Which of these is NOT a fundamental economic questions that must be answers?

How many goods and services will be produced?

Which is MOST likely to lead to a negative externality?

A large power plant dumps toxic waste in the Salt River.

In a market economy, income depends primarily on earnings, which depend on the

value of each person's contribution to production.

Which is NOT a characteristic of a pure market economy?

Resources are owned entirely by the government.

Which is true about a mixed economy as it differs from a command economy?

It accepts the private ownership of property.

What is the best way to increase wild African elephant population?

invite hunters to buy permits and pay to hunt elephants

Which of these situations is most likely to lead to a positive externality?

Your brother decides to go to medical school.

Why does over-pollution occur?

no one person bears the full cost of his or her actions.

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Economic Systems

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Questions 45

Answers

1
Which of these is NOT a public good?
Popeye's Chicken
National defense
street lights
lighthouses
2
Which is innovation?
all of these
A scientist invents a new product and sells it to firm.
A drycleaner uses a new way of removing wrinkles from shirts
An inventor of a new Nike applies for a patent.
3
Though mp3 players are made by many companies, one brand sells more than all others. This shows
consumer sovereignty
consumer equilibrium
consumer credit
consumer production
4
In a pure market economy the government
only participates in the economy when there is a problem.
only regulates the stock market.
doesn't exist.
makes sure that the markets operate efficiently.
5
the government stays out of the economy
quid pro quo
laissez faire
cetaris paribus
habeas corpus
6
What acts as an invisible hand?
profit
the government
All of these
Adam Smith
7
Which of these is NOT a fundamental economic questions that must be answers?
For whom will the goods and services be produced?
How many goods and services will be produced?
What goods and services will be produced?
How will the goods and services be produced?
8
Which characteristics are necessary for property rights to exist?
enforceable
recognizable
transferability
all of these
9
"Public goods" is a term used by economists to describe
services once supplied, can be obtained without payment.
All of these
programs or goods that the exclusion principle doesn't work.
lighthouses, fireworks, and police.
10
Which is MOST likely to lead to a negative externality?
Introducing electric cars reduces reliance on foreign oil
A biodegradable cleaning product become popular to consumers
A large power plant dumps toxic waste in the Salt River.
Mumps, measles, & ruebella vaccinations for elementary kids
11
If property rights are clearly defined and enforced
arguments about how property is used is less likely to occur
trades that make people better off are more likely to occur
abuse and pollution or resources is less likely.
All of these
12
You own a bike shop. The cost of a bike is $25. You earn $100 in revenue. What is the profit?
$100
$75
$125
$25
13
Which means the government protects an entrepreneur's ability to profit from a written work?
None of these
trademark
copyright
patent
14
Who bought my pony?
Dog food company, Alpo
The circus, they gave Rex a horn, turned him into a unicorn
The crazy rednecks that wanted to eat pony-meat
Elmer's glue
15
People will generally make the best choice for themselves
rational self interest
innovation
rules of the game
tragedy of the commons
16
the power of consumers to decide market economies
innovation
consumer advocacy
consumer sovereignty
capital
17
The "pie" of national wealth isn't fixed; you can bake a bigger pie by
increasing educational opportunities
becoming more efficient
All of these
producing more
18
In a market economy, income depends primarily on earnings, which depend on the
number of hours each person works.
amount of experience each worker has gained.
value of each person's contribution to production.
amount of skill each person possesses.
19
Which is NOT a characteristic of a pure market economy?
Resources are owned entirely by the government.
Market prices guide resources to their most productive use.
Resource owners have property rights.
Markets answer the fundamental economic questions.
20
Which is not required for a government?
Provide jobs for all citizens
Provide public goods
Set and enforce the rules of the game
Set and enforce property rights
21
Which has the most pure market economy?
Transylvania
Australia
Canada
Hong Kong
22
The near extinction of the bison is an example of
tragedy of the commons
positive externalities
supply and demand
negative externalities
23
Which means the government protects an entrepreneur's ability to profit from a symbol?
copyright
None of these
trademark
patent
24
Which economic term is the process of turning an invention into a marketable product?
tragedy of the commons
rules of the game
innovation
rational self interest
25
Which is true about a mixed economy as it differs from a command economy?
It accepts the private ownership of property.
It determines production of quotas of goods.
It establishes laws guaranteeing job assignments.
It regulates the price of goods and services.
26
Which economic system has government regulation of commerce & respect for property rights?
mixed economy
traditional economy
command economy
market economy
27
How do the bison at Custer State park pay for themselves?
bison are auctioned off
tourists eat bison burgers after the round up
all of these
tourists witness the round up
28
What teaches, "Leave all creative energies uninhibited?"
Mr President Meet Mr Smith
I, Pencil
A Wealth of Nations
Why Deos Economic Freedom Matter?
29
consumers have the power to direct a market economy
innovation
rules of the game
rational self interest
consumer sovereignty
30
Ideally, which of these would a pure command economy benefit the most?
the most highly educated people.
the general public.
government officials.
the wealthy.
31
What is the best way to increase wild African elephant population?
encourage legislators to pass laws to protect elephants
collect all elephants and put them in zoos
hire more game wardens
invite hunters to buy permits and pay to hunt elephants
32
The government safeguards private property through
all of these
national defense
policies
legal contracts
33
According to Adam Smith, market forces coordinate production as if by
a court ruling.
a majority rule.
an invisible hand.
a government degree.
34
Which of these situations is most likely to lead to a positive externality?
A new diaper, not biodegradable, is introduced to the market
Your brother decides to go to medical school.
A child's mother who smokes cigarettes.
All of these
35
The father of economics
David Ricardo
Adam Smith
John Stossel
Alex Smith
36
Which of these are methods to prevent the tragedy of the commons?
All of these.
change the ethics, morality, or ideology of society.
use of government regulation.
assign property rights.
37
Which video is an example of changing morality to prevent tragedy of the commons?
Lars Ulrich video
Stossel's bison video
"Crying Indian"
Friedman's response to why there are so many millionaires
38
What was the name of my pony?
Alpo
Elmer
Rex
Bucky
39
Why does over-pollution occur?
everyone is concerned about property rights
people like to clean up after others
no one person bears the full cost of his or her actions.
property rights are clearly defined
40
If people couldn't safeguard their property, they would have
a greater need to save for the future.
little reason to complete economic transactions.
no way to support themselves.
less incentive to work.
41
Car exhaust is an example of
positive externality
public good
negative externality
private good
42
formal and informal institutions the provide incentives and promotes growth
tragedy of the commons
rules of the game
circular flow model
rational self interest
43
Which means the government protects an entrepreneur's ability to profit from an invention?
trademark
copyright
patent
None of these
44
What is the role of the government in a market economy?
all of these
enforce property rights
provide public goods
set the rules of the game
45
Which economy allows consumers the most choice?
traditional
transitional
pure market
command

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