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 […]
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
If government did not individual rights, the efficiency of a market economy_____. a. would decline b. would be about the same c. would increase d. could possibly decline or possibly increase ANSWER a
Government institutions that protect the rights of individuals are ______. a. the executive, legislative, and judicial branches of government b. federal, state, and local governments c. federal agencies such as OSHA, FEC, and the FCC d. police, military branches, and the court system ANSWER d
The market system is based upon _____. a. money b. voluntary exchange c. capitalism d. profits ANSWER b
_____ 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
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
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 […]
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
U.S Postal Service spending is generally not included in total government expenditures. a. True b. False ANSWER a
