The economic system that includes private ownership of most resources and the coordination of economic activity by price signals generated by market forces is
a. capitalism
b. socialism
c. communism
d. mercantilism
e. progressivism
QUESTION 2Which of the following does the country of Fuggedaboutit not have to be concerned about?
a. choosing a system of resource ownership
b. allocating resources
c. earning a profit for its owners
d. providing individual incentives
e. answering the three economic questions
QUESTION 3Economic systems can be classified based on
a. the ownership of resources only
b. the ownership of resources, the types of crops grown, and the incentives used to motivate people
c. the way resources are allocated to produce goods and services and the incentives used to motivate people only
d. the ownership of resources, the way resources are allocated to produce goods and services, and the incentives used to motivate people
e. the ownership of resources, the way resources are allocated to produce goods and services, and the average education of workers
QUESTION 4Around the world, once-socialist countries have replaced central plans with
a. foreign aid
b. budgets
c. special interests
d. markets
e. capital equipment
QUESTION 5Disappointed with problems caused by being a recipient of foreign aid from donor governments, the country of Upsilon should consider
a. refusing all future offers of aid
b. privatizing of aid, such as receiving funds from private not-for-profit agencies
c. becoming a donor instead
d. seeking even more government-sponsored aid
e. All of the answers are correct
QUESTION 6A downside to foreign aid is that
a. developing countries have not necessarily increased their ability to become self-supporting at higher standards of living
b. many recipient countries are doing less of what they had done well
c. the agricultural sectors of recipient countries have suffered
d. government officials have been insulated from their own incompetence
e. All of the answers are correct
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