econ test - 1 Which best defines laissez-faire capitalism A...

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1. Which best defines laissez-faire capitalism? A. Business activity and natural resource usage and distribution are not regulated by the government B. Government controlled distribution of natural resources with little involvement in other sectors of the economy C. Ownership of the means of productions is split between public and private entities D. Existence of extensive legislation governing internal trade 2. A statement from Exxon-Mobile that their third quarter profits were down 15% from last year is an example of: A. Normative economics B. Positive economics C. Macroeconomics D. Differentiated economics 3. Which of the following defines the opportunity cost of production? A. Using a resource in one capacity in production eliminates the ability to use it in another B. Loss of potential profit in order to capture a larger market share C. Streamlining production costs to maximize profit D. Increasing overhead costs in order to expand production 4. Which best describes the economy of the United Kingdom of Great Britain? A. Traditional economy B. Command economy C. Market economy D. Mixed economy 5. Economist and philosopher Adam Smith's expression, “the invisible hand” refers to a theory or belief that: A. the greed of capitalists seeking wealth actually helps the poor in society B. the world economy is governed by a series of natural laws C. outside forces beyond human control influence the economy D. governments should not impose economic regulation 6. Which best describes the calculation of GNP or Gross National Product? A. The total value of goods and services produced domestically, plus income earned by citizens outside the country, less foreigner's income from domestic production B. The total value of goods and services produced domestically by all workers C. The total value of goods and services produced domestically less production costs except wages paid D. The total value of goods and services produced domestically, less income from foreign workers producing domestically, less the total value of goods consumed domestically 7. In the United States changes in the money supply are controlled by: A. the U.S. Treasury Department B. the Federal Reserve Bank C. the House Committee on Financial Services D. the Bureau of Engraving and Printing 8. If you purchase a 10 year, $15000.00 bond with an annual coupon rate of 6%, what is your total return at maturity?
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A. $900.00 B. $9000.00 C. $15900.00 D. $24000.00 9. In graphing supply and demand, at what point is market equilibrium achieved? A. When supply is slightly above demand B. When supply is slightly below demand C. When supply and demand intersect D. When demand is significantly above supply 10. In the United States which industry could best be defined as an oligopoly? A. Shoe manufacturing
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This note was uploaded on 02/16/2010 for the course ECON ECOn 2023 taught by Professor Jeffholt during the Spring '10 term at Tulsa Community College.

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econ test - 1 Which best defines laissez-faire capitalism A...

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