Socialism is an economic system characterized by:

Socialism is an economic system characterized by:
 a. private ownership of resources and market decision-making.
  b. government ownership of resources and centralized decision-making.
  c. cooperation, sharing, and little central government.
  d. a complex structure of rules and traditions that dictates decision-making.

QUESTION 2

A change in real GDP divided by a change in investment is called the:
 a. spending multiplier.
  b. demand multiplier.
  c. equilibrium multiplier.
  d. investment multiplier.
  e. spending multiplier

QUESTION 3

The Fed is often considered the bankers' bank because it:
 a. demands much more currency than it has available.
  b. no longer has a monopoly on printing paper currency.
  c. lowers the discount rate in order to restrict the money supply.
  d. holds bankers reserves, provides banks with currency and loans, and clears their checks.
  e. refuses to uses its power of open market operations when a quorum of state-chartered bankers petitions it.

QUESTION 4

Which of the following applies to a real-world socialistic economy?
 a. Private ownership of all factors of production.
  b. Government ownership of all factors of production.
  c. Government ownership of most of the factors of production.
  d. Lack of central planning.

QUESTION 5

If the MPS = .25, and investment falls from 100 to 75, real GDP will decrease by:
 a. 25.
  b. 75.
  c. 150.
  d. 125.
  e. 100.