Question 1

Property rights do not encourage people to cooperate.

Accepted Answer

A) True 
 B)False

Question 2

Which is a major feature of the market system?

Accepted Answer

A)   price floors and price ceilings in all markets
B)   reallocation of all resources from private to public uses
C)   the right to own private property and control resource use
D)   central planning by government to provide goods and servicesE) B) and C)
F) C) and D)

Question 3

In a capitalistic economy:

Accepted Answer

A)   consumers can never be sovereign.
B)   markets can never be competitive.
C)   there is a reliance on the market system.
D)   the government owns the means of production.E) B) and C)
F) A) and B)

Question 4

Which would not be characteristic of a capitalist economy?

Accepted Answer

A)   government ownership of the means of production
B)   competition and unrestricted markets
C)   reliance on the market system
D)   free enterprise and choiceE) A) and B)
F) A) and C)

Question 5

The two basic markets shown by the simple circular flow model are:

Accepted Answer

A)   capital goods and consumer goods.
B)   free and controlled.
C)   product and factor.
D)   household and business.E) None of the above
F) A) and C)

Question 6

Households and businesses are:

Accepted Answer

A)   both buyers in the factor market.
B)   both suppliers in the product market.
C)   suppliers in the factor and product markets respectively.
D)   suppliers in the product and factor markets respectively.E) A) and B)
F) None of the above

Question 7

In a market economy the distribution of income would be determined primarily by

Accepted Answer

A)   consumer needs and preferences.
B)   the quantities and prices of the resources which households supply.
C)   government regulations which provide a minimum income for all.
D)   a social consensus as to what distribution of income is most equitable.E) A) and C)
F) B) and C)

Question 8

Which of the following is not a part of a market system?

Accepted Answer

A)   private property
B)   freedom of enterprise and choice
C)   competition in product and resource markets
D)   government determination of basic economic goalsE) C) and D)
F) B) and C)

Question 9

Which is not one of the Five Fundamental Questions?

Accepted Answer

A)   How will the goods and services be produced?
B)   How will the system accommodate change?
C)   Who will get the goods and services?
D)   What goods and services should be produced by government?E) A) and C)
F) A) and B)

Question 10

Which is assumed to be most limited in scope under a market system?

Accepted Answer

A)   freedom of enterprise
B)   freedom of choice
C)   competition
D)   governmentE) C) and D)
F) A) and C)

Question 11

-On the basis of the information provided it can be said that:

Accepted Answer

A)   no coincidence of wants exists between any two provinces.
B)   a coincidence of wants exists between British Columbia and Ontario.
C)   a coincidence of wants exists between Ontario and Alberta.
D)   a coincidence of wants exists between British Columbia and Alberta.E) B) and C)
F) A) and D)

Question 12

The market system communicates changes in supply and demand and elicits appropriate responses from businesses and resource suppliers. This is known as the:

Accepted Answer

A)   rationing function of prices.
B)   guiding function of prices.
C)   monetary function of prices.
D)   circular flow of income.E) None of the above
F) C) and D)

Exam 2: The Market System and the Circular Flow

-On the basis of the information provided it can be said that:

Correct Answer
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Which of the following is not a part of a market system?

Correct Answer
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Which would not be characteristic of a capitalist economy?

Correct Answer
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Which is assumed to be most limited in scope under a market system?

Correct Answer
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Which is a major feature of the market system?

Correct Answer
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In a market economy the distribution of income would be determined primarily by

Correct Answer
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Households and businesses are:

Correct Answer
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The two basic markets shown by the simple circular flow model are:

Correct Answer
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Which is not one of the Five Fundamental Questions?

Correct Answer
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The market system communicates changes in supply and demand and elicits appropriate responses from businesses and resource suppliers. This is known as the:

Correct Answer
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In a capitalistic economy:

Correct Answer
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Property rights do not encourage people to cooperate.

Correct Answer
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Exam 2: The Market System and the Circular Flow

-On the basis of the information provided it can be said that:

Correct AnswerverifiedShow Answer

Which of the following is not a part of a market system?

Correct AnswerverifiedShow Answer

Which would not be characteristic of a capitalist economy?

Correct AnswerverifiedShow Answer

Which is assumed to be most limited in scope under a market system?

Correct AnswerverifiedShow Answer

Which is a major feature of the market system?

Correct AnswerverifiedShow Answer

In a market economy the distribution of income would be determined primarily by

Correct AnswerverifiedShow Answer

Households and businesses are:

Correct AnswerverifiedShow Answer

The two basic markets shown by the simple circular flow model are:

Correct AnswerverifiedShow Answer

Which is not one of the Five Fundamental Questions?

Correct AnswerverifiedShow Answer

The market system communicates changes in supply and demand and elicits appropriate responses from businesses and resource suppliers. This is known as the:

Correct AnswerverifiedShow Answer

In a capitalistic economy:

Correct AnswerverifiedShow Answer

Property rights do not encourage people to cooperate.

Correct AnswerverifiedShow Answer

Correct Answer
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