Multiple Choice
Identify the letter of the choice that best completes the statement or
answers the question.
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1.
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A
market economy a. | does not provide
for everyone's basic needs. | b. | limits the choices of goods and services
available. | c. | permits extensive government
intervention. | d. | offers a high degree of certainty for its
workers. | | |
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2.
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China
is reforming its economy. Which of the following is NOT part of its economic reform
efforts? a. | collectivization | c. | privatization | b. | entrepreneurship | d. | foreign investment | | | | |
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3.
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"Business decisions should be made wisely so that scarce resources are used to
the greatest benefit." This statement is an example of which economic goal? a. | economic
freedom | c. | economic
efficiency | b. | economic security | d. | price stability | | | | |
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4.
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All
of the following are characteristic of a command economy EXCEPT a. | it can change
directions drastically in a brief period of time. | b. | there is much
uncertainty. | c. | it is not designed to meet the wants of
consumers. | d. | is provides workers with few incentives to work
hard. | | |
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5.
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Socialism is
characterized by a. | limited benefits for
non-productive members of society. | b. | government ownership of most productive
resources. | c. | a marketplace governed by supply and demand. | d. | low
taxes. | | |
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6.
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In a
price system, who gets the goods and services? a. | Those willing and able to buy
them. | c. | Those with the
most money. | b. | Those who deserve them. | d. | Those most efficient when working. | | | | |
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7.
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Which
of the following economic goals can be achieved through a free market? a. | economic
security | c. | economic
freedom | b. | economic equity | d. | price stability | | | | |
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8.
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Sweden, like other countries in Europe, experienced slow economic growth for what
reason? a. | high employee
benefits | c. | low government
interference | b. | high taxes | d. | low taxes | | | | |
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9.
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Which
group of people ultimately determines the products that a free enterprise economy
produces? a. | Congress | c. | local
government | b. | property owners | d. | consumers | | | | |
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10.
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When
the government seeks to protect Americans from adverse economic events such as layoffs and illnesses,
it is trying to achieve what economic goal? a. | full employment | c. | economic growth | b. | economic
security | d. | economic
equity | | | | |
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