Question 1

All modern economies, whatever their history, have evolved into:

Accepted Answer

A)  macroeconomic structures. 
B)  microeconomic structures. 
C)  pragmatic market economies. 
D)  transcendental market economies. 
A)  macroeconomic structures. 
B)  microeconomic structures. 
C)  pragmatic market economies. 
D)  transcendental market economies. C

Question 2

What are the major transitions in the history of Western economic systems? What have all modern economic systems evolved into today?

Accepted Answer

The early economic system of the Western world was feudalism, in which tradition ruled and most individuals were peasants tied to the land and under the rule of a lord. Some were able to escape this system and set up temporary markets, which in turn evolved into towns and cities. As people began to move into these population centers, there was a shift to a mercantilist system, in which manufacturing and processing was favored above agriculture. Under this system, permission to engage in economic activity had to be obtained from local authorities and increasing trade helped foster the development of the nation-state. The Industrial Revolution brought a change to machine production, which placed a strain on the mercantilist system since individuals were frustrated at the denied opportunity to engage in economic activity. This prompted laissez-faire capitalism in the mid-1800s and today all modern economies are considered pragmatic market economies. These are economies that use markets as a central way of allocating resources, but also regulate and control those markets.

Question 3

Adam Smith argued that people's needs were met by the market because people were:

Accepted Answer

A)  generous. 
B)  selfish. 
C)  concerned about the welfare of others. 
D)  caring. 
A)  generous. 
B)  selfish. 
C)  concerned about the welfare of others. 
D)  caring. B

Question 4

Economic goods are the objects of our economic wants and are the things that:

Accepted Answer

A)  are constant in supply. 
B)  money can buy. 
C)  are never scarce. 
D)  are always impossible to place a price on. 
A)  are constant in supply. 
B)  money can buy. 
C)  are never scarce. 
D)  are always impossible to place a price on.

Question 5

An economy may be defined as:

Accepted Answer

A)  the social organization by means of which people of a given society produce and distribute economic goods. 
B)  production of material goods. 
C)  the ratio of supply and demand in a society as measured by domestic input and cost. 
D)  labor, resources and capital multiplied by political considerations in any society. 
A)  the social organization by means of which people of a given society produce and distribute economic goods. 
B)  production of material goods. 
C)  the ratio of supply and demand in a society as measured by domestic input and cost. 
D)  labor, resources and capital multiplied by political considerations in any society.

Question 6

Which of the following is NOT a determination that an economy must perform?

Accepted Answer

A)  The kinds of goods to be produced. 
B)  The amount of each good to be produced. 
C)  The resources that are to be allocated to its output. 
D)  The storage of the goods for those who are to enjoy them. 
A)  The kinds of goods to be produced. 
B)  The amount of each good to be produced. 
C)  The resources that are to be allocated to its output. 
D)  The storage of the goods for those who are to enjoy them.

Question 7

Equilibrium price is the price:

Accepted Answer

A)  on which buyers and sellers cannot agree. 
B)  at which demand exactly equals supply. 
C)  which everyone thinks is too high. 
D)  which the state determines for the good of all. 
A)  on which buyers and sellers cannot agree. 
B)  at which demand exactly equals supply. 
C)  which everyone thinks is too high. 
D)  which the state determines for the good of all.

Question 8

Karl Marx had much to say about how a communist economy would operate.

Accepted Answer

A) True 
 B)False

Question 9

Adam Smith argued that economic freedom would lead to chaos.

Accepted Answer

A) True 
 B)False

Question 10

Economic goods are the things that money can buy and that are the objects of our economic wants.

Accepted Answer

A) True 
 B)False

Question 11

As people moved into the city, the economic situation evolved into the mercantilist system, in which farming was favored over manufacturing or processing.

Accepted Answer

A) True 
 B)False

Question 12

Economic goods are only material and tangible.

Accepted Answer

A) True 
 B)False

Question 13

An economy in which the government plays no part at all is called:

Accepted Answer

A)  a pure free enterprise economy. 
B)  an absolute state economy. 
C)  a mixed economy. 
D)  a managed economy. 
A)  a pure free enterprise economy. 
B)  an absolute state economy. 
C)  a mixed economy. 
D)  a managed economy.

Question 14

What is the great economic problem that faces every modern society? What are the factors of production? How have societies attempted to solve the great economic problem?

Accepted Answer

The great economic problem facing every

Question 15

Wealth is what we call:

Accepted Answer

A)  material economic goods. 
B)  the material and nonmaterial items of our culture. 
C)  the services we desire. 
D)  the economic goods we cannot see or feel. 
A)  material economic goods. 
B)  the material and nonmaterial items of our culture. 
C)  the services we desire. 
D)  the economic goods we cannot see or feel.

Question 16

There is no such thing as a pure or absolute free enterprise economy.

Accepted Answer

A) True 
 B)False

Question 17

The demand curve, DD, shows the amount of a good buyers would be willing to purchase at different prices in the market on a certain day.

Accepted Answer

A) True 
 B)False

Question 18

Planned economies are problem free.

Accepted Answer

A) True 
 B)False

Question 19

Communism is another name for socialism.

Accepted Answer

A) True 
 B)False

Question 20

Adam Smith's concept of the invisible hand refers to:

Accepted Answer

A)  government controls. 
B)  import and export costs. 
C)  the rise and fall of prices that guide individual actions in a market. 
D)  the combined impact of foreign trade and aid on a national economy. 
A)  government controls. 
B)  import and export costs. 
C)  the rise and fall of prices that guide individual actions in a market. 
D)  the combined impact of foreign trade and aid on a national economy.

Exam 16: The Organization of Economic Activities

All modern economies, whatever their history, have evolved into:

What are the major transitions in the history of Western economic systems? What have all modern economic systems evolved into today?

Adam Smith argued that people's needs were met by the market because people were:

Economic goods are the objects of our economic wants and are the things that:

An economy may be defined as:

Which of the following is NOT a determination that an economy must perform?

Equilibrium price is the price:

Karl Marx had much to say about how a communist economy would operate.

Adam Smith argued that economic freedom would lead to chaos.

Economic goods are the things that money can buy and that are the objects of our economic wants.

As people moved into the city, the economic situation evolved into the mercantilist system, in which farming was favored over manufacturing or processing.

Economic goods are only material and tangible.

An economy in which the government plays no part at all is called:

What is the great economic problem that faces every modern society? What are the factors of production? How have societies attempted to solve the great economic problem?

Wealth is what we call:

There is no such thing as a pure or absolute free enterprise economy.

The demand curve, DD, shows the amount of a good buyers would be willing to purchase at different prices in the market on a certain day.

Planned economies are problem free.

Communism is another name for socialism.

Adam Smith's concept of the invisible hand refers to:

Social Science and Its Method

Human Origins

Origins of Western Society

Society, Culture, and Cultural Change

Geography, Demography, Ecology, and Society

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Psychology, Society, and Culture

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Stratification, Minorities, and Discrimination

The Functions and Forms of Government

Governments of the World

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