a.
a command economy
b.
a market economy
c.
a corporate economy
d.
a capitalist economy
ANSWER:
a
246. In a command economy, how are decisions made about the allocation of resources?
a.
by a lottery system
b.
by individuals and firms interacting in markets coordinated by a price system
c.
by the firms that have the most power in the market
d.
by a central planning board
ANSWER:
d
247. How does a command economy differ from a market economy?
a.
Production and distribution decisions are made by central planners in a command economy, but not in a market economy.
b.
There is scarcity in command economies, but not in market economies.
c.
Command economies are less prone to inflation than are market economies.
d.
A command economy is more efficient than a market economy because decision making is centralized.
ANSWER:
a
248. In a market economy, how are resources allocated?
a.
by central planners using a price system
b.
by decentralized planners at the local level
c.
by government bureaucracies because of the absence of a price system
d.
by individual decision makers responding to market prices
ANSWER:
d
249. In a market economy, who will receive the goods that are produced?
a.
those that business firms choose to favour
b.
those that have sufficient income and are willing to pay the asking price
c.
those that desire the goods the least
d.
those that the government views as best suited for consumption
ANSWER:
b
250. Which of the following is indicated when an economy uses large amounts of labour relative to capital?
a.
that labour wage rates will be relatively high
b.
that production is capital-intensive
c.
that production is labour-intensive
d.
that handmade goods are of better quality than machine-made goods
ANSWER:
c
251. Which of the following tends to occur in countries with high labour costs?
a.
They use more labour rather than capital in the production process.
b.
They use more capital rather than labour in the production process.
c.
They rely on only one method for the production of goods.
d.
They become relatively poor countries.
ANSWER:
b
252. In a four-quadrant graph, economics is primarily concerned with which area?
a.
upper left
b.
lower right
c.
lower left
d.
upper right
ANSWER:
d
253. What is the term for the beginning point of a graph (the 0,0 point)?
a.
the basis point
b.
variable one
c.
the origin
d.
the quadrant
ANSWER:
c
254. Which of the following graphs or charts must add up to 100 percent?
a.
a labour graph
b.
a time-series graph
c.
a bar graph
d.
a pie chart
ANSWER:
d
255. "The hotter it gets, the more water people drink." What type of relationship, if any, does this statement imply?
a.
no relationship
b.
an unequal relationship
c.
a negative slope
d.
a positive slope
ANSWER:
d
256. Most students expect that if they spend more time studying, the outcome will be improved grades in the course. Which of the following is this expectation based on?
a.