9) The institution that coordinates actions of consumers and producers to establish prices for goods and services is known as:
A) a market.
B) a monopoly.
C) a production possibilities curve.
D) consumer sovereignty.
10) A major argument for economic growth is that it:
A) creates an equal distribution of income.
B) protects common property resources.
C) leads to a higher standard of living.
D) reduces the amount of taxation.
11) One of the basic economic defences of economic growth rests on the conclusion that:
A) growth makes workers less obsolete and more secure in employment.
B) growth reduces the cost of "common property" resources to society.
C) growth makes the gap between unlimited wants and scarce resources less acute.
D) a growth-oriented society has a relatively equitable income distribution.
12) Concern about the general level of prices in an economy is primarily a concern about the economic goal of:
A) economic efficiency.
B) economic security.
C) price-level stability.
D) equity.
13) Assume that a tradeoff exists in the short run between inflation and unemployment. This relationship means that:
A) a low rate of unemployment causes a low rate of inflation.
B) the unemployment rate always equals the inflation rate.
C) less unemployment can be achieved with more inflation.
D) less unemployment can be achieved with less inflation.
14) The study of economics is primarily concerned with:
A) keeping private businesses from losing money.
B) demonstrating that capitalistic economies are superior to socialistic economies.
C) choices which are made in seeking to use scarce resources efficiently.
D) determining the most equitable distribution of society's output.
15) The assertion that "There is no free lunch" means:
A) there are always tradeoffs between economic goals.
B) all production involves the use of scarce resources and thus the sacrifice of alternative goods.
C) marginal analysis is not used in economic reasoning.
D) choices do not need be made if behaviour is rational.
16) The study of economics exists because:
A) government interferes with the efficient allocation of scarce resources.
B) resources are scarce in relation to human material wants.