MC Qu. 020 In a market economy:
In a market economy:
the government owns the means of production so that it can produce what is in society's best interest.
businesses design their plans to maximize their profit and the market is relied upon to see that individual self-interest is consistent with society's interest.
workers are directed by government planning boards to produce what is in society's best interest.
government sets prices to make necessities affordable because it is in society's best interest to make necessities affordable.
MC Qu. 022 Suppose that at the current price consumers would ...
Suppose that at the current price consumers would like to purchase 10 million large-screen televisions and 15 million are available. When the market coordinates the demand and supply for large-screen televisions, the price of large-screen televisions will:
rise.
fall.
stay the same.
be fixed by the government.
MC Qu. 036 Most economies today are:
Most economies today are:
pure market economies.
differentiated primarily by the degree to which they depend on markets.
differentiated primarily by who owns the means of production.
socialist.
MC Qu. 047 Households are on the:
Households are on the:
the supply side of factor markets and the demand side of goods markets.
the demand side of factor markets and the supply side of goods markets.
the supply side of both factor markets and goods markets.
the demand side of both factor markets and goods markets.
MC Qu. 050 Governments do all of the following except:
Governments do all of the following except:
oversee the interaction of households and businesses in the goods and factor markets.
demand labor services from households in the factor market.
demand for goods and services from businesses in the goods market.
supply labor services to businesses in the factor market.
MC Qu. 054 Businesses fail because:
Businesses fail because:
they follow the principle of consumer sovereignty too closely.
the invisible hand determines that they are not producing something socially valuable.
they earn excessive profits.
entrepreneurship is present.
MC Qu. 066 A business is most likely to be characterized as a...
A business is most likely to be characterized as a corporation if:
it has two or more owners, with each owner liable for every other owner's actions.
it has only one owner.
it is legally treated as a person and owned by stockholders who are liable for the actions of the corporate "person" regardless of their investment
each owner is liable only to the extent of his or her own investment.
MC Qu. 074 Which of the following statements is correct?
Which of the following statements is correct?
Stockholders are legally liable for all the debt of a corporation.
A corporation is a business that is legally owned by its employees.
Corporations are legal entities that, in law, are treated as persons.
Most large companies and many small companies in the United States are not corporations.
MC Qu. 095 Government regulation of working conditions is an ...
Government regulation of working conditions is an example of:
government as a referee.
government as owner.
government as an actor.
government as a dictator.
10. MC Qu. 104 Which of the following would most likely generate ...
Which of the following would most likely generate a negative externality?
education
a lighthouse
cigarette smoke
employment
