Which of the following is a distinguishing feature of a command system?
A.private ownership of all capital
B. central planning
C.heavy reliance on markets
D.widespread dispersion of economic power
B. Central Planning
Which of the following is a distinguishing feature of laissez-faire capitalism?
A. public ownership of all capital
B. central planning
C. minimal government intervention
D. a circular flow of goods, resources, and money
C. Minimal gov't intervention
Examples of command economies are
A. the United States and Japan.
B. Sweden and Norway.
C. Mexico and Brazil.
D. Cuba and North Korea
D. Cuba and North Korea
Of the following countries, which one exhibits the characteristics of a market economy?
C. North Korea
The French term "laissez-faire" means
A. "there is no free lunch."
B. "let it be."
C. "circular flow."
D. "public ownership."
B. "Let it be"
An economic system
A. requires a grouping of private markets linked to one another.
B. is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem.
C. requires some sort of centralized authority (such as government) to coordinate economic activity.
D. is a plan or scheme that allows a firm to make money at some other firm's expense.
B.is a particular set of institutional arrangements and a coordinating mechanism used to respond to the economizing problem.
The term "laissez-faire" suggests that
A. land and other natural resources should be privately owned, but capital should be publicly owned.
B. land and other natural resources should be publicly owned, but capital should be privately owned.
C. government should not interfere with the operation of the economy.
D. government action is absolutely necessary if the economy is to achieve full employment and full production.
C.government should not interfere with the operation of the economy.
Economic systems differ according to which two main characteristics?
A. who owns the factors of production and the methods used to coordinate economic activity
B. the technology used in production and the quantity and quality of natural resources
C. how goods are produced and who gets them
D. the political system in place and the degree of scarcity facing the economy
A. Who owns the factors of production and the methods used to coordinate economic activity
Command systems are also known as
A. market systems.
B. pure capitalism.
C. laissez-faire capitalism.
A fundamental difference between the command system and laissez-faire capitalism is that, in command systems,
A. the division of output is decided by central planning rather than by individuals operating freely through markets.
B. all economic decisions are made by the government, whereas there is no government in laissez-faire capitalism.
C. scarcity does not exist, whereas it does in laissez-faire capitalism.
money is not used, whereas it is in laissez-faire capitalism
A.the division of output is decided by central planning rather than by individuals operating freely through markets.
Which of the following is not a typical characteristic of a market system?
A. private property
B. freedom of enterprise
C. government ownership of most property resources
D. competition in product and resource markets
C. Gov't ownership of most property resources
Which of the following is a fundamental characteristic of the market system?
A. property rights
B. central planning by government
C. unselfish behavior
D. government-set wages and prices
A. Property rights
Property rights are important because they
A. ensure an equal distribution of income.
B. encourage cooperation by improving the chances of mutually agreeable transactions.
C. guarantee that any exchange will make all parties better off than prior to the exchange.
D. allow the government to control how resources are allocated.
B.encourage cooperation by improving the chances of mutually agreeable transactions.
A. discourages cooperation because people don't want to part with what they own.
B. discourages innovation, as people are often afraid to risk losing their own property.
C. encourages owners to maintain or improve their property so as to preserve or enhance value.
D. does everything indicated by the other answers.
C. Encourages owners to maintain or improve their property so as to preserve or enhance value
Copyrights and trademarks are examples of
A. capital goods.
B. human capital.
C. property rights.
D. public goods
C. Property Rights
Freedom of enterprise
A. is a characteristic that is common to most economic systems.
B. in a market system means that entrepreneurs can obtain and use economic resources without any legal restraint.
C. allows businesses, within broad limits, to choose what goods to produce.
D. refers primarily to the right of consumers to purchase what they want.
C.allows businesses, within broad limits, to choose what goods to produce
The main mechanism that regulates the market system is
B. private property.
D. freedom of enterprise and choice
Broadly defined, competition involves
A. private property and freedom of expression.
B. independently acting buyers and sellers and freedom to enter or leave markets.
C. increasing opportunity costs and diminishing marginal utility.
capital goods and division of labor.
B.independently acting buyers and sellers and freedom to enter or leave markets.
Competition means that
A. sellers can manipulate market price by causing product scarcities.
B. there are independently acting buyers and sellers in each market.
C. a product can be purchased at a number of different prices.
D. there is more than one seller in a market.
B. There are independently acting buyers and sellers in each market
The division of labor means that
A. labor markets are geographically segmented.
B. unskilled workers outnumber skilled workers.
C. workers specialize in various production tasks.
D. each worker performs a large number of tasks
C. Workers specialize in various production tasks.
Specialization in production is important primarily because it
A. results in greater total output.
B. allows society to avoid the coincidence-of-wants problem.
C. allows society to trade by barter.
D. allows society to have fewer capital goods.
A. Results in greater total output.
Specialization—the division of labor—enhances productivity and efficiency by
A. allowing workers to take advantage of existing differences in their abilities and skills.
B. avoiding the time loss involved in shifting from one production task to another.
C. allowing workers to develop skills by working on one, or a limited number, of tasks.
D. all of the means identified in the other answers
D. All of the means identified in the other answers
Specialization in production is economically beneficial primarily because it
A. allows everyone to have a job that he or she likes.
B. permits the production of a larger output with fixed amounts of resources.
C. facilitates trade by bartering.
D. guarantees full employment.
B. Permits to production of a larger output with fixed amounts of resources.
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