Test Bank For Microeconomics Interactive 1st Edition All Chapters - 9780134826844.pdf

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Chapterg02
gThegMarketgSystemgandgthegCirculargFlo

w

MultiplegChoicegQuestions



1. Thegmarketgsystemgisgangeconomicgsystemgthat:
A. Producesgmoregconsumerggoodsgthangcapitalggoods
B. Producesgmoregcapitalggoodsgthangconsumerggoods
C. Givesgprivategindividualsgthegrightgtogowngresourcesgusedgingproduction
D. Emphasizesgtheggovernment'sgpowergtogcontrolgmarketsgandgdirectgeconomicgactivity



2. Thegmarketgsystemgisgoftengalsogknowngas:
A. Capitalism
B. Socialism
C. Centralgplanning
D. Regulation



3. Onegelementgofgthegcommandgsystemgis:
A. Capitalism
B. Freegmarkets
C. Privategownership
D. Centralgplanning



4. Thegextensivegprivategownershipgofgpropertygresourcesgingagmarketgsystemghasgthegfollowin
ggimplications,gexcept:
A. Thegmarketgsystemgisgalsogknowngasgcapitalism
B. Tradesgthatgtakegplacegingagmarketgsystemgaregmutually-agreeablegtransactions
C. Investment,ginnovation,gandgmaintenancegofgpropertygaregfosteredgbygthegmarketgsystem
D. Thegstronggingthegsocietygcouldgaccumulategpropertygbygoverpoweringgthegweak




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5. Whichgstatementgbestgdescribesgthegmarketgsystem?
A. Entrepreneursgdirectgproductiongactivities,gandgmarketgpricesgallocateggoodsgandgservices
B. Governmentgpoliciesgdirectgproductiongactivitiesgandgallocateggoodsgandgservices
C. Governmentgpoliciesgdirectgproductiongactivities,gwhilegmarketgpricesgallocateggoodsgan
dgservices
D. Individualsgandgmarketsgallgfunctiongsmoothlygundergthegguidancegandgregulationgofgth
eggovernment



6. Ingagcommandgsystem:
A. Self-
interestgguidesgandgcommandsgindividualsgtogpursuegactionsgthatgleadgthemgtowardgachiev
inggtheirggoals
B. Thegheadgofgeachgfamilygdecidesgwhatgtogdogwithgthegfamily'sgresources
C. Theggovernmentgmakesgproductiongandgallocationgdecisions
D. Marketgtradersgcommandgwhatgoutputsgaregproducedgandghowgtheygaregallocated



7. Whichgwouldgnotgbegcharacteristicgofgagcapitalistgeconomy?
A. Governmentgownershipgofgmostgfactorsgofgproduction
B. Competitiongandgunrestrictedgmarkets
C. Reliancegongthegmarketgsystem
D. Freedomgofgenterprisegandgchoice



8. Agbasicgcharacteristicgofgagcommandgsystemgisgthat:
A. Wagesgpaidgtoglaborgareghigher
B. Governmentgownsgmostgeconomicgresources
C. Freegmarketsgaregnevergpermittedgingagcommandgeconomy
D. Governmentgplannersgplaygaglimitedgrolegingdecidinggwhatggoodsgwillgbegproduced



9. ThegeconomiesgofgIrelandgandgFrancegare:
A. Similargingthatgtheygaregbothgbasicallygcommandgsystems
B. Similargingthatgtheygaregbothgbasicallygmarketgsystems
C. DifferentgingthatgIrelandghasgagcommandgsystemgwhilegFranceghasgagmarketgsystem
D. DifferentgingthatgFranceghasgagcommandgsystemgwhilegIrelandghasgagmarketgsystem




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10. ThegeconomiesgofgNorthgKoreagandgSouthgKoreagare:
A. Similargingthatgtheygaregbothgbasicallygcommandgsystems
B. Similargingthatgtheygaregbothgbasicallygmarketgsystems
C. DifferentgingthatgNorthgKoreaghasgagcommandgsystemgwhilegSouthgKoreaghasgagmark
etgsystem
D. DifferentgingthatgSouthgKoreaghasgagcommandgsystemgwhilegNorthgKoreaghasgagmark
etgsystem



11. Laissez-fairegcapitalismgisgcharacterizedgby:
A. Veryglimitedggovernmentgrolegingthegeconomy
B. Activeggovernmentginterventiongingthegeconomy
C. Individualsgandgfirmsgabidinggbygaggovernmentgeconomicgplan
D. Agverygfairgdistributiongofgincomegandgwealth



12. Bygfreegenterprise,gwegmeangthat:
A. Productsgaregprovidedgfreegtogthosegwhogcan'tgaffordgtogbuygthem
B. Individualsgmaygobtaingresources,gorganizegproduction,gandgsellgthegresultinggoutputgingan
yglegalgwaygtheygchoose
C. Individualgproducersgaregfreegtogproducegwhatevergtheggovernmentgdecidesgaregneededgb
ygthegsociety
D. Individualsgaregfreegtogbuygwhatevergproductsgwillgsatisfygtheirgneedsgthegmost



13. Whichgofgthegfollowinggstatementsgisgcorrect?
A. Thegoperationgofgagmarketgsystemgeventuallygresultsgingangequalgdistributiongofgincome
B. Producersgareg"kings"gingagmarketgeconomygbecausegtheygdeterminegwhatgisgproduced
C. Thegmarketgsystemgisgefficientgatgallocatinggresources,gbutgnotgatgdistributinggproducts
D. Freedomgofgchoicegandgenterprisegaregessentialgelementsgofgthegmarketgsystem



14. Ingagmarketgsystem,gself-
interestgisgthegmotivatinggforcegthatgdrivesgthegdecisionsgandgactionsgofgthegfollowingggr
oups,gexcept:
A. Workers
B. Consumers
C. Publicgofficials
D. Entrepreneurs


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