ECN 1500 EXAM 2025 WITH 100%
CORRECT ANSWERS
In terms of American institutions, the ___________ system is most closely connected with
_________ and the __________ is connected with ______________.
A. Economic; Locke; political; Smith.
B. Economic; Smith; political; Locke.
C. Economic; Marx; political; Jefferson.
D. Legal; Smith; Economic; Locke. - CORRECT ANSWER✔✔B. Economic; Smith; political; Locke.
In The Wealth of Nations, Adam Smith:
A. Argued that Mercantilism was a system that produced wealthy nations.
B. Argued in favor of the Market system as a source of economic growth and prosperity.
C. Focused on the role of gold as an explanation of the nature and causes of the wealth of
nations.
D. All of the above are correct. - CORRECT ANSWER✔✔A. Argued that Mercantilism was a
system that produced wealthy nations.
John Locke:
A. argued that elites have the right to inform others of the truth.
B. argued that some individuals have an inherent right to rule others.
C. argued in favor of individual rights, equality and access to the truth.
D. All of the above are correct. - CORRECT ANSWER✔✔C. argued in favor of individual rights,
equality and access to the truth.
In a Market economy,
, A. the government answers the questions of what, how, and for whom.
B. markets answer the questions of what, how, and for whom.
C. society as a whole owns the factors of production (resources).
D. Laissez faire is not an acceptable principle. - CORRECT ANSWER✔✔B. markets answer the
questions of what, how, and for whom.
A Market economy:
A. is based on coercion.
B. aligns incentives in such a way that individual decisions result in socially undesirable
outcomes.
C. typically results in goods produced efficiently as inefficient producers are allowed to fail.
D. typically results in goods produced efficiently as inefficient producers are subsidized by the
government. - CORRECT ANSWER✔✔C. typically results in goods produced efficiently as
inefficient producers are allowed to fail.
Which of the following was mentioned in the Chapter 3 lecture as an example of an American
institution?
A. English Common Law.
B. The Electoral College.
C. A culture of innovation and work.
D. All of the above. - CORRECT ANSWER✔✔D. All of the above.
Compared to the market system, both feudalism and mercantilism:
A. relied on a central government to decide what and how to produce.
B. relied on tradition to answer the three economic questions.
C. relied much less on markets to allocate resources.
D. produced rapid economic growth. - CORRECT ANSWER✔✔C. relied much less on markets to
allocate resources.
CORRECT ANSWERS
In terms of American institutions, the ___________ system is most closely connected with
_________ and the __________ is connected with ______________.
A. Economic; Locke; political; Smith.
B. Economic; Smith; political; Locke.
C. Economic; Marx; political; Jefferson.
D. Legal; Smith; Economic; Locke. - CORRECT ANSWER✔✔B. Economic; Smith; political; Locke.
In The Wealth of Nations, Adam Smith:
A. Argued that Mercantilism was a system that produced wealthy nations.
B. Argued in favor of the Market system as a source of economic growth and prosperity.
C. Focused on the role of gold as an explanation of the nature and causes of the wealth of
nations.
D. All of the above are correct. - CORRECT ANSWER✔✔A. Argued that Mercantilism was a
system that produced wealthy nations.
John Locke:
A. argued that elites have the right to inform others of the truth.
B. argued that some individuals have an inherent right to rule others.
C. argued in favor of individual rights, equality and access to the truth.
D. All of the above are correct. - CORRECT ANSWER✔✔C. argued in favor of individual rights,
equality and access to the truth.
In a Market economy,
, A. the government answers the questions of what, how, and for whom.
B. markets answer the questions of what, how, and for whom.
C. society as a whole owns the factors of production (resources).
D. Laissez faire is not an acceptable principle. - CORRECT ANSWER✔✔B. markets answer the
questions of what, how, and for whom.
A Market economy:
A. is based on coercion.
B. aligns incentives in such a way that individual decisions result in socially undesirable
outcomes.
C. typically results in goods produced efficiently as inefficient producers are allowed to fail.
D. typically results in goods produced efficiently as inefficient producers are subsidized by the
government. - CORRECT ANSWER✔✔C. typically results in goods produced efficiently as
inefficient producers are allowed to fail.
Which of the following was mentioned in the Chapter 3 lecture as an example of an American
institution?
A. English Common Law.
B. The Electoral College.
C. A culture of innovation and work.
D. All of the above. - CORRECT ANSWER✔✔D. All of the above.
Compared to the market system, both feudalism and mercantilism:
A. relied on a central government to decide what and how to produce.
B. relied on tradition to answer the three economic questions.
C. relied much less on markets to allocate resources.
D. produced rapid economic growth. - CORRECT ANSWER✔✔C. relied much less on markets to
allocate resources.
