The market system is based upon _____. a. money b. voluntary exchange c. capitalism d. profits ANSWER b
Date: September 9th, 2020
_____ a cornerstone of the market economy. a. Mutually beneficial exchange is b. A strong central bank c. Monopoly rents are d. Government regulation is ANSWER a
Date: September 9th, 2020
The idea that the public interest should be equated with those policies that produce the greatest good for the greatest number _____. a. is the utilitarian criterion b. is the Pareto optimality criterion c. is the Hobbesian criterion d. is a value free judgment ANSWER a
Date: September 9th, 2020
The right of people to receive the value of their output as determined by the market _____. a. leads to people pursuing their own selfish ends, with little regard for others b. leads individuals to produce only goods that will appeal to the masses c. provides strong incentives to produce goods that will make themselves […]
Date: September 9th, 2020
As long as the value of additional units of output exceed the opportunity cost of that output, _____. a. it will not be produced b. it likely will not be produced c. it will be produced d. it is likely to be produced ANSWER c
Date: September 9th, 2020
Which of the below statements is true? a. It is efficient to produce beyond the equilibrium output level as long as costs are low. b. The level of output that maximizes the value of an economy’s output is found at the intersection of supply and demand in a competitive market. c. Production and exchange is […]
Date: September 9th, 2020
The subject matter of public economics falls into the two general categories of _____ and _____. a. public interest; private interest b. coercion action; individual liberty c. revenue generation; government spending d. civilian activities; military duties ANSWER c
Date: September 9th, 2020
Which of these is not a valid reason for government intervention into mutually beneficial exchange? a. The market system might not function at all without government protecting certain rights b. The market system produces an efficient outcome that the majority does not like c. The government might be able to undertake some activities more efficiently […]
Date: September 9th, 2020
The market system is able to allocate resources efficiently because individuals have the right to the output they produce and _____. a. freedom of the press b. freedom of speech c. freedom of movement d. freedom of exchange ANSWER d
Date: September 9th, 2020
Total government expenditure as a percentage of GDP is lower in the United States than in Sweden. a. True b. False ANSWER a
Date: September 9th, 2020
