Lucas Economics Chapter 2

Question 1

What country successfully rebuilt its economy after a war in the 1950s by opening its markets to world trade?

Accepted Answer

South Korea

Question 2

Which of these countries have an economy most similar to that of the former Soviet Union?

Accepted Answer

North Korea

Question 3

What kind of economy offers uniformity of wages regardless of individual productivity?

Accepted Answer

command and socialist

Question 4

Which of these statements describes a disadvantage of traditional economies?

Accepted Answer

New ways of doing things are discouraged

Question 5

How are economic transactions shaped in a traditional economy?

Accepted Answer

Elders and ancestors make certain that things are done in specific ways.

Question 6

Socialist economies are more likely to provide citizens with goods they may otherwise not be able to afford

Accepted Answer

True

Question 7

Which of these helps explain why mixed economies develop

Accepted Answer

People become unhappy with aspects of their current economy

Question 8

Vouchers are certificates used to buy government owned land during privatization.

Accepted Answer

True

Question 9

Which of these economic systems have the least in common?

Accepted Answer

command economy and capitalism

Question 10

Singapore is a capitalist country

Accepted Answer

True

Question 11

Which of the following explains why products made under a command economy are more likely to be low quality?

Accepted Answer

The workers who make them have little incentive to make them well.

Question 12

Which of these of the is the most striking example of the costs of pure capitalism?

Accepted Answer

Great Depression

Question 13

Collectivization is the forced common ownerships of a factor of production.

Accepted Answer

True

Question 14

Cuba is a capitalist country

Accepted Answer

False

Question 15

In what kind of economy does the government own some of the factors of production?

Accepted Answer

socialist

Question 16

Which of the following is a feature of the Japanese capitalism that would be illegal in the US?

Accepted Answer

Keiretsu

Question 17

What country has the most striking example of successful privatization?

Accepted Answer

China

Question 18

Who did Karl Marx believe would be the beneficiaries of socialism?

Accepted Answer

workers

Question 19

A market is a mechanism through which buyers and sellers of an economic product or service come together.

Accepted Answer

True

Questions 19