Question 1

The two economic groups competing for power during the transition from mercantilism to capitalism were:

Accepted Answer

A)  craft guilds and industrialists.
B)  serfs and craft guilds.
C)  craft guilds and the lords of the manor.
D)  merchants and the lords of the manor.

Question 2

McDonald's Corporation lost a battle to keep a Singapore firm, Future Enterprises, from selling goods under the labels MacNoodles, MacTea, and MacChocolate. In this case, the court system in Singapore was defining:

Accepted Answer

A)  globalization.
B)  limited liability.
C)  consumer sovereignty.
D)  property rights.

Question 3

The most important difference between domestic governments and international organizations is that:

Accepted Answer

A)  international organizations are more effective since membership is voluntary.
B)  domestic governments are more effective since national self-interest is not constrained by international obligations.
C)  international organizations are less effective since they have no means of forcing members to comply.
D)  domestic governments are less effective because they are more concerned about international public opinion.

Question 4

Global corporations:

Accepted Answer

A)  can provide many benefits to the countries in which they operate.
B)  are falling in importance in today's economy.
C)  have little interest in decreasing international tensions.
D)  suffer tax disadvantages that domestic corporations do not.

Question 5

Briefly explain the difference between socialism and capitalism.

Accepted Answer

In theory,socialism is an economic syste...

Question 6

Profit is:

Accepted Answer

A)  the same as cost.
B)  the same as revenue.
C)  what is left over from total revenue after all of the appropriate costs have been subtracted.
D)  what is left over from total cost after all of the appropriate revenues have been subtracted.

Question 7

Socialists saw state socialism as:

Accepted Answer

A)  the final stage of socialism.
B)  a preliminary state leading to capitalism.
C)  a transition stage to pure socialism.
D)  a state following pure socialism.

Question 8

The market where businesses sell goods and services to households and the government is called the:

Accepted Answer

A)  goods market.
B)  factor market.
C)  capital market.
D)  money market.

Question 9

Entrepreneurship is defined as the ability to:

Accepted Answer

A)  organize and get something done.
B)  raise investment capital.
C)  earn above-average profits.
D)  minimize production costs.

Question 10

In the United States, the government regulates business in its role as a "referee." Which of the following is not among the laws regulating the interaction between households and businesses?

Accepted Answer

A)  Businesses must follow certain rules about workplace safety, minimum wages, and overtime rules.
B)  Businesses cannot meet with other businesses to agree on prices they will charge.
C)  In some businesses, in some states, employees must join a union in order to work at certain jobs.
D)  Businesses are required to produce certain goods, called public goods, for the government.

Question 11

Households supply factors of production to businesses and are paid by businesses for doing so. The market where this interaction takes place is called the factor market.

Accepted Answer

A) True 
 B)False

Question 12

New developments in computer monitors have made flat panel LCDs cheaper and better than the older CRT models. Given that monitors can contain as much as 8 pounds of lead, disposing of the old monitors creates a:

Accepted Answer

A)  negative externality.
B)  positive externality.
C)  neutral externality.
D)  limited liability.

Question 13

In 11th century Europe, the central economic decisions were made by:

Accepted Answer

A)  the nation-state.
B)  tradition and the lord of the manor.
C)  the church.
D)  central governments.

Question 14

Which of the following would most likely generate a positive externality?

Accepted Answer

A)  Roller coaster rides
B)  Pollution
C)  Alcoholic beverages
D)  Education

Question 15

The three primary forms of business are sole proprietorships,partnerships,and corporations.You are contemplating starting a business.For each of the following proposals,explain which of the three types of businesses would be most appropriate.In each case describe the advantages and disadvantages of your choice.
(a)You love drones and want to start a business creating drone pictures of people's houses and property.
(b)After a late night cram session,you and your roommate are in need of some pizza,but no restaurants are open.You decide to open an all night pizza parlor.
(c)You have an idea that will make you a billionaire before you graduate from college: a pizza delivery service - from any restaurant to any dorm.In order to make your revenue goal a reality,a local venture capital firm has informed you that you will need to nationally franchise your operation.

Accepted Answer

(a)Initially it makes sense to start as ...

Question 16

A business is likely a sole proprietorship if:

Accepted Answer

A)  it has two or more owners, with each owner liable for every other owner's actions.
B)  it has only one owner who has unlimited liability.
C)  it is legally treated as a person and owned by stockholders who are liable for the actions of the corporate "person."
D)  multiple owners are liable only to the extent of their own investment.

Question 17

Feudalism and mercantilism relied on markets to solve the three main coordination problems.

Accepted Answer

A) True 
 B)False

Question 18

What are the six major roles that the government plays in the economy? Give an example of each.

Accepted Answer

The six major roles the government plays...

Question 19

Briefly explain how the U.S.economic system has evolved from the early 1900s to today.

Accepted Answer

Evolving social customs,political forces...

Question 20

Government regulation of working conditions is an example of government as:

Accepted Answer

A)  a referee.
B)  an owner.
C)  an actor.
D)  a dictator.

Exam 3: Economic Institutions

The market where businesses sell goods and services to households and the government is called the:

Correct Answer
verified

Socialists saw state socialism as:

Correct Answer
verified

New developments in computer monitors have made flat panel LCDs cheaper and better than the older CRT models. Given that monitors can contain as much as 8 pounds of lead, disposing of the old monitors creates a:

Correct Answer
verified

Briefly explain the difference between socialism and capitalism.

Correct Answer
verified
In theory,socialism is an economic syste...
View Answer

Which of the following would most likely generate a positive externality?

Correct Answer
verified

In 11th century Europe, the central economic decisions were made by:

Correct Answer
verified

Correct Answer
verified
(a)Initially it makes sense to start as ...
View Answer

A business is likely a sole proprietorship if:

Correct Answer
verified

Global corporations:

Correct Answer
verified

What are the six major roles that the government plays in the economy? Give an example of each.

Correct Answer
verified
The six major roles the government plays...
View Answer

McDonald's Corporation lost a battle to keep a Singapore firm, Future Enterprises, from selling goods under the labels MacNoodles, MacTea, and MacChocolate. In this case, the court system in Singapore was defining:

Correct Answer
verified

Profit is:

Correct Answer
verified

Feudalism and mercantilism relied on markets to solve the three main coordination problems.

Correct Answer
verified

The two economic groups competing for power during the transition from mercantilism to capitalism were:

Correct Answer
verified

In the United States, the government regulates business in its role as a "referee." Which of the following is not among the laws regulating the interaction between households and businesses?

Correct Answer
verified

The most important difference between domestic governments and international organizations is that:

Correct Answer
verified

Entrepreneurship is defined as the ability to:

Correct Answer
verified

Households supply factors of production to businesses and are paid by businesses for doing so. The market where this interaction takes place is called the factor market.

Correct Answer
verified

Briefly explain how the U.S.economic system has evolved from the early 1900s to today.

Correct Answer
verified
Evolving social customs,political forces...
View Answer

Government regulation of working conditions is an example of government as:

Correct Answer
verified

Exam 3: Economic Institutions

The market where businesses sell goods and services to households and the government is called the:

Correct AnswerverifiedShow Answer

Socialists saw state socialism as:

Correct AnswerverifiedShow Answer

New developments in computer monitors have made flat panel LCDs cheaper and better than the older CRT models. Given that monitors can contain as much as 8 pounds of lead, disposing of the old monitors creates a:

Correct AnswerverifiedShow Answer

Briefly explain the difference between socialism and capitalism.

Correct AnswerverifiedIn theory,socialism is an economic syste...View AnswerShow Answer

Which of the following would most likely generate a positive externality?

Correct AnswerverifiedShow Answer

In 11th century Europe, the central economic decisions were made by:

Correct AnswerverifiedShow Answer

Correct Answerverified(a)Initially it makes sense to start as ...View AnswerShow Answer

A business is likely a sole proprietorship if:

Correct AnswerverifiedShow Answer

Global corporations:

Correct AnswerverifiedShow Answer

What are the six major roles that the government plays in the economy? Give an example of each.

Correct AnswerverifiedThe six major roles the government plays...View AnswerShow Answer

McDonald's Corporation lost a battle to keep a Singapore firm, Future Enterprises, from selling goods under the labels MacNoodles, MacTea, and MacChocolate. In this case, the court system in Singapore was defining:

Correct AnswerverifiedShow Answer

Profit is:

Correct AnswerverifiedShow Answer

Feudalism and mercantilism relied on markets to solve the three main coordination problems.

Correct AnswerverifiedShow Answer

The two economic groups competing for power during the transition from mercantilism to capitalism were:

Correct AnswerverifiedShow Answer

In the United States, the government regulates business in its role as a "referee." Which of the following is not among the laws regulating the interaction between households and businesses?

Correct AnswerverifiedShow Answer

The most important difference between domestic governments and international organizations is that:

Correct AnswerverifiedShow Answer

Entrepreneurship is defined as the ability to:

Correct AnswerverifiedShow Answer

Households supply factors of production to businesses and are paid by businesses for doing so. The market where this interaction takes place is called the factor market.

Correct AnswerverifiedShow Answer

Briefly explain how the U.S.economic system has evolved from the early 1900s to today.

Correct AnswerverifiedEvolving social customs,political forces...View AnswerShow Answer

Government regulation of working conditions is an example of government as:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In theory,socialism is an economic syste...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(a)Initially it makes sense to start as ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The six major roles the government plays...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Evolving social customs,political forces...
View Answer

Correct Answer
verified