Question 1

In the real world, countries use a mixture of the three basic types of economic systems.

Accepted Answer

A) True 
 B)False

Question 2

Discuss the three basic types of economic systems.

Accepted Answer

Three basic economic systems are the tra...

Question 3

Which of the following is true in a market economy?

Accepted Answer

A)   Central planners determine answers to the basic economic questions.
B)   Resources are used efficiently.
C)   The distribution of wealth is equal.
D)   Information for production and distribution decisions pass directly to buyers from the government.

Question 4

What type of economic system is commonly described as being controlled by an "invisible hand"?

Accepted Answer

A)   A traditional economy.
B)   A command economy.
C)   A market economy.
D)   A communist economy.

Question 5

Which of the following is a characteristic of socialism?

Accepted Answer

A)   Rejection of central planning.
B)   Government ownership of all factors of production.
C)   Government ownership of most of the factors of production.
D)   Private ownership of all factors of production. C

Question 6

Which of the following is a characteristic of capitalism?

Accepted Answer

A)   Equality of income.
B)   Government decision-making is preferred to decentralized decision-making.
C)   Market determination of prices and quantity.
D)   Government ownership of all capital.

Question 7

The term "socialism" refers to which of the following?

Accepted Answer

A)   A religion centered on community interaction.
B)   An economic system characterized by private ownership of resources, and decentralized market allocation.
C)   An economic system characterized by government ownership of resources and centralized allocation.
D)   None of the above answers are correct.

Question 8

Economic efficiency and economic freedom are commonly cited as two major benefits of socialism.

Accepted Answer

A) True 
 B)False

Question 9

Government involvement has become so prevalent in the U.S. economy that the U.S. economy is now generally considered to be a socialist economy.

Accepted Answer

A) True 
 B)False

Question 10

The economic system that answers the What, How and For Whom questions by central authority is a:

Accepted Answer

A)   market economy.
B)   command economy
C)   traditional economy.
D)   any of these

Question 11

Which of the following is a basic question answered by an economic system?

Accepted Answer

A)   for whom goods and services are produced.
B)   how goods and services are produced.
C)   what goods and services are produced.
D)   all of these.

Question 12

Adam Smith is the father of modern economics.

Accepted Answer

A) True 
 B)False

Question 13

Centralized planning agencies are a key feature of command economies.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a characteristic of capitalism?

Accepted Answer

A)   Government ownership of all capital.
B)   Government decision-making is preferred to decentralized decision-making.
C)   Market determination of prices and quantity.
D)   Equality of income.

Question 15

What famous economist said, "By pursuing his own interest he (an individual)  frequently promotes that of the society more effectually than when he really intends to promote it?"

Accepted Answer

A)   Alfred Marshall.
B)   Adam Smith.
C)   Karl Marx.
D)   Robert L. Heilbroner. B

Question 16

Which of the following economies is an example of a mixed system?

Accepted Answer

A)   The United States.
B)   The United Kingdom.
C)   Sweden.
D)   All of these.

Question 17

Which of the following is one common criticism of capitalism?

Accepted Answer

A)   Poor product quality and little product diversity.
B)   Inefficiency of nationalized industries.
C)   Inability to adjust quickly to changing economic conditions.
D)   Inadequate environmental protection.

Question 18

What is the difference between socialism and communism? What are some examples of countries that are largely socialistic and some that are communistic?

Accepted Answer

Communism is a socialist economic system...

Question 19

Adam Smith, in his book, The Wealth of Nations, advocated:

Accepted Answer

A)   socialism.
B)   an economy guided by an "invisible hand."
C)   government control of the "invisible hand."
D)   the adoption of mercantilism.

Question 20

One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income and therefore goods and services produced.

Accepted Answer

A) True 
 B)False  True

Exam 16: Economies in Transition

In the real world, countries use a mixture of the three basic types of economic systems.

Correct AnswerverifiedShow Answer

Discuss the three basic types of economic systems.

Correct AnswerverifiedThree basic economic systems are the tra...View AnswerShow Answer

Which of the following is true in a market economy?

Correct AnswerverifiedShow Answer

What type of economic system is commonly described as being controlled by an "invisible hand"?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of socialism?

Correct AnswerverifiedC

Which of the following is a characteristic of capitalism?

Correct AnswerverifiedShow Answer

The term "socialism" refers to which of the following?

Correct AnswerverifiedShow Answer

Economic efficiency and economic freedom are commonly cited as two major benefits of socialism.

Correct AnswerverifiedShow Answer

Government involvement has become so prevalent in the U.S. economy that the U.S. economy is now generally considered to be a socialist economy.

Correct AnswerverifiedShow Answer

The economic system that answers the What, How and For Whom questions by central authority is a:

Correct AnswerverifiedShow Answer

Which of the following is a basic question answered by an economic system?

Correct AnswerverifiedShow Answer

Adam Smith is the father of modern economics.

Correct AnswerverifiedShow Answer

Centralized planning agencies are a key feature of command economies.

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of capitalism?

Correct AnswerverifiedShow Answer

What famous economist said, "By pursuing his own interest he (an individual) frequently promotes that of the society more effectually than when he really intends to promote it?"

Correct AnswerverifiedB

Which of the following economies is an example of a mixed system?

Correct AnswerverifiedShow Answer

Which of the following is one common criticism of capitalism?

Correct AnswerverifiedShow Answer

What is the difference between socialism and communism? What are some examples of countries that are largely socialistic and some that are communistic?

Correct AnswerverifiedCommunism is a socialist economic system...View AnswerShow Answer

Adam Smith, in his book, The Wealth of Nations, advocated:

Correct AnswerverifiedShow Answer

One of the strengths of a socialist economy, according to those who advocate such a system, is that government intervention will enable a more equitable distribution of income and therefore goods and services produced.

Correct AnswerverifiedTrue

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Three basic economic systems are the tra...
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C

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B

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Communism is a socialist economic system...
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True