View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 2, The Tyranny of Controls.

Multiple Choice Questions

1. The national security argument for protection states that:
(a) all industries should be protected
(b) industries vital to national defense should be given protection
(c) protection is not in the best national interest
(d) protection promotes national welfare

2. A change in prices affects all but the following:
(a) incentrive to act on information
(b) wages
(c) procedures income
(d) nothing

3. The price system functions in such a way that each individual acting in his own best interests, makes everyone better off. This concept is known as the:
(a) command
(b) voluntary nature
(c) invisible hand
(d) visible hand

4. Governments intervene in foreign currency markets:
(a) by increasing exports
(b) by buying and selling domenstic and foreign currency
(c) by increasing imports
(d) by refusing to release currency to the market

5. The command elements of every economy include things like:
(a) military conscription
(b) prices
(c) forbidding the purchase and sales of heroin
(d) court orders

Short Answer Questions

1. What kind of international trade is best?

2. Which of the following is not a function of the price system:

3. The distribution of income is determined by all but the following:

4. An unfavorable balance of payments situation meant:

5. The economy functions on the basis of:

(see the answer key)

This section contains 235 words (approx. 1 page at 300 words per page) View a FREE sample