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1

Market economies require private property rights because without these rights:
A)governments planning would be impossible.
B)equitable outcomes would be more difficult to achieve.
C)market incentives to produce would be inadequate.
D)self-interest would overwhelm selflessness and too little output would be produced.
2

The underlying concept of fairness embodied by a market economy is best represented by which statement?
A)Them that works, gets; them that don't, starve.
B)From each according to his ability, to each according to his need.
C)Spare the rod, spoil the child.
D)There should be neither rich nor poor.
3

Which of the following is a characteristic of socialism in theory?
A)Private property.
B)Self-interest.
C)Distribution according to need.
D)Free markets.
4

The period 1750-1900, during which technology and machines rapidly modernized production, is generally called the:
A)Industrial Enlightenment.
B)feudalistic period.
C)Industrial Revolution.
D)mercantilistic period.
5

The market where households supply factors of production to businesses and are paid by businesses for doing so is the:
A)goods market.
B)factor market.
C)capital market.
D)money market.
6

Most businesses in the United States are
A)non-profit businesses.
B)corporations.
C)sole proprietorships.
D)partnerships.
7

One advantage of a corporation over a partnership is:
A)corporate profits are subject to a lower tax rate.
B)limited liability.
C)it is easier for owners of a corporation to make business decisions.
D)corporate owners have greater direct control over operations.
8

Federal government's largest expenditures is on
A)defense.
B)income security.
C)interest.
D)health and education.
9

The government serves as a referee in the economy when it:
A)increases expenditures on education.
B)decreases income taxes.
C)increases Social Security transfers.
D)alters health and safety standards for certain industries.
10

Globalization:
A)eliminates old jobs without creating new jobs.
B)creates new jobs but also eliminates jobs.
C)creates new jobs without eliminating jobs.
D)neither creates nor eliminates jobs.





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