12)Black markets emerge during times of -price floors. -neither price floors nor
ID: 1161186 • Letter: 1
Question
12)Black markets emerge during times of
-price floors.
-neither price floors nor price ceilings.
-both price floors and price ceilings.
-price ceilings.
13)A socialist economy is characterized by
-public ownership of productive resources.
-an extensive reliance on markets to allocate final goods and services.
-an extensive reliance on the profit motive to govern resource allocation decisions.
-elimination of the problem of scarcity since all basic necessities are available to all citizens.
14)Which of the following statements is true?
-Taxing the poor will lead to a more equal distribution of income.
-A basic trade-off exists between the goals of equity and efficiency for a society.
-The forces of supply and demand will automatically lead to an equitable distribution of income.
-Taxing the wealthy will lead to a more efficient economy.
15) An increase in the rate of economic growth curve could be caused by all of the following except
-a movement along the production possibilities curve so that the society produces more consumer goods and less capital goods.
-an increase in research and development spending for space technology that improves the quality of the nation's capital stock.
-an increase in immigration that increases the country's labor force by 20 percent.
-a national tax that encourages all employers to provide more training and education for employees which leads to an across-the-board upgrade of the skill level of the nation's workforce.
16)As we move along a production possibilities curve and acquire larger and larger amounts of one good (e.g., guns), the sacrifices of the alternative good (e.g., butter) become larger and larger. This is an illustration of
-the law of supply.
-the law of demand.
-increasing opportunity costs.
-decreasing opportunity costs.
17)In the former Soviet Union distributing scarce consumer goods was accomplished by
-making the consumer stand in a long line for hours if not days.
-None of the choices are true.
-higher prices which eliminated some potential consumers.
-the government simply printing more money.
18)The U.S. distribution system is
-determined by a modified version of one dollar, one vote.
-identical to that of the former Soviet Union.
-similar to the fascist 1930's Germany.
-based on a pure socialist economy
19)Which statement is true?
-We have had recessions about every three years since World War II.
-The United States has a larger national output than any other country in the world.
-None of the statements are true.
-There were no recessions while Ronald Reagan was president.
20)Which of the following is a typical attribute of a socialist country?
-All of the choices are attributes of a socialist country.
-A large-scale redistribution of income program from the wealthy and well-to-do to the middle class, working, class and the poor.
-Taxes are very high, particularly on the wealthy classes.
-Cradle-to-grave security for its citizens. course microeconomic
Explanation / Answer
(12) (D)
A price ceiling increases the quantity demanded but decreases the quantity supplied of a good, creating a shortage that leads to black marketing.
(13) (A)
In a socialist economy, the government controls all productive resources.
(14) (B)
Scarcity causes a trade-off between efficiency and equity.
(15) (A)
For a PPF-model, economic growth is shown by an outward shift of the PPF curve, not a movement along it.
NOTE: As per Chegg Answering Policy, first 4 questions are answered.
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