Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
Which of the following would be a topic emphasized in a macroeconomics course?
A)factors which determine how fast a nation's economy is growing.
B)how a firm decides the price it will charge for one of its products.
C)how a consumer chooses which goods to buy.
D)the factors that would cause the demand for a specific product to increase.
2
Adam Smith believed that when people tried to improve their own situation, their actions often benefited the rest of society. This idea is known as the:
A)kinked demand theory.
B)invisible hand.
C)stored trade multiplier.
D)demand accelerator.
3
Which of the following statements would a follower of Adam Smith be most likely to make?
A)The federal government should carefully regulate businesses to ensure that they are responsive to the needs of consumers.
B)Market economies are flawed because they put too much emphasis on economic growth and not enough on environmental problems.
C)The key to economic growth is to avoid heavy borrowing by pursuing policies that result in a balanced budget.
D)If people are given the freedom to follow their own interests, they will end up promoting economic growth that benefits society as a whole.
4
When the supply curve and demand curve for a particular good are on a single graph, the point at which the two curves intersect identifies the:
A)total profit earned by producers.
B)total amount of resources that will be needed to produce the good.
C)size of the surplus or shortage that exists in the current time period.
D)equilibrium price of the good.
5
The markets for detergent, beer, and cigarettes all are dominated by just a few sellers. These markets are best described as:
A)monopolistic competition.
B)perfect competition.
C)an oligopoly.
D)a monopoly.
6
The market price of peaches is currently falling. In a free-market economy, the most likely explanation of this price change is that:
A)the government has decided to set a lower price because sellers have been price gouging.
B)there is a surplus in the market for peaches.
C)the supply of money has increased.
D)the equilibrium price is higher than the market price.
7
A possible benefit of socialism is its:
A)ability to stimulate rapid economic growth.
B)emphasis on low tax rates.
C)emphasis on social equality.
D)ability to encourage rapid technological change.
8
Karl Marx believed that:
A)the key to promoting economic growth was to keep taxes as low as possible.
B)overpopulation was the most serious problem facing the world economy.
C)capitalism would eventually replace socialism as the dominant economic system.
D)workers should take over ownership of businesses and share in the wealth they created.
9
A major trend in the world today is that:
A)free-market economies are moving more toward socialism, and socialist economies are moving more toward capitalism.
B)most countries are seeking to become more self-sufficient by limiting their reliance on trade.
C)governments in socialist economies are increasing their use of social programs and relying on higher tax rates to finance these programs.
D)governments in countries with capitalist economies are paying less attention to environmental concerns and issues involving social equality.
10
Which of the following results would be the clearest indication that an economy was experiencing deflation?
A)an increase in the money supply.
B)a decrease in GDP.
C)an increase in the PPI.
D)a decrease in the CPI.





To learn more about the book this website supports, please visit its Information Center.
(c)2005 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Understanding Cdn BusinessOnline Learning Center with Powerweb

Home > Chapter 2 > Multiple Choice Quiz