ch 2 true or false

ch 2 true or false - Question 1 0 out of 1 points A command...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1 0 out of 1 points A command economy is characterized by the private ownership of resources and the use of markets and prices to coordinate and direct economic activity. Selected Answer: True Correct Answer: False Feedback: This applies to market, not command, economies . See p. 29 of the text. Question 2 1 out of 1 points In a market system, the government owns most of the property resources (land and capital). Selected Answer: False Correct Answer: False
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Feedback: Correct, this is a false statement. This applies to command, not market, economies . See p. 29 of the text. Question 3 1 out of 1 points Pure capitalism is also called laissez-faire capitalism. Selected Answer: True Correct Answer: True
Background image of page 2
Feedback: Correct! Laissez- faire means "let it be", and in pure capitalism this is what the governme nt does -- it doesn't interfere with the operation of the market system. Reread p. 29 if you were uncertain. Question 4 0 out of 1 points Property rights encourage investment, innovation, exchange, maintenance of property, and economic growth. Selected Answer: False Correct Answer: True
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Feedback: See the discussion about property rights on p. 30 of the text. Question 5 0 out of 1 points The freedom of business firms to produce a particular consumer good is always limited by the desires of consumers for that good. Selected Answer: False Correct Answer: True
Background image of page 4
Feedback: This is an application of consumer sovereignt y, discussed on p. 34. While businesse s are free to use resources to produce the goods they wish to produce, none of that makes sense if consumers won't buy these goods. Question 6 0 out of 1 points The pursuit of economic self-interest is the same thing as selfishness. Selected Answer: True Correct Answer: False
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Self- interest is what motivates our decisions, but that doesn't mean we are selfish. In fact, such behavior is reasonabl e so that we maximize our satisfactio n. See the text on p. 30-31. You might also review the discussion on purposeful behavior on p. 4-5 in Chapter 1. Question 7 1 out of 1 points When a market is competitive, the individual sellers of a product are unable to reduce the supply of the product and control its prices. Selected
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 25

ch 2 true or false - Question 1 0 out of 1 points A command...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online