Question 1

The market value of the goods and services produced in an economy minus income from foreign investments is the:

Accepted Answer

The definition given in the question corresponds to the calculation of gross domestic product (GDP), which measures the total value of goods and services produced within a country's national borders in a given period of time (usually a year). GDP is calculated by subtracting foreign income from the total market value of goods and services produced (also known as the "gross domestic product at market prices"). Therefore, the correct answer is B) gross domestic product (GDP).

Question 2

The provision of an interstate highway system is considered to be a:

Accepted Answer

The provision of an interstate highway system is considered to be a public good. It is a good that is non-excludable (once the system is built, it is difficult to exclude anyone from using it) and non-rivalrous (one person's use of the highway system does not prevent others from using it). It benefits society as a whole, not just individuals, and therefore is typically provided by the government rather than by private industry.

Question 3

Poorhouses and vagrancy laws are examples of government efforts to:

Accepted Answer

Poorhouses were created to house the unemployed and destitute individuals who could not find work during the Industrial Revolution. Vagrancy laws were enacted to criminalize unemployment, forcing unemployed individuals to work in labor camps. Both of these government efforts were aimed at creating a labor force to support the growing industries of the time.

Question 4

Which of the following is NOT something the federal government does to promote economic prosperity?

Accepted Answer

Prohibiting skilled immigrants from coming to the United States and taking American jobs would actually hinder economic prosperity, as immigrants bring new skills and ideas to the workforce. Therefore, this is NOT something the federal government does to promote economic prosperity. The other choices all involve actions the federal government takes to promote economic prosperity, such as preventing high inflation, offering grants and loans to businesses and states, and promoting technical innovation.

Question 5

Why did Congress begin to adopt national business regulations?

Accepted Answer

Congress began to adopt national business regulations to alleviate the burdens that companies faced of adapting to the regulatory inconsistencies across states. This would create a more uniform regulatory environment and make it easier and less expensive for businesses to comply with regulations.

Question 6

Why does the United States adjust the welfare system to allow certain benefits to persist for only certain periods of time?

Accepted Answer

Limiting the duration of welfare benefits creates an incentive for people to seek employment and increase their income, rather than relying solely on government assistance. This helps to reduce poverty and promote self-sufficiency. Additionally, administering welfare benefits over shorter time periods can help to manage and allocate limited resources more effectively.

Question 7

What is the first feature inherent in the very idea of government?

Accepted Answer

The first feature inherent in the very idea of government is the establishment of law and order. The government is responsible for creating and enforcing laws designed to protect citizens and maintain social order. Without this feature, societies would descend into chaos and anarchy.

Question 8

Universal compulsory education is an example of government efforts to:

Accepted Answer

Universal compulsory education is primarily aimed at creating a skilled and educated labor force. It ensures that all individuals have access to education, and can develop the necessary skills and knowledge required to participate in the labor market. While education may also have positive externalities and be considered a public good, the primary purpose is to create a strong labor force. Enforcing contracts and setting market standards are not directly related to universal compulsory education.

Question 9

Laws that structure the conditions under which you can sell your property are called:

Accepted Answer

Laws that structure the conditions under which you can sell your property are called laws of exchange. These laws define the legal requirements and procedures for transferring ownership of a property from one party to another, ensuring that the transaction is fair and transparent. They also outline the rights and responsibilities of both buyers and sellers, as well as the types of property that can be sold and the conditions under which they can be sold.

Question 10

A voluntary agreement between two or more private persons that governs future conduct is called:

Accepted Answer

A voluntary agreement between two or more private persons that governs future conduct is called a contract. A policy is a course of action or principle adopted by an organization or individual. A market is a place where buyers and sellers come together to exchange goods or services. An exchange is a marketplace where securities, commodities, or derivatives are traded. Binding arbitration is a process of resolving disputes outside the courts where the decision is final and binding.

Question 11

Which term describes a good that may be enjoyed by anyone once it is provided and may not be denied to anyone once it is provided?

Accepted Answer

A public good is a good that is non-excludable and non-rivalrous in consumption. This means that once the good is provided, it can be enjoyed by anyone and nobody can be denied access to it. Examples of public goods include street lighting, national defense, and public parks.

Question 12

Which of the following is NOT an example of a public good?

Accepted Answer

Gross domestic product (GDP) is not a public good. It is a measure of a country's economic output and is not non-excludable, meaning it can be withheld from people who do not pay for it. The other options are examples of public goods, as they are non-excludable and non-rivalrous in consumption.

Question 13

A contract is meaningless unless it is:

Accepted Answer

A contract may be notarized or signed by both parties, but it is ultimately meaningless unless it is enforceable. The enforceability of a contract means that it is legally binding and can be upheld in court if necessary. A written agreement and regulation may be factors that contribute to the enforceability, but they are not the sole determinants.

Question 14

The most fundamental way that government affects investment is by:

Accepted Answer

Government can promote business, investor, and consumer confidence through policies, regulations, and public statements. When there is confidence in the economy, investors are more likely to make long-term investments, which ultimately leads to increased economic growth. This can also lead to job creation and increased consumer spending.

Question 15

Common terminology,uniform weights and measures,and consistent specifications for both quantities and qualities of goods are called:

Accepted Answer

Common terminology, uniform weights and measures, and consistent specifications for both quantities and qualities of goods are all part of market standards. Market standards help ensure fair trade practices and consistent product quality and quantity across different vendors and markets.

Question 16

The market value of the goods and services produced in an economy is the:

Accepted Answer

The answer of The market value of the goods and...

Question 17

Which term describes a company that provides all the goods and services for a particular market such that competition is nonexistent?

Accepted Answer

A company that provides all the goods and services for a particular market and eliminates all competition is known as a monopoly. Therefore, option D is the correct answer. Option A (simplex) is not a commonly used term in business or economics. Option B (unigarchy) and C (autogarchy) are not recognized terms at all. Option E (bully firm) is a slang term and not a formal term used in economics.

Question 18

What is one of the most important ways that government can protect welfare and property?

Accepted Answer

Maintaining law and order is crucial for protecting both welfare and property. Without a functioning legal system and state enforcement of laws, property rights become meaningless and individual safety is threatened. Governments play a significant role in providing security and preventing crime, allowing citizens to enjoy their rights and the benefits of ownership and prosperity.

Question 19

Why are market standards so important to a functioning market economy?

Accepted Answer

Market standards are crucial because they ensure that all parties involved in a transaction have a clear understanding of what is being exchanged, which is essential for fair and efficient bargaining.

Question 20

Trespass laws are an example of a type of law that gives concrete meaning to what constitutes:

Accepted Answer

Trespass laws define and protect property rights. They specify who has the legal right to use and access particular pieces of land or buildings, and they criminalize unauthorized entry onto those properties by others. Therefore, trespass laws provide a concrete meaning of what constitutes property. Sovereignty, responsibility, accountability, and civic duty may have some relevance to trespass laws, but they are not the central issue.

Quiz 13: Introduction to Public Policy