accepted Answer

Capitalism is characterized by private o

Question 20

A traditional system solves basic economic questions by long-standing customs.

Accepted Answer

A) True 
 B)False

Karl Marx was a(n):

One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income.

The economic system that answers the What, How and For Whom questions using prices determined by the interaction of supply and demand is a:

The economic system characterized by private ownership of resources and market is:

Which of the following is a criticism of capitalism?

In a command economy, the basic economic questions are answered by:

Adam Smith's basic economic philosophy stated in The Wealth of Nations can be stated as:

In a command economy, the three economic questions are answered by which of the following?

The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:

Which of the following economic systems answers the basic economic questions by copying the previous generation?

The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best classified as:

In Marx's ideal communist society, the state:

Socialism is an economic system characterized by:

In a market economy, buyers and sellers communicate their intentions to one another through:

Which of the following is a key criticism of the market economy as a system of allocation?

Who was one of the first proponents of employing market economies instead of command economies?

An economic system answers the , , and _ questions.

Under socialism, no markets can operate at all.

Describe the differences between capitalism and socialism.

A traditional system solves basic economic questions by long-standing customs.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Growth and the

Filters

Exam 16: Economies in Transition

Karl Marx was a(n):

One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income.

The economic system that answers the What, How and For Whom questions using prices determined by the interaction of supply and demand is a:

The economic system characterized by private ownership of resources and market is:

Which of the following is a criticism of capitalism?

In a command economy, the basic economic questions are answered by:

Adam Smith's basic economic philosophy stated in The Wealth of Nations can be stated as:

In a command economy, the three economic questions are answered by which of the following? ​

The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:

Which of the following economic systems answers the basic economic questions by copying the previous generation?

The economic systems of the former Soviet Union, the People's Republic of China, and Cuba are best classified as:

In Marx's ideal communist society, the state:

Socialism is an economic system characterized by:

In a market economy, buyers and sellers communicate their intentions to one another through:

Which of the following is a key criticism of the market economy as a system of allocation?

Who was one of the first proponents of employing market economies instead of command economies?

An economic system answers the ________, ________, and _________ questions.

Under socialism, no markets can operate at all.

Describe the differences between capitalism and socialism.

A traditional system solves basic economic questions by long-standing customs.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Consumer Choice Theory

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Growth and the

Filters

In a command economy, the three economic questions are answered by which of the following?

An economic system answers the , , and _ questions.