Deck 16: The Organization of Economic Activities

Question 1

All economic goods take the form of either wealth or:

A) savings.
B) services.
C) possessions.
D) property.

Answer 1

B

Question 2

Louis Blanc was one of the originators of:

A) capitalism.
B) unplanned economics.
C) socialism.
D) mixed economics.

Answer 2

C

Question 3

Which institution controls a planned economic system?

A) the citizenry
B) the religious institution of that nation
C) the private sector
D) the government

Answer 3

D

Question 4

Karl Marx and Friedrich Engels argued for a new form of economic organization called:

A) capitalism.
B) communism.
C) free-market economics.
D) private property economics.

Question 5

Wealth is what we call:

A) material economic goods.
B) the material and nonmaterial items of our culture.
C) the services we desire.
D) the economic goods we cannot see or feel.

Question 6

Adam Smith argued that people's needs were met by the market because people were:

A) generous.
B) selfish.
C) concerned about the welfare of others.
D) caring.

Question 7

Soviet-style socialism was abandoned because:

A) soviet-style economies delivered too many goods.
B) new technologies gave the soviet-style economies an advantage.
C) a strong national consensus was maintained by the economy.
D) socialist economies were significantly lagging behind capitalist economies.

Question 8

A planned economy is characterized by:

A) a market economy.
B) a free enterprise economy.
C) government controlled production and distribution.
D) the absence of socialism.

Question 9

Communism refers to a state in which:

A) the means of production are held by cooperative groups of citizens.
B) all citizens are economically and socially equal.
C) the Communist Party determines society's goals.
D) the Communist Party runs the government but not the economy.

Question 10

What institution controls an unplanned economic system?

A) the citizenry
B) the religious institution of that nation
C) the private sector
D) markets

Question 11

Adam Smith's concept of the invisible hand refers to:

A) government controls.
B) import and export costs.
C) the rise and fall of prices that guide individual actions in a market.
D) the combined impact of foreign trade and aid on a national economy.

Question 12

Research has found that after society has reached an annual income threshold of about ________________capita, additional income does not seem to make a society happier.

A) $5,000
B) $15,000
C) $25,000
D) $45,000

Question 13

Allowing the market to operate with a minimum of government regulation is called:

A) laissez-faire.
B) socialism.
C) controlled choice.
D) quota planning.

Question 14

Which of the following is an example of a country with a planned economy?

A) China
B) the Russian Federation
C) Britain
D) the United States

Question 15

An economy may be defined as:

A) the social organization by means of which people of a given society produce and distribute economic goods.
B) production of material goods.
C) the ratio of supply and demand in a society as measured by domestic input and cost.
D) labor, resources and capital multiplied by political considerations in any society.

Question 16

Desires for things that can be obtained by labor or through exchange are called:

A) economic goods.
B) economic artifacts.
C) economic loses.
D) economic wants.

Question 17

In a market economy, the chief incentive is:

A) the need to fill government quotas.
B) the possibility of making profits.
C) the freedom a lack of competition provides.
D) the pride derived by helping a state-managed enterprise.

Question 18

Charles Fourier and Robert Owen were:

A) laissez-faire economists.
B) Soviet economists.
C) free-market proponents.
D) utopian socialists.

Question 19

Economic goods are the objects of our economic wants and are the things that:

A) are constant in supply.
B) money can buy.
C) are never scarce.
D) are always impossible to place a price on.

Question 20

Which of the following is NOT a determination that an economy must perform?

A) The kinds of goods to be produced.
B) The amount of each good to be produced.
C) The resources that are to be allocated to its output.
D) The storage of the goods for those who are to enjoy them.

Question 21

Karl Marx had much to say about how a communist economy would operate.

Question 22

Economic goods are the things that money can buy and that are the objects of our economic wants.

Question 23

Elements of socialist thought have influenced the evolution of capitalist societies.

Question 24

An economy in which the government plays no part at all is called:

A) a pure free enterprise economy.
B) an absolute state economy.
C) a mixed economy.
D) a managed economy.

Question 25

The great economic problem facing every modern society is the competition from other nations' economies.

Question 26

All productive resources - labor, natural resources, and capital - are limited.

Question 27

In modern industrial societies, economic relationships are quite simple.

Question 28

Equilibrium price is the price:

A) on which buyers and sellers cannot agree.
B) at which demand exactly equals supply.
C) which everyone thinks is too high.
D) which the state determines for the good of all.

Question 29

Adam Smith argued that economic freedom would lead to chaos.

Question 30

Communism is another name for socialism.

Question 31

Economic goods have monetary value because they are desirable and scarce.

Question 32

Economic goods are only material and tangible.

Question 33

As people moved into the city, the economic situation evolved into the mercantilist system, in which farming was favored over manufacturing or processing.

Question 34

Determining the resources that are to be allocated to a good's output is one of the functions of an economy.

Question 35

Laissez-faire means allowing the market to operate with a maximum of government regulation.

Question 36

Economics is the study of the social organization through which people satisfy their wants.

Question 37

Louis Blanc argued that an individual had an inherent right to a decent job.

Question 38

All modern economies, whatever their history, have evolved into:

A) macroeconomic structures.
B) microeconomic structures.
C) pragmatic market economies.
D) transcendental market economies.

Question 39

Major technological breakthroughs in the development of computers increased supply and quality. In response, prices of computers:

A) varied too widely for a price pattern to emerge.
B) increased until computers were too expensive to buy.
C) fell.
D) rose slightly.

Question 40

The "rule of law" in the U.S. limits the government's ability to change:

A) property rights.
B) tax rates.
C) economic structures.
D) the supply and demand curve.

Question 41

What is a planned economy? What is an unplanned economy? How and why are planned and unplanned economies different? How do planned and unplanned economies work?

Question 42

Government production quotas are an important part of the U.S. planned economy.

Question 43

In China, the communist government made the provision of health care a top priority.

Question 44

What is the great economic problem that faces every modern society? What are the factors of production? How have societies attempted to solve the great economic problem?

Question 45

Planned economies are problem free.

Question 46

There is no such thing as a pure or absolute free enterprise economy.

Question 47

The fact that Socialist economies were significantly lagging behind capitalist economies is one of the reasons Soviet-style socialism was abandoned.

Question 48

Unplanned economies rely on markets to control economic decisions.

Question 49

What were the reasons Soviet-style socialism was abandoned?

Question 50

As a response to dissatisfaction with the country's planned economy, the Chinese government introduced major modifications in its economic system, allowing the development of private markets while maintaining overall political control.

Question 51

What are the major transitions in the history of Western economic systems? What have all modern economic systems evolved into today?

Question 52

In the pre-1990 Soviet economy, no workers were allowed to choose their jobs.

Question 53

How does a market economy work? What is the role of government in market economies? Why are the principles of supply and demand important?

Question 54

The demand curve, DD, shows the amount of a good buyers would be willing to purchase at different prices in the market on a certain day.

Question 55

The supply curve, SS, shows the amount of a goods buyers are willing to purchase on a certain day.