Solved by verified expert :1. In a market system,
the what decision is made most basically by
A) representative
government.
B) national
planning.
C) bankers.
D) advertisers and
their ability to persuade buyers.
E) spending
decisions of those with money.
2. “Distribution”
in economics refers to:
A) retailing,
wholesaling, and transportation.
B) what.
C) how.
D) for
whom.
E) none
of the above.
3. The economic role of
government in mixed economies can include:
A) provision
of public goods.
B) tax
collections.
C) income
redistribution.
D) all
of the above.
E) none
of the above.
4. A market is in
equilibrium when:
A) there is a
surplus of goods available for sale.
B) the price of
the product is equal to zero.
C) the price of
the product simultaneously meets the desires of both buyers and sellers.
D) the government
establishes a proper price for each good produced and sold.
E) none of the
above.
Topic:
Simple Application
5. If price is a signal
in a market economy, what signal does it send to producers when the price of
oil goes up?
A) suppliers should
produce more gasoline.
B) buyers should
purchase even more gasoline.
C) government should
decrease taxes on gasoline.
D) government should
place price controls on the market for gasoline.
E) suppliers should
produce less gasoline.
6. In a modern market
economy, the “invisible hand,” or pricing system:
A) solves the what
and for whom, while engineers solve the how.
B) solves the what
and how, while the for whom is primarily determined by the tax laws passed by
Congress.
C) largely solves
the three basic problems of economic organization.
D) is unable to
solve any basic problems with precision, because of the intensity of perfect
competition.
E) largely solves
the three basic problems of economic organization only during recessions.
7. Imperfect competition
is defined by:
A) unethical
business practices.
B) only
a few buyers in a market.
C) firm’s
ability to affect price.
D) advertising.
E) economies
of large-scale production.
