Question 1

In a mixed economy,the government's goal is to grow the economy and maintain some measure of social equality.
Level of Learning 3: Application of principles

Accepted Answer

A) True 
 B)False

Question 2

As productivity increases,the cost of producing goods and services is likely to fall.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Question 3

Economist Thomas Malthus believed that ______________ would limit economic progress.

Accepted Answer

A)  depletion of gold reserves
B)  overpopulation
C)  the tendency of governments to levy high tax rates
D)  the inability of workers in developed nations to compete against cheap foreign laborE) B) and C)
F) B) and D)

Question 4

Resource development is:

Accepted Answer

A)  The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
B)  The study of how to increase the amount of available resources and create conditions that will make better use of these resources.
C)  The part of economics that looks at the operation of a nation's economy as a whole.
D)  The part of economics that looks at particular markets.E) A) and D)
F) All of the above

Question 5

Brain drain is the loss of the best and brightest people to other countries.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Question 6

Socialists believe that wealth should be more evenly distributed than what actually occurs in a free-market capitalistic system.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Question 7

Thomas Malthus was pessimistic about the ability of a society to achieve high standards of living for most of its citizens because he believed that:

Accepted Answer

A)  Government has a natural tendency to run deficits that would eventually bankrupt a nation.
B)  Significant population growth would result in shortages of food and resources.
C)  Owners of businesses would deliberately exploit their employees in an attempt to earn greater profits,and this would ultimately lead to a worker's revolt.
D)  High tax rates would eventually undermine people's incentives to work hard and create wealth.E) A) and B)
F) A) and C)

Question 8

The national deficit is the difference between our nation's exports and its imports.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Question 9

_________ is considered by some to be the father of modern economics.

Accepted Answer

A)  John Maynard Keynes
B)  Adam Smith
C)  Thomas Carlyle
D)  Thomas MalthusE) None of the above
F) A) and B)

Question 10

Adam Smith believed that since businesspeople are motivated to improve their own prosperity,their actions are unlikely to benefit society as a whole.
Level of Learning 2: Understanding of concepts and principles

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements provides the most accurate comparison of socialism and communism?

Accepted Answer

A)  Under socialism,the government owns most businesses,while under communism the church owns most businesses.
B)  Both socialism and communism want to achieve a more equal distribution of income and wealth,but under communism,the government takes more control over people's lives.
C)  Socialism strives for an equal distribution of income but communism wants income to go primarily to those who own and operate private businesses.
D)  Communism believes that the government should always strive to balance its budget,while socialism accepts deficit spending as the price of achieving true equality.E) B) and C)
F) A) and B)

Question 12

Socialism and communism are both variations of a free-market economy.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Question 13

A collapse in Buldovia's banking system eventually led to companies unable to borrow money to run their businesses.Firms terminated employees.These circumstances cut into consumer's purchasing power,causing a severe decline in the prices of goods and services,better known as _______.

Accepted Answer

A)  Disinflation
B)  Deflation
C)  Contra inflation
D)  OverproductionE) C) and D)
F) All of the above

Question 14

The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a basic right under capitalism?

Accepted Answer

A)  Freedom of collusion.
B)  Freedom from taxation.
C)  The right to vote.
D)  The right to compete.E) B) and C)
F) None of the above

Question 16

Workers in socialist countries often get longer vacations and more social benefits than workers in free market economies.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Question 17

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Question 18

Explain the difference between fiscal policy and monetary policy.Discuss how each of these approaches can be used to influence the state of the economy.

Accepted Answer

Fiscal policy refers to changes in the l...

Question 19

Your professor showed you an Internet video of the chair of the Federal Reserve Bank speaking to the American public.The message he is conveying indicates that Fed economists are worried about inflation and believe the best course of action would be to slow the economy.Which of the following policies is the Fed most likely to pursue?

Accepted Answer

A)  Increase taxes.
B)  Decrease interest rates.
C)  Restrict the money supply and increase interest rates.
D)  Devalue the dollar on international currency exchanges.E) B) and C)
F) A) and D)

Question 20

Under the basic principle of supply,as the price goes down,manufacturers and suppliers of a product tend to supply less of the product to the market.
Level of Learning 1: Knowledge of key terms

Accepted Answer

A) True 
 B)False

Exam 2: Understanding How Economics Affects Business

Workers in socialist countries often get longer vacations and more social benefits than workers in free market economies. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

Socialists believe that wealth should be more evenly distributed than what actually occurs in a free-market capitalistic system. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

In a mixed economy,the government's goal is to grow the economy and maintain some measure of social equality. Level of Learning 3: Application of principles

Correct Answer
verified

Thomas Malthus was pessimistic about the ability of a society to achieve high standards of living for most of its citizens because he believed that:

Correct Answer
verified

Explain the difference between fiscal policy and monetary policy.Discuss how each of these approaches can be used to influence the state of the economy.

Correct Answer
verified
Fiscal policy refers to changes in the l...
View Answer

Socialism and communism are both variations of a free-market economy. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

As productivity increases,the cost of producing goods and services is likely to fall. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

Resource development is:

Correct Answer
verified

_________ is considered by some to be the father of modern economics.

Correct Answer
verified

Correct Answer
verified

Adam Smith believed that since businesspeople are motivated to improve their own prosperity,their actions are unlikely to benefit society as a whole. Level of Learning 2: Understanding of concepts and principles

Correct Answer
verified

Brain drain is the loss of the best and brightest people to other countries. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

Which of the following is a basic right under capitalism?

Correct Answer
verified

Economist Thomas Malthus believed that ______________ would limit economic progress.

Correct Answer
verified

A collapse in Buldovia's banking system eventually led to companies unable to borrow money to run their businesses.Firms terminated employees.These circumstances cut into consumer's purchasing power,causing a severe decline in the prices of goods and services,better known as _______.

Correct Answer
verified

Under the basic principle of supply,as the price goes down,manufacturers and suppliers of a product tend to supply less of the product to the market. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

The national deficit is the difference between our nation's exports and its imports. Level of Learning 1: Knowledge of key terms

Correct Answer
verified

Which of the following statements provides the most accurate comparison of socialism and communism?

Correct Answer
verified

Exam 2: Understanding How Economics Affects Business

Workers in socialist countries often get longer vacations and more social benefits than workers in free market economies. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

Adam Smith believed the self-interest of businesspeople would lead them to create needed goods,services,and jobs. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

Socialists believe that wealth should be more evenly distributed than what actually occurs in a free-market capitalistic system. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

In a mixed economy,the government's goal is to grow the economy and maintain some measure of social equality. Level of Learning 3: Application of principles

Correct AnswerverifiedShow Answer

Thomas Malthus was pessimistic about the ability of a society to achieve high standards of living for most of its citizens because he believed that:

Correct AnswerverifiedShow Answer

Explain the difference between fiscal policy and monetary policy.Discuss how each of these approaches can be used to influence the state of the economy.

Correct AnswerverifiedFiscal policy refers to changes in the l...View AnswerShow Answer

Socialism and communism are both variations of a free-market economy. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

As productivity increases,the cost of producing goods and services is likely to fall. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

Resource development is:

Correct AnswerverifiedShow Answer

_________ is considered by some to be the father of modern economics.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Adam Smith believed that since businesspeople are motivated to improve their own prosperity,their actions are unlikely to benefit society as a whole. Level of Learning 2: Understanding of concepts and principles

Correct AnswerverifiedShow Answer

Brain drain is the loss of the best and brightest people to other countries. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

Which of the following is a basic right under capitalism?

Correct AnswerverifiedShow Answer

Economist Thomas Malthus believed that ______________ would limit economic progress.

Correct AnswerverifiedShow Answer

A collapse in Buldovia's banking system eventually led to companies unable to borrow money to run their businesses.Firms terminated employees.These circumstances cut into consumer's purchasing power,causing a severe decline in the prices of goods and services,better known as _______.

Correct AnswerverifiedShow Answer

Under the basic principle of supply,as the price goes down,manufacturers and suppliers of a product tend to supply less of the product to the market. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

The national deficit is the difference between our nation's exports and its imports. Level of Learning 1: Knowledge of key terms

Correct AnswerverifiedShow Answer

Which of the following statements provides the most accurate comparison of socialism and communism?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Fiscal policy refers to changes in the l...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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