Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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Part 1: Main Idea
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1.
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The way a society uses scarce resources to satisfy its people's unlimited
wants is called an economic
a. | system | b. | utility | c. | incentive | d. | grid |
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2.
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The government owns some, but not all, factors of production in a(n)
a. | authoritarian system | b. | communist system | c. | pure market
system | d. | socialist system |
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3.
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With voluntary exchange, a buyer and seller agree to do business together
a. | only for the benefit of the seller | b. | only for the benefit of the
buyer | c. | for the mutual benefit of both | d. | for the benefit of
neither |
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4.
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In a market economy, the real power in the market place is held by the
a. | producer | b. | seller | c. | government | d. | consumer |
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5.
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A circular flow model shows how
a. | all interactions occur in a market economy | b. | some interactions
occur in a market economy | c. | all interactions occur in a traditional
economy | d. | some interactions occur in a traditional economy |
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6.
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An advantage of a pure market economy is that it
a. | has mechanisms for providing public goods | b. | allows local
communities to set their own economic development | c. | provides security to those who are not
economically productive | d. | prevents unequal distribution of
wealth |
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7.
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Suppliers in a product market are
a. | individuals | b. | governments | c. | businesses | d. | households |
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8.
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The nation where government plays the most limited role in the economy is
a. | North Korea | b. | Sweden | c. | France | d. | the United
States |
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9.
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Global financial transactions have been made quick, inexpensive, and easy
by
a. | computer linkages | b. | telegraph linkages | c. | shipping
linkages | d. | radio linkages |
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10.
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The situation where women tend crops and raise children while men hunt is often
found in a
a. | mixed economy | b. | market economy | c. | command
economy | d. | traditional economy |
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11.
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Government officials deciding the distribution of all resources is a feature of
a
a. | mixed economy | b. | market economy | c. | command
economy | d. | traditional economy |
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12.
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In economic terms, laissez faire means that the government
a. | supports socialism and capitalism | b. | does not support capitalism | c. | stays out of the
market place | d. | gets involved in the market place |
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13.
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In today's world, there are
a. | no pure market economies | b. | only two pure market
economies | c. | several pure market economies | d. | many pure market
economies |
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14.
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Freedom of economic choice is one of the chief advantages of a
a. | market economy | b. | command economy | c. | communist
economy | d. | traditional economy |
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15.
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Elements of traditional, command, and market economies are combined in a
a. | centrally-planned economy | b. | socialist economy | c. | mixed
economy | d. | pure market economy |
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16.
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Moving steel mills from private ownership to public ownership is an example
of
a. | globalization | b. | socialization | c. | nationalization | d. | privatization |
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17.
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Bureaucrats deciding what products should be sold in stores is a feature of
a
a. | traditional economy | b. | command economy | c. | market
economy | d. | capitalist economy |
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18.
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A grocery store shows the influence of competition when
a. | no brands of peanut butter are on the store shelf | b. | one brand of peanut
butter is on the store shelf | c. | two brands of peanut butter with the same price
are on the store shelf | d. | two brands of peanut butter with different
prices are on the store shelf |
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19.
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An individual hiring a waitress is participating in the
a. | circular flow market | b. | factor market | c. | product
market | d. | consumer market |
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20.
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A society that has public schools and ownership of private property has elements
of both
a. | traditional and socialist economic system. | b. | traditional and
market economic systems | c. | command and traditional economic
systems | d. | command and market economic systems |
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21.
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Moving railroads from government ownership to ownership by stockholders is an
example of
a. | globalization | b. | socialization | c. | nationalization | d. | privatization |
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22.
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The influence of the global economy is shown when a shortage of
a. | Florida oranges causes orange prices to rise in the United States | b. | Florida oranges has
no effect on orange prices in the United States | c. | coffee in Kenya causes coffee prices to rise in
the United States | d. | coffee in Kenya has no affect on coffee prices
in the United States |
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23.
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In the United States, harvest-time customs represent the influence of a
a. | market economy | b. | command economy | c. | socialist
economy | d. | traditional economy |
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24.
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A mixed economy of Sweden has
a. | "cradle to grave" social benefits and private ownership of
property | b. | no social benefits and private property | c. | "cradle to
grave" social benefits and total government ownership of property | d. | no social benefits
and free economic choice |
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25.
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Karl Marx predicted that in time
a. | workers would overthrow the industrial system | b. | workers would be
totally dominated by the industrial system | c. | factory owners would revise the industrial
system | d. | factory owners would abandon the industrial system |
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