1. If caviar is a normal good, a decrease in income will
cause the price of caviar to increase.
shift the demand curve for caviar to the left.
shift the demand curve for caviar to the right.
increase the production of caviar.
Question 2.The basis for a market solution to the basic economic questions is
a central market organization.
a framework for the implementation of comparative advantages.
a well-established system of property rights.
a government that never participates in economic activities.
a division of governmental functions into federal and state levels.
Question 3.If beans are inferior goods, a decrease in income will
cause beans to sell at a lower price.
increase the production of beans.
shift the demand curve for beans to the left.
shift the demand curve for beans to the right.
rotate the supply curve in a clockwise manner.
Question 4.An economic system is said to be
a market system if there is substantial central planning.
a traditional system if it relies on simple market trading.
a market system if it relies on self-interested behavior and incentives.
a command system if it relies on long-standing practices.
Question 5.When the government redistributes income, it is answering a basic economic question. Which one?
What?
How?
When?
Why?
For whom?
Question 6. In a market economy, what to produce is primarily decided by
the government.
producers.
consumers.
what resources are available.
comparative advantage.
Question 7.Capital consists of
the assets of a firm.
the assets of the government.
the assets of upper-income groups.
aids to production created by humans.
stocks and bonds.
Question 8.In a mixed economy, choices are made
by the market only.
by the government only.
mainly by the government, but somewhat by the market.
mainly by the market, but somewhat by the government.
mostly by the government, partly by capitalists, and hardly at all by the market.
Question 9.People are forced to make choices because of
competition.
pressure to conform.
scarcity.
the absence of money.
taxes.
Question 10.n a market system, property rights are enforced by
individuals only.
business only.
central planners.
government.
business and individuals, but not government.