Macro Sample Test _2 Ch 2,3

Macro Sample Test _2 Ch 2,3 - MacroTest#2Ch2,3 Student:_

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Macro Test #2 Ch 2,3 Student: ___________________________________________________________________________ 1. Which statement best describes a capitalist economy? A. The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government B. The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets C. The production and allocation of goods and services is determined primarily through markets D. The production and allocation of goods and services is determined primarily through government 2. A characteristic of centrally planned economies is that: A. The price is relatively unimportant in allocating resources B. Output reflects the pattern of consumer spending C. Income is fairly evenly distributed among individuals D. There are many incentives for innovation and hard work 3. As new firms enter an expanding industry: A. Economic profits tend to rise B. Economic profits tend to decline C. Normal profits tend to decline D. The industry becomes more monopolistic The following table illustrates alternative production techniques for producing 18 widgets that can be sold for $1 each for a total revenue of $18.
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4. You have a choice of 4 techniques above to produce your product, what is the maximum economic profit that can be obtained? A. Economic loss of $2 B. Economic profit of $1 C. Economic profit of $2 D. Economic profit of $3 5. Refer to the above table. At the $3 price for labor the most efficient technique will result in an: A. Economic loss of $2 B. Economic profit of $l C. Economic profit of $2 D. Economic profit of $3 6. Firms will tend to enter an industry when: A. Profits are high B. Demand is decreasing C. Costs of production increase D. The prices of substitutes fall 7. The term dollar votes means: A. Inflation will occur if consumers don't spend wisely B. Voters may be offered dollars to help elect certain political candidates C. Government is responsible for determining what will be considered legal tender D. Consumers "vote" for certain products to be produced by how they spend their incomes 8. Which is the main problem with the barter system of exchange? Barter:
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This note was uploaded on 06/05/2009 for the course ECO ECO2013 taught by Professor Jominy during the Summer '08 term at Broward College.

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Macro Sample Test _2 Ch 2,3 - MacroTest#2Ch2,3 Student:_

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