Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank

 
C. what, how, and for whom to produce
 
D. the ways that individuals can pursue their own self-interest
 
E. how to plan to overcome scarcity
 
62.The two basic markets shown by the simple circular flow diagram are: 
 


A. capital goods and consumer goods
 
B. free and controlled
 
C. product and resource
 
D. household and business
 
E. government and private
 
63.In the product market: 
 


A. businesses sell economic resources to households
 
B. businesses sell consumer products to households
 
C. businesses buy consumer products from households
 
D. businesses buy economic resources from households
 
E. business and households both sell consumer products to each other
 
64.The economy of India most closely approximates a: 
 


A. traditional mixed economy
 
B. market economy
 
C. command economy
 
D. modern mixed economy
 
E. traditional economy
 
65.Between the early 1990s and late 2000s, India's and China's economies steadily grew by annual average of: 
 


A. 4 percent and 6 percent respectively
 
B. 6 percent and 8 percent respectively
 
C. 8 percent and 10 percent respectively
 
D. 10 percent and 12 percent respectively
 
E. 12 percent and 14 percent respectively
 
66.Modern mixed economy refers to an economy: 
 


A. with both product and resource markets
 
B. that engages in both domestic and international trade
 
C. with both private and public sectors
 
D. that functions primarily on the basis of custom and tradition
 
E. that operates on the basis of central planning
 
67.The Canadian economy most closely approximates a: 
 


A. traditional mixed economy
 
B. market economy
 
C. command economy
 
D. modern mixed economy
 
E. traditional economy
 
68.The unemployment rate includes: 
 


A. pensioners
 
B. homemakers
 
C. brewery workers who have been laid off recently
 
D. students working part-time at a grocery store
 
E. young children
 
69.The Kyoto Protocol: 
 


A. aimed to increase emissions of so-called greenhouse gases, in particular carbon dioxide
 
B. was signed by over 170 countries, including Canada
 
C. ensured that all countries in the world cut greenhouse gases until 2012
 
D. requirements were met by Canada, but by few other countries
 
E. imposed a global carbon tax
 
70.The achievement of full employment frequently conflicts with the economic goal of: 
 


A. economic efficiency
 
B. economic growth
 
C. income equity
 
D. a viable balance of payments
 
E. price stability
 
71.According to Adam Smith, the most significant single cause of economic progress has been: 
 


A. the increase in the fertility of land used in agriculture
 
B. the use of more specialized forms of machinery in manufacturing
 
C. a more educated workforce
 
D. the division of labour
 
E. the rise of large companies that dominate particular industries
 
72.Laissez-faire suggests that: 
 


A. land and other natural resources should be privately owned but capital should be owned by the government
 
B. land and other natural resources should be owned by the government but capital should be privately owned
 
C. government should not interfere with the operation of the economy
 
D. government action is necessary if the economy is to achieve full employment
 
E. government policies are needed to deal with environmental damage
 




Chapter 1 Key
 
1.The economic problem is essentially one of deciding how to make the best use of: 
 


A. unlimited resources to satisfy unlimited wants