Question 1

Which of the following is not a characteristic of capitalism?

Accepted Answer

A)  Private ownership of resources. 
B)  Decentralized decision-making using markets. 
C)  Representative democracy. 
D)  Consumer sovereignty. 
A)  Private ownership of resources. 
B)  Decentralized decision-making using markets. 
C)  Representative democracy. 
D)  Consumer sovereignty.

Question 2

Adam Smith was an advocate of:

Accepted Answer

A)  mercantilism. 
B)  a nation maximizing its stock of gold. 
C)  unrestricted or free trade. 
D)  the visible hand of public interest. 
A)  mercantilism. 
B)  a nation maximizing its stock of gold. 
C)  unrestricted or free trade. 
D)  the visible hand of public interest.

Question 3

In Karl Marx's view, people under the ideal state of communism would be motivated by the principle "from each according to his ability, to each according to his enterprise."

Accepted Answer

A) True 
 B)False

Question 4

Which of the following applies to a real-world socialistic economy?

Accepted Answer

A)  Private ownership of all factors of production. 
B)  Government ownership of all factors of production. 
C)  Government ownership of most of the factors of production. 
D)  Lack of central planning. 
A)  Private ownership of all factors of production. 
B)  Government ownership of all factors of production. 
C)  Government ownership of most of the factors of production. 
D)  Lack of central planning.

Question 5

In a market economy:

Accepted Answer

A)  collective decision-making is more important than individual decision-making. 
B)  goods and services are distributed as if by an "invisible hand" to those who can not afford them. 
C)  profit provides an incentive to be productive. 
D)  the distribution of wealth is equitably distributed. 
A)  collective decision-making is more important than individual decision-making. 
B)  goods and services are distributed as if by an "invisible hand" to those who can not afford them. 
C)  profit provides an incentive to be productive. 
D)  the distribution of wealth is equitably distributed.

Question 6

Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?

Accepted Answer

A)  Prices were used to allocate resources. 
B)  Prices played the same role as in a market economy. 
C)  Prices were used to ration final goods and services but not to allocate resources. 
D)  None of these statements is descriptive. 
A)  Prices were used to allocate resources. 
B)  Prices played the same role as in a market economy. 
C)  Prices were used to ration final goods and services but not to allocate resources. 
D)  None of these statements is descriptive.

Question 7

Adam Smith argued that government should actively intervene in market to improve economic performance.

Accepted Answer

A) True 
 B)False

Question 8

An economic system characterized by private ownership of the factors of production and economic activity coordinated through a system of markets and prices is called:

Accepted Answer

A)  capitalism. 
B)  socialism. 
C)  communism. 
D)  none of these. 
A)  capitalism. 
B)  socialism. 
C)  communism. 
D)  none of these.

Which of the following is not a characteristic of capitalism?

Adam Smith was an advocate of:

In Karl Marx's view, people under the ideal state of communism would be motivated by the principle "from each according to his ability, to each according to his enterprise."

Which of the following applies to a real-world socialistic economy?

In a market economy:

Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?

Adam Smith argued that government should actively intervene in market to improve economic performance.

An economic system characterized by private ownership of the factors of production and economic activity coordinated through a system of markets and prices is called:

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

Which of the following is not a characteristic of capitalism?

Adam Smith was an advocate of:

In Karl Marx's view, people under the ideal state of communism would be motivated by the principle "from each according to his ability, to each according to his enterprise."

Which of the following applies to a real-world socialistic economy?

In a market economy:

Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?

Adam Smith argued that government should actively intervene in market to improve economic performance.

An economic system characterized by private ownership of the factors of production and economic activity coordinated through a system of markets and prices is called:

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