The United States is best known as a
A) pure price system.
B) dictatorship.
C) command and control system.
D) mixed economic system.
Ques. 2What is production? What economic factors are involved in production?
What will be an ideal response?
Ques. 3The prices of certain goods, such as ice and gasoline, often increase after a natural disaster such as a hurricane. The economic explanation for this observation is that
A) people panic in disaster situations.
B) disasters bring out the worst in people.
C) the disaster temporarily reduces the supply of the goods and increases the demand for the goods.
D) the disaster temporarily reduces the supply of the goods and reduces the demand for the goods.
Ques. 4When the price of tablets goes up and fewer tablets are purchased, this is representative of the
A) law of demand.
B) law of supply.
C) law of market operations.
D) law of increasing costs.
Ques. 5Wants as an economic concept includes
A) both material and nonmaterial desires.
B) only the purchase of necessary basic goods.
C) only the desire for luxury goods.
D) only those goods that can be purchased with one's paycheck.
Ques. 6Market failures include all of the following EXCEPT
A) equalization of quantity supplied and quantity demanded.
B) public goods.
C) positive externalities.
D) negative externalities.
Ques. 7An example of a market failure is
A) a firm is dumping toxic waste that is making people sick.
B) when not everyone who wants to see a major league football game can.
C) when there is an increase in demand and a shortage develops.
D) unemployment.
Ques. 8The marginal income tax rate applies to
A) all income earned by a family.
B) the income in the highest tax bracket reached.
C) the income of the highest income U.S. taxpayers.
D) the income received by people above the national average.
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