Have an account?
Skip to Content
Build your own quiz
15 questions
Show Answers
See Preview
- 1. Multiple Choice
Canada has a universal healthcare system, providing government-funded medical services to all citizens. However, the vibrant private sector helps to push an economy that is one of the world's most successful. Intense and frequent trade with the United States provides the country with great wealth.
These facts provide evidence that Canada has a
mixed economy
market economy
traditional economy
command economy
- 2. Multiple Choice
Juan realizes that if he studies an extra hour for his test, he will score five points higher. For each extra hour spent studying, he is getting one hour less sleep. When deciding whether to spend an additional hour studying or sleeping, Juan is engaged in what economic activity?
bartering
marginal analysis
market transactions
trade negotiations
- 3. Multiple Choice
In college, people can major in a wide variety of fields including medicine, journalism, business, and design among others. This is an example of the concept of
scarcity
specialization
elastic demand
progressive taxation
- 4. Multiple Choice
Which characteristic of the private sector BEST explains why a market economy is unable to reliably address environmental concerns and requires government regulation?
profit motive
obligation to shareholders
independent management
reliance upon commercial loans
- 5. Multiple Choice
Competition and free enterprise are most common in which type of economic system?
market
command
planned
traditional
- 6. Multiple Choice
What are governments MOST LIKELY attempting to do when they increase unemployment benefits, implement more welfare programs, and rearrange tax brackets?
resolve market failures
redistribute income
invest in technology
protect property rights
- 7. Multiple Choice
Investing heavily in new capital equipment and technology is MOST related to
economic freedom
supply and demand
economic growth
opportunity costs
- 8. Multiple Choice
Economics growth is often tied to investment in machinery, new technology, and education of the population. This is because
the only way to measure economics growth is to observe changes in these factors
investment in these items are the sole determinant of output
all of these items improve capital
these items lead to a greater productivity of inputs
- 9. Multiple Choice
When two people engage in trade, both sides will benefit if the trade meets which two requirements?
voluntary and non-fraudulent
non-voluntary and fraudulent
free and international
rational and marginal
- 10. Multiple Choice
In what way does specialization increase productivity?
Specialization reduces scarcity
Specialization reduces the costs of production
Specialization increases the demand for a product
Specialized workers are generally more highly educated
- 11. Multiple Choice
A headline reads: "High Tech Firms Begin Producing New Generation of Computers." What basic economic question is being addressed in this headline?
how to produce
what to produce
when to produce
for whom to produce
- 12. Multiple Choice
When the government breaks up monopolies and tries to address shortages or surpluses, they are serving the role of
resolving market failures
redistributing income
providing public goods
protecting private property rights
- 13. Multiple Choice
Which of these is a correct description for one of the ways in which a command economy differs from a market economy?
Market economies discourage free enterprise.
In a market economy, the government sets prices.
Command economies tend to have a higher per capita GDP
In a command economy, individuals have less economic freedom.
- 14. Multiple Choice
Which of these is found MORE often in command economies than in market economies?
consumer sovereignty
competition
regulations
private ownership
- 15. Multiple Choice
In the US, if a company does not follow environmental regulations and over-pollutes, they will probably have to pay a fine. Why does the US government force certain industries to comply with environmental regulations?
To reduce the cost of goods for consumers.
To reduce barriers to entry in the industry.
To make sure companies bear the cost of their own pollution.
To make sure that no company can develop into a monopoly.
- Answer choicesTagsAnswer choicesTags