Question 1

While competition in a market economy can -----------, it also tends to produce ---------.

Accepted Answer

A)  be ruthless, shoddy products 
B)  stimulate productivity, greater inequalities in wealth 
C)  encourage innovation, a lazy workforce 
D)  limit product diversity, economic cycles of boom and bust 
E)  increase employment, high inflation 
A)  be ruthless, shoddy products 
B)  stimulate productivity, greater inequalities in wealth 
C)  encourage innovation, a lazy workforce 
D)  limit product diversity, economic cycles of boom and bust 
E)  increase employment, high inflation B

Question 2

The nonhuman productive input from other resources including financial resources, machinery, and technology is known as

Accepted Answer

A)  land. 
B)  capital. 
C)  collateral. 
D)  imports. 
E)  final goods. 
A)  land. 
B)  capital. 
C)  collateral. 
D)  imports. 
E)  final goods. B

Question 3

In a command economy, the value of goods and services is determined by

Accepted Answer

A)  the level of demand. 
B)  the costs of production. 
C)  the amount some other actor is willing to pay. 
D)  the marginal cost. 
E)  what the state deems appropriate. 
A)  the level of demand. 
B)  the costs of production. 
C)  the amount some other actor is willing to pay. 
D)  the marginal cost. 
E)  what the state deems appropriate. E

Question 4

The use of tariffs and quotas is

Accepted Answer

A)  the strategy of a state committed to free trade. 
B)  an attempt to insure that only high-quality goods are available. 
C)  a strategy to stimulate demand. 
D)  an effort to limit imports. 
E)  a strategy to provide consumers with more inexpensive goods. 
A)  the strategy of a state committed to free trade. 
B)  an attempt to insure that only high-quality goods are available. 
C)  a strategy to stimulate demand. 
D)  an effort to limit imports. 
E)  a strategy to provide consumers with more inexpensive goods.

Question 5

In a mixed economy,

Accepted Answer

A)  most key infrastructure systems and financial resources are owned by individuals. 
B)  production decisions are set forth in a detailed economic plan. 
C)  value is primarily determined by the state. 
D)  the state attempts to balance competition and state control. 
E)  there is a favorable mix of goods and services. 
A)  most key infrastructure systems and financial resources are owned by individuals. 
B)  production decisions are set forth in a detailed economic plan. 
C)  value is primarily determined by the state. 
D)  the state attempts to balance competition and state control. 
E)  there is a favorable mix of goods and services.

Question 6

In which way is an active state least likely to affect the overall political economy?

Accepted Answer

A)  Facilitating the invisible hand of the market 
B)  Acting as a firm 
C)  Regulating the behavior of producers 
D)  Transferring payments to households 
E)  Raising taxes 
A)  Facilitating the invisible hand of the market 
B)  Acting as a firm 
C)  Regulating the behavior of producers 
D)  Transferring payments to households 
E)  Raising taxes

Question 7

Which of these are significant problems associated with using GDP to measure the prosperity of a country's population?

Accepted Answer

A)  Different countries produce different kinds of goods. 
B)  Many individuals have a level of prosperity that is different from their country's average production level per person. 
C)  It is difficult to calculate the value of certain kinds of goods (e.g., housework, the underground economy). 
D)  B and C but not A 
E)  A, B and C 
A)  Different countries produce different kinds of goods. 
B)  Many individuals have a level of prosperity that is different from their country's average production level per person. 
C)  It is difficult to calculate the value of certain kinds of goods (e.g., housework, the underground economy). 
D)  B and C but not A 
E)  A, B and C

Question 8

A benefit of using "purchasing power parity" (PPP) is that

Accepted Answer

A)  it considers the size of the population in comparing countries' relative wealth. 
B)  it controls for the value of a country's currency in the world market. 
C)  it improves between-country comparisons of the monetary value of the bundle of goods consumers can afford. 
D)  it takes into account the value of goods produced by all workers within the country's economy, not just citizens. 
E)  it improves the operation of fair trade between countries. 
A)  it considers the size of the population in comparing countries' relative wealth. 
B)  it controls for the value of a country's currency in the world market. 
C)  it improves between-country comparisons of the monetary value of the bundle of goods consumers can afford. 
D)  it takes into account the value of goods produced by all workers within the country's economy, not just citizens. 
E)  it improves the operation of fair trade between countries.

Question 9

"Opportunity cost" refers to

Accepted Answer

A)  what someone is willing to pay or trade for a good. 
B)  the monetary loss an economic factor suffers if there is oversupply. 
C)  the tax a business must pay to enter a new market. 
D)  a government tax used to redistribute resources. 
E)  the amount of funds necessary for an innovation. 
A)  what someone is willing to pay or trade for a good. 
B)  the monetary loss an economic factor suffers if there is oversupply. 
C)  the tax a business must pay to enter a new market. 
D)  a government tax used to redistribute resources. 
E)  the amount of funds necessary for an innovation.

Question 10

Compare the two ideal-type political economies in terms of control of factors of production, production decisions, determination of value, distribution decisions, and the role of the state.

Accepted Answer

The two ideal-type political economies t

Question 11

In which of the following systems is economic competition most intense?

Accepted Answer

A)  Capitalism 
B)  Communism 
C)  Fascism 
D)  Socialism 
E)  Corporatism 
A)  Capitalism 
B)  Communism 
C)  Fascism 
D)  Socialism 
E)  Corporatism

Question 12

In which of the following ways can the state affect the political economy?

Accepted Answer

A)  By purchasing goods from producers 
B)  By producing goods 
C)  By regulating the actions of consumers or producers 
D)  By A and B , but not C 
E)  By A, B, and C 
A)  By purchasing goods from producers 
B)  By producing goods 
C)  By regulating the actions of consumers or producers 
D)  By A and B , but not C 
E)  By A, B, and C

Question 13

The basic economic principle in which price is determined by how much consumers want a given product is known as

Accepted Answer

A)  the efficiency principle. 
B)  the circular-flow model. 
C)  supply and demand. 
D)  the factors of production balance. 
E)  supply-side economics. 
A)  the efficiency principle. 
B)  the circular-flow model. 
C)  supply and demand. 
D)  the factors of production balance. 
E)  supply-side economics.

Question 14

The role of the state in the command economy is --------- while in the market economy the state is more ----------.

Accepted Answer

A)  indirect, proactive 
B)  dominant, passive 
C)  reliable, unpredictable 
D)  demand oriented, supply oriented 
E)  like a firm, like a household 
A)  indirect, proactive 
B)  dominant, passive 
C)  reliable, unpredictable 
D)  demand oriented, supply oriented 
E)  like a firm, like a household

Question 15

Any individual can act as either a(n)------, transforming productive resources, or as a(n)-------, acquiring final goods.

Accepted Answer

A)  consumer, household 
B)  household, producer 
C)  factory, household 
D)  exporter, importer 
E)  firm, consumer 
A)  consumer, household 
B)  household, producer 
C)  factory, household 
D)  exporter, importer 
E)  firm, consumer

Question 16

Give two significant examples which illustrate each of the following ways in which the state affects the political economy of the United States (or another actual/hypothetical country) and explain why such intervention is attempted:A) asserting direct control over factors of productionB) regulating the behavior of economic actorsC) extracting resources from economic actors

Accepted Answer

One significant example of the state ass

Question 17

Which of the following is NOT a major factor of production?

Accepted Answer

A)  Land 
B)  Exports 
C)  Labor 
D)  Capital 
E)  A and B 
A)  Land 
B)  Exports 
C)  Labor 
D)  Capital 
E)  A and B

Question 18

Which of the following is most likely to be a shortcoming of a command economy?

Accepted Answer

A)  Insufficient incentives for high productivity 
B)  Severe economic cycles 
C)  Production for profit rather than need 
D)  Excessive competition 
E)  All of the above 
A)  Insufficient incentives for high productivity 
B)  Severe economic cycles 
C)  Production for profit rather than need 
D)  Excessive competition 
E)  All of the above

Question 19

A saying repeated twice in the Debate in 8 is: If you are not a communist at 20, you have no ---------; if you are still a communist at 40, you have no -------.

Accepted Answer

A)  understanding, knowledge. 
B)  soul, success. 
C)  heart, head 
D)  ideals, experience. 
E)  dreams, motivation 
A)  understanding, knowledge. 
B)  soul, success. 
C)  heart, head 
D)  ideals, experience. 
E)  dreams, motivation

Question 20

Which of the following is most likely to be a shortcoming of a market economy?

Accepted Answer

A)  Production of poor-quality goods 
B)  Inadequate capital for investment 
C)  Substantial inequality in the distribution of resources 
D)  Over-centralization and inflexibility 
E)  Severe oversupply or undersupply of desired goods 
A)  Production of poor-quality goods 
B)  Inadequate capital for investment 
C)  Substantial inequality in the distribution of resources 
D)  Over-centralization and inflexibility 
E)  Severe oversupply or undersupply of desired goods

While competition in a market economy can -----------, it also tends to produce ---------.

The nonhuman productive input from other resources including financial resources, machinery, and technology is known as

In a command economy, the value of goods and services is determined by

The use of tariffs and quotas is

In a mixed economy,

In which way is an active state least likely to affect the overall political economy?

Which of these are significant problems associated with using GDP to measure the prosperity of a country's population?

A benefit of using "purchasing power parity" (PPP) is that

"Opportunity cost" refers to

Compare the two ideal-type political economies in terms of control of factors of production, production decisions, determination of value, distribution decisions, and the role of the state.

In which of the following systems is economic competition most intense?

In which of the following ways can the state affect the political economy?

The basic economic principle in which price is determined by how much consumers want a given product is known as

The role of the state in the command economy is --------- while in the market economy the state is more ----------.

Any individual can act as either a(n)------, transforming productive resources, or as a(n)-------, acquiring final goods.

Which of the following is NOT a major factor of production?

Which of the following is most likely to be a shortcoming of a command economy?

A saying repeated twice in the Debate in 8 is: If you are not a communist at 20, you have no ---------; if you are still a communist at 40, you have no -------.

Which of the following is most likely to be a shortcoming of a market economy?

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Political Theory and Political Beliefs

Political Actions

Influences on Beliefs and Actions

Political Systems, States, and Nations

Political Institutions I: Institutional Structures

Political Institutions II: Institutional Arrangements

Public Policy, Power, and Decision

Change and Political Development

Politics Across Borders

Political Violence

The Developed Countries of the Global North

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Exam 8: Political Economy

While competition in a market economy can -----------, it also tends to produce ---------.

The nonhuman productive input from other resources including financial resources, machinery, and technology is known as

In a command economy, the value of goods and services is determined by

The use of tariffs and quotas is

In a mixed economy,

In which way is an active state least likely to affect the overall political economy?

Which of these are significant problems associated with using GDP to measure the prosperity of a country's population?

A benefit of using "purchasing power parity" (PPP) is that

"Opportunity cost" refers to

Compare the two ideal-type political economies in terms of control of factors of production, production decisions, determination of value, distribution decisions, and the role of the state.

In which of the following systems is economic competition most intense?

In which of the following ways can the state affect the political economy?

The basic economic principle in which price is determined by how much consumers want a given product is known as

The role of the state in the command economy is --------- while in the market economy the state is more ----------.

Any individual can act as either a(n)------, transforming productive resources, or as a(n)-------, acquiring final goods.

Which of the following is NOT a major factor of production?

Which of the following is most likely to be a shortcoming of a command economy?

A saying repeated twice in the Debate in 8 is: If you are not a communist at 20, you have no ---------; if you are still a communist at 40, you have no -------.

Which of the following is most likely to be a shortcoming of a market economy?

Politics and Knowledge

Political Theory and Political Beliefs

Political Actions

Influences on Beliefs and Actions

Political Systems, States, and Nations

Political Institutions I: Institutional Structures

Political Institutions II: Institutional Arrangements

Public Policy, Power, and Decision

Change and Political Development

Politics Across Borders

Political Violence

The Developed Countries of the Global North

The Developing Countries of the Global South

The Transitional Developed Countries

Filters